Contorno interviewed for BenefitsPro article on Broker Compensation & the CAA
Excerpt from BenefitsPro:
Broker compensation disclosure: Will CAA put brokers on the hot seat?
For the growing number of brokers already offering full disclosure of what they’re paid, the disclosure rules will not be a big change.
The Consolidated Appropriations Act of 2021 (CAA) requires brokers and consultants who work in the health benefits field to disclose compensation from sources such as insurance carriers, including commissions, fees, and non-cash compensation. The new disclosure rules are similar to rules that went into effect for the retirement plan industry about 10 years ago.
For some in the industry, the disclosure rules will not be a big change: a growing number of brokers already offer full disclosure of what they’re being paid by carriers. David Contorno, founder of E Powered Benefits has been a proponent of full disclosure for brokers for some time. “Most employers don’t understand how brokers are compensated,” he said. “Brokers are not out there actively disclosing how they’re getting paid, and employers are not demanding to know how brokers are getting paid. Brokers are essentially purporting to represent the interests of their clients, but they’re paid by this third party that has very different interests—that’s the problem with the system.”
Read the full article HERE.