The new Broker Disclosure requirements that go into effect December 27, 2021 is directed at eliminating the traditional ambiguity surrounding the structure of compensation and incentives paid to brokers and consultants.
Specifically, the Consolidated Appropriations Act (CAA), from where these new requirements originated, outlines three major components of the law:
The benefit to employers is substantial…understanding how a broker is compensated for the services they expect to provide maintains a better level of broker/client transparency and enables the business owner to make wiser decisions in regard to their group health plans.