There are multiple objections you might encounter when reaching out to employers about offering group health insurance. Are you prepared with answers to these nine common employer objections?
The 9 Objections Brokers Hear Most Often
Objection 1: “My Employees Don’t Need Group Health Insurance”
Employer-sponsored health insurance is the source of health coverage for more than 165 million Americans under age 65. More than half (60%) of those under 65 – and about 86% of U.S. private-sector employees – rely on this coverage. Around 90% of covered workers express high satisfaction with their employer-provided insurance. More than two-thirds (68%) consider it their top workplace benefit. Both stats come from the U.S. Chamber of Commerce.
Objection 2: “It’s Too Expensive — I Can’t Afford to Offer It”
It’s true that group health costs are climbing. According to the Society for Human Resources Management (SHRM), costs in 2026 could surge by the largest amount in 15 years. A Mercer survey found total cost per employee will rise 6.5% on average – the largest bump since 2010. Even for those not making changes to their current coverage, the overall increase could approach nine percent on average. You can help employers see the array of options available to help them save. Among them are moving to an HDHP with Health Savings Account. Or changing carriers, plans, or networks. Or switching to a Defined Contribution plan like CaliforniaChoice.
Objection 3: “Rates Went Up — I’m Considering Dropping Coverage”
An employee benefits broker can help employers thoroughly shop the market and compare options for their group.
Objection 4: “We’re Too Small to Qualify”
The Affordable Care Act broadened the options for small businesses. Now employers can get group health coverage with just one W-2 employee (excluding the business owner/spouse).
Objection 5: “My Employees Can Just Use the ACA Marketplace”
While employees may be able to get coverage through the Covered California ACA Marketplace, the rates employers can offer on a group health plan could be more affordable. That is especially true if their employees do not qualify for the ACA subsidies. Those are now harder to get than in prior years because of changes under the One Big Beautiful Bill signed into law by President Trump in 2025.
Objection 6: “We Already Have a Broker”
If the employer has not compared options in the group health market recently, they are doing a disservice to themselves and their businesses. In today’s evolving market, it’s important to look at all of the options that may be available. That includes broad carrier and ACA metal tier choices, available no-cost value-adds, etc.
Objection 7: “I Don’t Have Time for the Paperwork”
A broker can simplify the shop and plan comparison aspects of group health insurance. A single carrier solution may – or may not – be the most effective choice. Maybe a multi-carrier exchange like CaliforniaChoice would be a better fit. Using a broker to compare available options won’t cost more – and it save the employer time and money.
Objection 8: “We Offered It Before and Nobody Enrolled”
Maybe your low employee participation rate in the past was due to the health plan(s) you offered. Maybe the cost was too high. Talking with a broker can help you identify possible alternatives.
Objection 9: “My Workforce Is Mostly Part-Time or Seasonal”
Under the ACA, seasonal employees (working less than six months per year) are generally exempt from employer-mandated health insurance, regardless of weekly hours. However, some employers may choose to offer partial benefits or health and wellness stipends to part-time or seasonal staff. A broker can help employers compare their options.
How Word & Brown Helps You Overcome Employer Objections
Word & Brown has been working with brokers for 40 +years. We can help you compare plans for your prospects and current clients. We can also streamline your business operations and delivered support tailored to your – and their – needs.
Consider everything you can get when you partner with us:
- Reduced administrative burden: We’ll relieve you of routine tasks often associated with the industry. That frees you up to focus on networking, referrals, and sales.
- Enrollment support: We can streamline your enrollments with digital tools like Ease and Employee Navigator plus downloadable, carrier-specific kits for Medical and Ancillary products.
- Back-office shield: Send us your paperwork. We will review and scrub your cases to ensure expedited processing. We’ll follow up as needed leveraging our positive carrier relationships.
- Integrated tech: One login. All of your quotes. Zero portal hopping. It’s that simple. You can quote on your own, or we will run quotes for you.
- Sales expertise: Our teams can help you grow your business with personalized resources, expert guidance, and tailored strategies to drive increased production.
- Carrier escalation: We have experience working directly with carriers. We don’t wait on hold. Our dedicated carrier reps’ calls, emails, and texts are answered promptly, so you get what you need to resolve clients’ issues quickly and efficiently.
- Market leader: Word & Brown is a recognized leader and a history of providing brokers with Service of Unequalled Excellence.
Contact your Word & Brown representative today to find out how we can help you overcome employer objections. If you’re not working with us yet, register online or call 800-869-6989 to get started. Put our connections and expertise to work for you and your clients
Frequently Asked Questions: Employer Objections to Group Health Insurance
How do you respond to an employer who says health insurance is too expensive?
Point them to specific cost-saving options rather than debating the premium itself — moving to an HDHP paired with an HSA, switching carriers or networks, or considering a defined contribution plan like CaliforniaChoice can all lower costs while still offering coverage.
What should I say when an employer wants to drop coverage after a rate increase?
Recommend shopping the market before dropping coverage entirely. A broker can compare carriers, plans, and networks to find better options, since a large renewal increase doesn’t necessarily mean coverage has to be dropped.
How do you handle an employer who says they already have a broker?
Encourage a second opinion. If an employer hasn’t recently compared carriers, ACA metal tiers, and available value-adds, they may be missing better-fitting options — reviewing the market doesn’t cost them anything.
