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Brokerage Services for Insurance and Employee Benefits
Fee / Commission (Questions 1 – 7)
The proposed fee arrangement is utilizing a fixed-fee method to provide services to Summit Medical Group.
The assumptions used in determining the rate include:
1,400 minimum professional work hours
1,400 total eligible employees
Applicable fixed costs for travel, office supplies, salaries, etc.…
The employees deemed necessary to service the account
The arrangement below would assume any revenue received pertaining to Summit not directly paid by the Practice
will offset the fees listed below. Should the situation arise where fees plus additional compensation exceed the
listed amount below, CBIZ will refund back to Summit Medical Group the difference. To achieve the benchmark
incentive after Year 1, will require keeping costs Per Employee per Month at or below the average of the last 2 years
PEPM prior to the engagement with CBIZ. The advantage with the included incentive to Summit is to show we will
partner with you to control overall costs, while not burdening the practice with higher increases in the instance of a
difficult claims year. Should, in any year, Summit not reach the PEPM benchmark, we will revert back to the
$160,000 for the following year after the study. If after the year, we are back at or below the benchmark, the
increase will be based on the most recent incentive based year. Illustration is listed below:
Year 1
Year 2
Year 3
Year 4
Total Fixed Cost
$160,000
$160,000
$160,000
$160,000
Potential
Benchmark
Incentive
(compounded)
0%
4%
4%
4%
If Benchmark
Reached
$160,000
$166,400
$173,056
$179,978.24
Fees to be paid monthly
We agree to disclosure and remitted requirements of the RFP
We are not proposing a commission arrangement
Our philosophy is to provide a compensation structure which will allow us to provide our full resources to
the benefit of our client, and be incentivized to help the client control costs in lieu of benefiting from their
increased costs of the benefits package.
We disclose any and all contingency fees. It is not our practice to consider contingency fees when
placing business, as such, the operating team for the project does not benefit from contingency fees.