Because when your client asks, you should have more than a guess — you should have the answer.
Every broker has heard it:
“How long is our rate guaranteed?”
“How will we be billed?”
These aren’t just pricing questions — they’re trust questions. They’re about stability, predictability, and whether your client can count on the program you’re bringing to the table.
This guide is here to give you the real answers. No jargon. No selling points. Just straight talk you can use in your next client conversation.
Rate Guarantees: What They Are and Why They Matter
An EAP rate guarantee means the price your client pays is locked in — regardless of usage or market shifts. It gives your client the one thing they don’t get enough of: cost certainty.
Most EAP providers offer a 3-year rate guarantee. Some may offer 1- or 2-year terms depending on the size or scope of the engagement, but 3 years is standard for most fully bundled EAP programs.
That means:
- No hidden increases
- No annual escalators
- No surprises during renewal season
In a world where benefits costs rise year over year, a rate guarantee is a moment of stillness — and a strategic advantage.
How Payment Schedules Work (And Why It’s Not One-Size-Fits-All)
EAPs are billed on a PEPM basis — Per Employee Per Month. That number is based on the client’s total eligible population, not how often the service is used.
The payment frequency can be structured in a way that aligns with your client’s financial rhythm:
- Monthly: Often used by larger employers or those who prefer to reconcile with payroll
- Quarterly: Offers some breathing room and works well for mid-size clients
- Annually: Simple, predictable, and preferred by small or budget-conscious organizations
The goal is flexibility. Clients aren’t boxed into a rigid structure — they get a schedule that works for their business.
Headcount Fluctuations and Census Billing: What You Need to Know
This is where brokers win credibility.
If your client asks, “What happens if our headcount changes?” you should be ready.
EAP contracts typically include a minimum billing threshold based on estimated headcount. But they’re also built to scale with the organization. Here’s how it works:
- Each billing period (monthly or quarterly), the EAP provider receives an updated headcount
- The client is billed the greater of the contract minimum or the actual headcount
- If the client grows, the cost adjusts — if the client shrinks, they’re protected by the minimum
It’s not about squeezing more revenue. It’s about ensuring employees stay covered no matter what’s happening with staffing.
And in most cases, if headcount increases significantly mid-contract, that rate guarantee still holds. That’s value with stability — and it’s something worth talking about.
Bottom Line for Brokers
When your client asks about EAP pricing, they’re not just asking about cost. They’re asking:
- Can we trust this model to stay predictable?
- Will this partner work with our business cycles, not against them?
- Can we make this easy to manage for our team?
With this guide, you can answer with confidence.
Rate guarantees create financial stability.
Flexible billing supports operational flow.
PEPM pricing means no surprise bills.
And census-based billing ensures the right people always have access.
This isn’t just about cost. It’s about control. And now you have the language to explain it.