# Gusto review: great payroll, and a broker that is not on your side of the renewal

Source: https://www.getprescience.com/guides/gusto-review
Author: Rishab Jain, Cofounder and CEO, Prescience
Published: 2026-10-27
Updated: 2026-10-27
Cite as: Rishab Jain. "Gusto review: great payroll, and a broker that is not on your side of the renewal." Prescience, October 27, 2026. https://www.getprescience.com/guides/gusto-review

Gusto is one of the best payroll products ever built and it is worth saying that first. The health insurance part is a different business. Gusto is not an insurer. It is a licensed broker that sells carrier plans inside its dashboard, and its revenue on that line is the commission the carrier pays it. That is a completely normal arrangement and it is why the fee looks like zero. It also means that when your renewal arrives at 14 percent, Gusto's advisors can move you to a different carrier, and no one in the exchange can change the number itself.

- **What it is:** A payroll platform that also acts as a licensed insurance broker
- **Their health fee:** $0 with Gusto as broker, $6 per employee to keep your own
- **Who carries the claims risk:** The carrier. Gusto never underwrites a plan
- **Prescience Diamond:** Health plan only, you keep your payroll

## Gusto is a broker, and the word broker is doing a lot of work here

The health page is explicit about the offer: "From group plans to health allowances across 9,000+ plans and 30+ carriers, Gusto helps you find the right coverage for your team and your budget, with no broker fees or hidden costs." Every number there is accurate. 9,000 plans is a large menu, 30+ carriers is a real footprint, and nobody sends you an invoice for brokerage.

The fee is not hidden, it is embedded. A licensed broker is compensated by the carrier out of the premium you pay, and Gusto is that broker when you buy through it. So the premium you see already contains Gusto's commission, the same way it contained your previous broker's. Moving to Gusto does not lower the premium. It changes who collects the commission inside it and which dashboard you enrol through.

That matters because of what a broker is paid to do. A broker's job is to place the plan and run the enrolment, and the carrier's commission schedule rewards placing the plan. It does not reward controlling the renewal, because the renewal belongs to the carrier's underwriter. Gusto can shop your group between carriers each year. It cannot make the underlying cost trend stop.

> **The first question to a benefits broker, Gusto included:** How is my proposal compensated, and by whom? Ask for the commission schedule in writing against the specific plan codes quoted. It is a one-line answer and it is the only way to compare two brokers who both describe themselves as free.

## The $6 is a toll on keeping the broker you already have

Gusto's own footnote states the arrangement plainly: "Benefits broker integration comes included at no extra cost with the Premium plan and is available at $6 per employee per month on the Plus plan." The health page repeats it: "Want to keep your broker? For only $6 per eligible employee per month, they can manage your plans right in Gusto."

Read that twice. The platform charges you six dollars per employee per month to let somebody else, someone you chose, administer your plan inside it. A 40-person company pays $2,880 a year for the privilege of keeping its own advisor. On Gusto's plus tier that is on top of the payroll subscription, and the payroll subscription is priced per person anyway.

There is a defensible reason for it. The integration costs money to run and Gusto would otherwise earn nothing on a plan it did not place. The commercial effect is less defensible. The free path is the one where Gusto is your broker and earns the commission. The paid path is the one where it does not. Both options are fine, and a founder should notice which one the pricing nudges toward.

**What the health side costs, by arrangement**

| Arrangement | Fee to Gusto | Who earns on the plan |
| --- | --- | --- |
| Gusto as broker of record | $0 | Gusto, through carrier commission |
| Your own broker, Plus tier | $6 per eligible employee/month | Your broker, through carrier commission |
| Your own broker, Premium tier | Included | Your broker, through carrier commission |
| Gusto health allowance route | Platform fee applies | The administrator of the allowance, and the carrier |

## The health allowance is an ICHRA, and Gusto does not run it

The third line on the product page is the one most founders actually want: pick-your-cost health reimbursement options. That is a health reimbursement arrangement, which for most small employers means an individual coverage HRA, and Gusto delivers it through partners rather than administering it itself. The allowance, the plan shopping and the reimbursement checking sit with the partner while Gusto keeps running payroll.

That is a sensible division and it is not a criticism. It does mean the interesting economics of the model sit outside the platform: the per-employee administrator fee, the affordability rules that decide whether your employees can use the exchange tax credit, and the verification work when a receipt arrives. On an allowance plan those are the parts that decide whether the arrangement works, and none of them are Gusto's product.

The other thing to be clear about is what a health allowance does to the employer's cost. It caps it. You set a monthly number per employee and the employees shop above or below it. That is a genuine solution to an unbounded renewal, and it moves the growth in health costs onto your staff, which is a decision worth making deliberately rather than by default.

- **Group plan through Gusto:** a carrier's small group policy, priced and repriced on the carrier's book.
- **Health allowance:** an ICHRA run by a partner. The employer cost is capped and the employee carries the rest.
- **Keeping your broker:** $6 per eligible employee per month on Plus, included on Premium.
- **HSA, FSA, dependent care, commuter:** administration add-ons with their own fees and rules.

## The renewal is a carrier's decision, and Gusto cannot vote

A fully insured small group plan is priced on the carrier's filed rates for age, location, family size and tobacco, and it is repriced at renewal. In the ACA small group market your own claims history cannot be a rating factor, which is the one mercy in the structure. Everything in that sentence is the carrier's business. Gusto's contribution is the enrolment plumbing and the shopping, and both are useful and neither is the price.

This is not a knock on the company, it is the boundary of the model. When a founder asks why the plan went up 14 percent, no broker can answer it with anything other than the carrier's filed trend and the movement in your census. The only structural answers are a different funding structure, a different risk pool, or a plan whose price is fixed in the quote before it starts, rather than set from a carrier's filings each year.

Gusto does make the comparison across those options easy, which is a real benefit and one reason the product is popular. It publishes a broad menu, it integrates deductions with payroll, and it tells you which of your employees are eligible. That is a better experience than a spreadsheet and a phone broker. It is still a shopping experience inside a market that is repricing every twelve months.

**A 40-person company, Gusto as broker, renewal year**

Illustrative. A 40-person company on Gusto Plus pays $950 per employee per month on a fully insured carrier plan, or $456,000 a year. Gusto is the broker of record, so there is no $6 integration fee. The renewal adds 12 percent.

- Current annual premium: $456,000
- Renewal at plus 12 percent: $510,720
- Broker fee to Gusto: $0. The cost is the carrier commission inside the premium
- The change in one year: $54,720, on an unchanged census
- What Gusto can change at renewal: The carrier. Not the trend

The brokerage line is small and the premium line is the whole budget. Shopping the plan is worth doing every year and it is not the same as changing the structure that produced the price.

## Who Gusto fits, and who should look elsewhere

For a company that runs payroll on Gusto and wants benefits administered in the same place, connecting health insurance there is the obvious and usually correct choice. The deductions sync, the enrolment is genuinely good, and at 10 to 50 people the administrative saving is real. Paying a broker $6 per employee to keep them inside the same dashboard is a small price for that.

Where it fits less well is the company whose problem is the price rather than the paperwork. Gusto will show you 9,000 plans, and every one of them is a fully insured carrier product priced on a pool and repriced annually. If your renewal has run in double digits for three years, a wider menu and a prettier enrolment flow are not the fix, and no broker fee of any size changes that.

**My take by situation**

| Your company | Does Gusto make sense? |
| --- | --- |
| A 10 to 50 person team already on Gusto payroll | Strong fit. Benefits administration in the same place is a real saving |
| A company with a broker it trusts | Fine, at $6 per employee on Plus, or included on Premium |
| A founder tired of annual carrier shopping | A wider menu is not a fix. Every plan in it is repriced the same way |
| A team spread across several states | Check the carriers in each state. The menu is 30+ carriers, not 30+ everywhere |
| A company that wants its cost capped | The health allowance route does that, and it moves the rest to employees |
| An employer whose premium is the problem | The dashboard is not where that is solved. The funding structure is |

The honest summary is that Gusto sells convenience and it sells it well. The insurance underneath is whatever a carrier will write for a small group in your state, priced the way every fully insured plan is priced, and Gusto is paid by that carrier to bring you to it. None of that is a trick. It is simply not the same thing as owning the cost.

> **Prescience Diamond: A company health plan with an effective $0 deductible.** Diamond is a company group plan with an effective $0 deductible and a broad national PPO network, for one monthly cost fixed in your quote, usually 10–20% below comparable fully insured coverage, with no admin fees and no need to change payroll.
> - **An effective $0 deductible** and simple copays shown before a visit
> - **A broad national PPO network,** plus providers we contract with directly
> - **24/7 physician-led care navigation** that books visits and explains costs
> - **Usually 10–20% below comparable fully insured coverage,** fixed in your quote, with no admin fees
> Best for teams of about 15 or more that want one great group plan. [Get a Diamond quote](https://www.getprescience.com/get-started?p=Employer&product=diamond)

## Frequently asked questions

**Is Gusto a health insurance company?**

No. Gusto runs payroll and acts as a licensed insurance broker. Plans are issued and underwritten by carriers, and Gusto handles enrolment, payroll deductions and administration inside its platform. Gusto does not carry the claims risk on any plan it sells.

**Does Gusto charge a fee for health insurance?**

Gusto says health insurance administration is free when Gusto is your broker, paid through the carrier's commission. If you keep your own broker, integration costs $6 per eligible employee per month on the Plus plan and is included on Premium. Payroll subscription fees apply in both cases.

**Can I keep my own broker and still use Gusto?**

Yes. Gusto's broker integration lets an outside broker manage your plans inside the platform. It costs $6 per eligible employee per month on Plus and is included on Premium, and Gusto says it works directly with your carrier to move an existing plan across.

**How many carriers and plans can I choose from through Gusto?**

Gusto advertises more than 9,000 plans from 30+ carriers. Availability varies by state and county, because small group plans are filed and priced state by state, so confirm the carriers quoting your company's location.

**What is a Gusto health allowance?**

It is a health reimbursement arrangement, usually an individual coverage HRA, delivered through a partner platform rather than administered by Gusto. The employer sets an allowance, employees buy their own coverage, and the partner verifies and reimburses. The employer cost is capped.

**Does Gusto make health insurance cheaper?**

Not by itself. Gusto is the broker, so the premium is the carrier's small group rate, which already includes broker commission. What Gusto changes is the administration experience, and the comparison across carriers. The funding structure and the renewal behave exactly as they would with any other broker.

**What is a better alternative to Gusto for health insurance?**

If the premium is the problem rather than the admin, Prescience Diamond is a company group plan with an effective $0 deductible and a broad national PPO network, for one monthly cost fixed in your quote, usually 10–20% below comparable fully insured coverage, with no admin fees and no need to change payroll.

## Sources

- [Gusto, employee health insurance benefits (checked October 2026)](https://gusto.com/product/benefits/health)
- [Gusto, broker integration and its fees (checked October 2026)](https://gusto.com/product/benefits/health/broker-integration)
- [KFF, 2025 Employer Health Benefits Survey](https://www.kff.org/health-costs/2025-employer-health-benefits-survey/)
- [CMS, Medical Loss Ratio](https://www.cms.gov/marketplace/private-health-insurance/medical-loss-ratio)