Should You Use a Health Insurance Broker?
You should use a health insurance broker if you want guidance and advice when shopping for coverage.
Find Cheap Health Insurance Quotes in Your Area
Health insurance brokers are licensed to help you shop for and buy health insurance plans. Brokers can help you get quotes from several companies and guide you through applying for coverage. But brokers can usually only get quotes from certain companies, which means you might not see all your options.
What is a health insurance broker?
A health insurance broker is an expert who can help you pick the best plan for your needs.
Brokers can help you understand your health insurance options, research health insurance companies and find the right plan for you. Typically, you don't need to pay a broker. Health insurance companies usually pay brokers a commission when they sell a policy.
Health insurance brokers are licensed and regulated by the states they work in. This helps them keep up with current trends and issues in the insurance industry so they can best compare policies and help you find the right option.
Health insurance brokers usually work with people who don't have group health insurance through their employers. Brokers will often help you shop for plans on the federal marketplace or a state marketplace. They may also be able to help you apply for a policy directly with a health insurance company.
Brokers are also important for small businesses that provide health plans to their employees. Health insurance brokers can help these companies find a group plan that matches the needs of the employees.
What does a health insurance broker do?
A health insurance broker gets quotes for you from multiple companies and helps you choose the best option for your needs.
A broker will help you understand what you need in a health insurance plan. Then, they'll shop for a plan that fits your situation. Finally, a broker will help you fill out your health insurance application.
Offers guidance
One of the most important jobs of a health insurance broker is to help clients find a plan that fits what they're looking for.
A broker listens to your situation and helps you understand what kind of coverage is best. If you have questions about how health insurance works, a broker can give expert advice and recommendations.
If you're a business owner, you may need to offer health insurance to your workers. A group health insurance broker can help you find the right policy. They can also help you understand the rules of group health insurance, like which employees you need to cover.
Compares companies and plans
Most brokers work with multiple companies, which lets them compare health insurance plans and find the best one for you. Brokers look at each plan's monthly rate, coverage options and extra features to match you with a plan that works for your situation.
However, you can only get quotes and buy a policy from the companies the broker works with. Brokers might also be able to help you get coverage from the federal health insurance exchange or a state exchange.
Helps you apply for a policy
A broker can help you fill out an online application or a paper application. You'll need to have some information ready, like your name, address and financial information. A health insurance broker can help make sure the application is correct and complete.
Make sure you give your broker accurate income information. Your income impacts whether or not you can get a lower monthly rate with tax credits.
If you're buying a policy from a marketplace, you'll have to apply in the late fall and early winter, during what's called "open enrollment." You can apply for health insurance outside of open enrollment if you qualify for a special enrollment period. There are several ways to qualify, including moving, losing coverage through your job or getting married.
If you're buying coverage directly from a company, you might be able to buy a policy at any time without qualifying for special enrollment, but it depends on the company's rules.
Find Cheap Health Insurance in Your Area
Pros and cons of using a health insurance broker
Working with a health insurance broker is generally helpful, but there are potential drawbacks. Knowing the pros and cons before you contact a broker can help you decide if it's the right option for you.
Pros
-
Helps you understand health insurance
-
Makes getting multiple quotes easier
-
Offers expert advice
-
Services are typically free
Cons
-
May only work with certain companies
-
Other clients may cause a delay in service
-
Commission may create potential conflict of interest
Because brokers get commissions based on the policies they sell, it's possible that they could suggest products that aren't right for you. Brokers are licensed and regulated, though, so you can report suspicious activity to your state's Department of Insurance.
How to find a health insurance broker
You can find a health insurance broker by using online search tools, calling local agencies, or talking with family and friends.
Use a search tool: HealthCare.gov offers a search tool that shows agents, brokers and health coverage assistance in your area. You can also use a search engine to look for health insurance brokers near you.
Contact your state's Department of Insurance: Brokers are regulated by each state's Department of Insurance, which means your state may have a list of brokers. It might also have a search tool to find a health insurance broker near you.
Check with local agencies: Some brokers work in insurance agencies. Call insurance agencies in your area or check their websites to see if they have a health insurance broker in the office.
Get a referral: If you know someone who has used a broker before, it can be good to talk about their experience. You might find that their broker is also a good fit for you.
To find the right broker for you, think about what type of help you need. You might pick a different broker if you have a small business than you would if you're shopping for yourself, for example.
It's also a good idea to ask about fees. You don't usually have to pay a health insurance broker, but it's smart to check before scheduling an appointment.
What is the difference between a health insurance agent and a broker?
Agents represent insurance companies while brokers represent you as a client.
Agent
A health insurance agent works for a single insurance company and only sells that company's products. An agent represents an insurance company
Broker
A health insurance broker can get quotes and policies from more than one company, although they still might be limited to companies they have a contract with. A health insurance broker works for you. Their job is to review the companies they represent and help you find the best policy.
While there is a difference between agents and brokers, the words are often used interchangeably. If you're looking for a health insurance broker, ask if they can get you quotes for more than one company. If they can, they're a health insurance broker.
Frequently asked questions
Should I use a health insurance broker?
You should use a health insurance broker if you need help figuring out what the best health insurance option is for you. If you have specific health care needs or if you own a business and need a group policy, a broker can also be useful.
How can I find health insurance agents near me?
Using the HealthCare.gov search tool is one of the easiest ways to find a local health insurance broker. Your state's Department of Insurance may also be able to help you find health insurance brokers near you. You could also contact local agencies to see if they have a health insurance broker on staff.
What are the disadvantages of using an insurance broker?
Some brokers only work with certain insurance companies. This means you'll only get quotes from those companies, even if another insurance company has a better plan for you. It's also possible that brokers could recommend a plan that isn't right for you because they get a commission. If this happens, you should report the broker to your state's Department of Insurance.
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.