What is a Health Insurance Broker and Should You Use One?

Buying health insurance can be a complicated process.  There are so many plans, so many insurance companies, so many forms, and so many premiums, that a lot of people will just throw up their hands and not go through with the purchase.  Or they will end up with a plan that is either not in their best interest or costs too much.  One of the ways this can be avoided is by hiring a health insurance broker.  A health insurance broker can simplify the insurance buying process and get you a great plan at a price you can afford.

Knowledge of the Health Insurance Industry

Whenever you try to purchase something intricate about which you have no idea, there is a good chance you will miss something or pay too much.  Like negotiating with an experienced car salesman, there are tricks to the trade in the health insurance industry that many people know nothing about.

However, a health insurance broker knows all of those tricks.  They know how to leverage their client’s situation as best they can to get a good medical plan.  They know what to ask the insurance companies about and what traps to avoid.

Brokers also spend their time networking with industry insiders, such as agents and executives of insurance companies.  Because of these relationships, they are able to talk on a more personal level than an average customer.

It is very hard to get the best deal without expert knowledge of the insurance world, and a broker can bring that to you.

Leverage of Having Multiple Clients

Since a health insurance broker has multiple clients, he or she can use that to help get good pricing for all of them.  Insurance companies want to keep brokers happy so that the brokers keep coming back to them for possible business opportunities.

When individuals go out and look for a good insurance plan on their own, they do not have this leverage.

A Health Insurance Broker Leaves You Free to Do Other Things

Because a broker searches for good insurance plans for a living, they can do the work much more efficiently than an non-expert.  They know exactly who to call and exactly how to read policies and contract.

This leaves their customers to go about their business without worrying about looking up insurance companies and calling agents.  The customer can hire the broker and wait for the broker to bring them the best plan.

How Do Brokers Get Paid?

A health insurance broker gets paid through commissions in the policy premium.  Typically this rate has been around 5%.  However, with limitations on the loss ratio of medical plans, some insurance companies have begun to lower the rate they pay out in commissions.  If you hire a broker, just make sure to find out in advance how much they take in commissions.

Will There Be a Difference if I Use a Health Insurance Broker?

If you try to find low cost insurance on your own you can probably find a good plan at an affordable price.  But it will take you time and energy and you might not find the best plan at the best rate.  A health insurance broker can give you peace of mind that you are getting the coverage you need.

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