A health insurance broker is trained to educate and guide their clients, giving them an insider’s perspective on the insurance industry. Photo by Storyblocks.
As the costs of living (especially those associated with medical inflation) keep their white-knuckled grip on the American people, weâve found that more and more people are interested in learning about the insurance industry than ever before. Health insurance brokers are insurance experts who exist to help demystify the insurance industry and set the record straight for curious consumers. Here are ten of the most-asked questions about brokers that our brokerage gets…and our no-nonsense answers.
What does a health insurance broker do?
As stated above, a health insurance broker is a certified insurance expert. They educate their clients on the industry, compare policies across company lines, and help people find the right plan for their circumstances.
What are the advantages of using a broker to find my health insurance?
Health insurance brokers represent their clients, not big, brand-name insurance companies. Because they work for their clients, they can analyze the entire market and offer them more in terms of policy options.
To better illustrate the idea, imagine that you need a new winter coat. You decide to go shopping. At your local department store, you ask the clerk âWhat winter coats do you have?â The clerk walks you to the storeâs coat rack, answers questions, and offers guidance where necessary. If one of the coats youâre shown meets all your needsâfits well, keeps you warm, has enough pockets, and is within your budgetâthen you buy the coat and go home. Easy peasy! However, what if you canât find a coat that checks your boxes at the store? What if the clerk recommends something that is too pricey, or they donât have your size in stock? Because the clerk is a department store employee, they must recommend coats from the storeâs inventory. Even if their advice is good, your options are limited to what you see on the rack.
Conversely, letâs pretend you need a winter coat and you get a call from a personal shopper who wants to help you find the right one for free. You decide to go for it and tell them your budget, size, and everything youâre looking for in terms of coat quality and special features. Once youâve given the personal shopper your list of must-haves, they scour every store in town. At the end of the day, they return with the perfect coat.
In this example, shopping for an insurance policy by working directly with a carrier or a company-affiliated agent would be like going to your local department store. If youâre new to the insurance world, you will be hearing different pitches from every single company you encounter. You may find exactly what youâre looking for at the right price while considering their pitches, but you also may come up empty or end up paying more than youâd like for something that isnât quite what youâre looking for. Working with a broker is like having a personal shopper, only instead of clothes, they shop for insurance plans; and instead of you having to pay them to help you, theyâre paid by whatever company you decide to buy a policy from. Clientâs choice!
How do I choose a reputable health insurance broker?
Brokers are required by law to maintain an insurance license. Keeping an insurance license active requires hours of diligent studying and testing. The federal and state governments mandate brokers retest and renew their licenses frequently because the insurance industry changes often. In Texas, a broker must renew their license every two years. You can verify that a broker is in good standing with the state by searching their name and license number online. Additionally, the best brokers will show you their credentials and certifications upfront so you can verify their documents straight out of the gate. A few other tried-and-true methods are as follows:
- Do a quick Google Search for highly rated insurance brokerages and individual brokers in your area. Spend some time reading reviews. What are clients experiencing? How does the organization or individual handle positive and negative reviews? Are there any specific people named that you could reach out to or request?
- Ask around your social circles or on social media for insurance broker recommendations. Everyone needs insurance, so chances are that you already have a lot of connections to great brokers. Plus, you may end up trusting the reviews of a colleague over those posted by strangers online.
- Keep your eyes peeled for broker kiosks or standees related to health insurance. Often, brokers will set up shop in established businesses like grocery stores or doctor’s offices to get in front of people and assist them while they are on the go.
Do brokers receive incentives from insurance companies that could influence their recommendations? How can I be sure theyâre giving me truly unbiased advice?
There are no laws preventing insurance companies from offering incentives to brokers. However, smart brokers will never sell someone a policy just because they get a bonus. Health insurance brokers want âforever clients.â Keeping clients happy and safe is its own incentiveânot just because itâs the right thing to do, but because brokers will earn residual income for keeping clients on their books. So, when a satisfied customer decides to renew their policy for another year, the insurance company will send the broker money as a way of saying, âHey, thanks for taking care of our client.â Getting a fast cash bonus or a prize incentive for selling something to a client that they donât truly need can destroy a broker in the long term. Their unhappy customers will eventually walk away, and the broker will stop receiving residual income. Retention truly is everything!
That said, if you feel like youâre being strong-armed into buying a specific policy from a particular company during your broker meetings, it never hurts to ask for more options. A trustworthy broker will happily jump back into the market and bring you the variety youâre looking for. If theyâre resistant or get defensive, thatâs your sign to find someone new!
Can a broker help with claims and other issues after a customer purchases a policy?
Yes, your insurance broker will be able to help with claims and any other issues that you encounter after youâve purchased a policy. You can contact them about coverage questions, upcoming policy changes, member cards, doctorâs visits, prescriptions, and absolutely anything and everything insurance-related. Your broker exists to help you navigate the industry and make informed decisions about your health and finances. Their help shouldnât end after the papers are signed.
Can brokers help with both individual and group health plans?
Yes. Health insurance brokers are usually very well-versed in many different types of insurance, including individual health and group health plans. Whether you shop for yourself, a family, or a group of employees, a good broker will present you with plan options hand-tailored to meet your needs.
How well do brokers know the current health insurance market?
Health insurance brokers benefit greatly from keeping a close eye on the market. The more knowledgeable they are, the more fluidly theyâll be able to help a diverse array of people find solutions to potentially life-threatening problems. A quality broker understands that their job security revolves around having a robust and flexible understanding of all the plans and products on the market. In other words, a good broker can answer every question, address every concern, educate you about every upcoming change, and do so without breaking a sweat.
How often should I consult my broker about changes in my health insurance needs?
We recommend chatting with your insurance broker at least once a year. Depending on your plan, you may only have a few weeks per year to change your plan once youâve purchased it. In that case, itâs a good idea to mark on your calendar when your plan is up for renewal and have a candid conversation with your broker about how satisfied you are with your policy. From there, they can help you renew your plan or find something new. Beyond that, you should consult with your broker on an as-needed basis. Say you get married, have a baby, move to a new home, your household size changes, or experience a change in healthâall of these things are important to talk to your broker about.
Are health insurance brokers regulated?
Yes, health insurance brokers have a lot of federal and state regulations they must abide by. Noncompliance with these rulesâincluding dishonest and fraudulent practices, unseemly conduct, excessive or non-consensual marketing, etc.â can result in a brokerâs license being revoked.
How do I report a broker who I believe acted unethically?
You can submit an official complaint to your stateâs Department of Insurance by calling their service number or filing a report online. They will review your case and determine if further legal interventions are necessary. Government offices are usually open from 8 am to 5 pm, Monday through Friday. As with anything, if information has surfaced that requires urgent attention or puts you at risk of loss, contact the police and seek further legal counsel.
If you have any more questions about health insurance brokers, give us a call or write a comment below. Your question may even be the topic of our next post.
Agents
We hope that this information on health insurance brokers is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether itâs through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
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Born in and raised in Maryland, educated in Utah, and new to Texas, Cristin is a purveyor of stories from all widths and walks of life. With a bachelor’s degree in filmmaking and a staunch passion for literature, she aspires to give digital spaces a uniquely human touch.
