Health Insurance Broker

What Is a Health Insurance Broker?

Simply stated, a health insurance broker is someone who helps you to review and purchase health insurance. Independent health insurance brokers sell a variety of plans from a number of companies. Other brokers work on behalf of a company and only represent that company’s plans. Payment for the services of a health insurance broker are covered either in commissions from the health insurance company or in fees contained in the premiums charged to you as the customer. While many brokers work with individuals, they can also work on behalf of companies and often work with small businesses of 1 - 50 employees. Commissions for services of a health insurance broker range from 2 -8%. Some states such as New York and New Jersey have placed limits on the level of commissions which can be paid to a health insurance broker.

What Should I Know About Buying Coverage from a Health Insurance Broker?

First, learn if your health insurance broker is licensed in your state. Licensed brokers have met educational standards, passed criminal background checks and are bonded. The National Association of Health Underwriters can put you in touch with licensed brokers in your area. Second, do some of your own research. Get at least three quotes before making a decision. Quotes can be obtained from brokers, online or directly from health insurance companies. In some situations, a health insurance broker may not attempt to sell you a particular plan because the commission rate is so low that it is unattractive to the broker. Getting to know why a health insurance broker suggests certain plans or discourages other plans is critical.The amount of time you spend in research will determine whether your health and your wallet will benefit or suffer.

Going It Alone and Bypassing the Health Insurance Broker

If you decide to purchase health insurance directly from a company to save on the health insurance broker commission, then you need to do some additional research. Visit your state insurance commissioner's website to learn which companies sell individual coverage without requiring you to go through a health insurance broker. You should always check to see what if any complaints might have been filed against a particular company. Health insurance brokers sometimes don't represent certain companies simply because they know about their unethical practices or financial problems. It will take some effort to gather all this information but if it's worth the savings in money then you might want to purchase directly. If you're willing to spend a bit of extra money for someone else to do the research and come back with suggested policies, quotes and company information then a health insurance broker is perhaps the best avenue for you. Like so many things in life, it all boils down to time and money -- and how to make the best use of both.

Health Insurance Nexus | US : The US Health Insurance Resource, conceptualized in Dec, 2004, is an online portal which provides up-to-date, pertinent information about health insurance in US.