If the idea of buying health insurance for you or your family sounds confusing, enlisting the help of a health insurance or medical insurance broker might be a safe bet. What is a health insurance broker? In simple terms, a health insurance broker is someone who helps connect people looking to purchase insurance with health insurance companies. For many people like yourself who are looking for health insurance or group insurance plans, health insurance brokers are a popular option. Although health insurance is used by a variety of people, they are often used by those who are self-employed (and do not have access to employer-based insurance) and those with pre-existing conditions– as these two groups may face more challenges when looking for health insurance.
Interestingly, a health insurance broker shares many of the job tasks of a realtor. For example, just as a real estate agent works to find the best house at the best price, insurance company brokers look for the best insurance rates for their consumers. As soon as the health insurance broker is successful in their task, both the insurance company and the customer sign documents to legalize the health insurance purchase.
To many, health insurance brokers seem to only be on the side of the health insurance companies. This however, could not be less true, as health insurance brokers work to benefit the customer. Above all, one of the primary roles of a health insurance broker is to be knowledgeable of the health insurance companies available– and of those insurance companies, which ones are right for the consumer. Even more, health insurance brokers are also helpful in more ways regarding your health insurance plan. Health insurance brokers will be able to provide information on premiums, deductibles and co-pays and much more. It is even possible that your insurance broker may be paid a small sum for referring consumers– only in the event that the customer actually signs up for the service.
These payments that the health insurance broker receives are referred to as commissions. Health insurance brokers can receive the payment is a number of ways: the insurance company pays the commission, the customer themselves pay this fee, or even in some cases both the insurance company and the customer each paying towards the health broker’s commission. This fee can seem like a well-earned fee, especially if the end result is the customer being happy with their healthcare insurance.
Health insurance brokers are required to be licensed, so fear not– they are on your side.