If you or your family require health insurance, then an experienced health insurance or medical insurance broker may be able to lend a hand. 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. Health insurance brokers are in many respects are in great demand by people who are in a similar situation and need health insurance. 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. While a real estate agent helps the consumer find their dream home at an affordable price, in a similar vein, health insurance brokers work to find the most economical rates for health insurance for their clients. Once the insurance agent has effectively done their job, both the consumer and a representative from the insurance company sign legal documents to legitimize the transaction.
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 brokers work for are often referred to as commissions. This commission can be paid in 3 ways: it can be paid directly from the insurance company, it can be paid directly from the consumer, or even from both the health insurance company and the consumer that purchased the plan. Despite this, if the health insurance broker does their job well and you are happy with your insurance, the price paid to the broker may seem well worth the price.
Do not have fear in the quality of service you will get from a health insurance broker– as they are required to be licensed by the state that they work in and must agree as part of their terms of employment to work on behalf of the customer.