While looking towards enrolling for a health insurance plan, you most definitely may have come across health insurance agents and health insurance brokers. And now you wonder if there is any difference between the two or not.
Well, there is.
But before pointing out the differences between a health insurance agent and a health insurance broker, let's first clear the air on what these terms mean.
Health Insurance Agent Vs. Broker
Health insurance agents and brokers are professional intermediaries between health insurance buyers and the company offering the insurance policy. Both parties have a legal duty to help you (the insurance buyer) to get the right coverage at the best possible price.
However, the major difference between an agent and a broker is whom they represent.
Health Insurance Agent
A health insurance agent represents the health insurance company they work for. So basically, a health insurance agent near you will typically work for only one company and thus know only about their company's insurance policy.
However, there are two types of insurance agents:
- Captive agents - these insurance agents work for only one insurer.
- Multiple carrier brokers - Also known as independent agents, multiple carrier brokers represent several insurance companies. They are called brokers for the fact that they are not tied to one company like a regular insurance agent (captive agent)
Health Insurance Broker
On the other hand, A health insurance broker represents you, the buyer. Brokers help buyers to navigate several insurers and their policies to find the best option for the buyer.
As a buyer, you can work with an agent or health insurance broker near you as both intermediaries have your best interests at heart. They also both work on commission and can execute the process from start to finish.
Key Differences between Health Insurance Agents and Brokers
Devotion
Since a health insurance agent works for a company, their aim is to sell as many policies at the best rates as possible.
A health insurance broker isn't interested in making money for any company but making their own revenue and giving their clients (buyers) the best experience. They help buyers decide on the policy that works best for them.
Personalized service
Although agents work for a company, they only attend to as many insurance buyers as they can. Hence, there is often a notably personalized service.
Brokers are typically more professional as they often work as an organization. However, a broker attending to several clients at a time may not be able to offer a very personalized service.
Insight
Agents have A-Z knowledge about their company's policies but most often do not know about other insurers'.
Since a broker isn't tied to one company, they are very familiar with the policies of several insurers so they can sift through and recommend the most favorable to the buyer.
Bargaining
Agents offer the buyer exactly what the company mandates and therefore cannot stand on the buyer's side when disputes arise.
On the other hand, brokers have profound negotiation skills and are in a better position to resolve issues on behalf of the buyer.
Should I Work with a Health Insurance Agent or Broker in Indianapolis?
Whether to work with a broker or a health insurance agent in Indianapolis is often the buyer's decision to make. If you already have a trusted company to go to, then you may not need to hire a health insurance broker. Working with the insurer's agent would do.
But if you're just getting started and want to navigate your options, it's best to get help from a health insurance broker in Indianapolis, as they'd be in the right position to compare options and recommend the best.
Note that whatever commission or extra charges you'd be paying would go directly to your broker or agent.
