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Health Insurance Broker

Professional health insurance brokers offer the expertise that can help find the best health insurance for your business and guide you toward the right picks. These persons are licensed experts who:

• Know the market. They can differentiate the best products from the merely adequate.
• Know the law. They are competent in the state and federal regulations that can expose your business to severe liabilities.
• Know the industry.They have satisfied licensing requirements, which necessitate them to keep up-to-date on the insurance market.

Brokers Versus Agents

When we say “broker,” we mean an expert who can direct you to products offered by a range of companies. This is in contrast to a health insurance agent who works with only one carrier and promotes its health insurance policies. Technically, both of these kinds of professionals are licensed as insurance “agents,” but we distinguish between them based on common parlance. If you don’t use a broker, you will likely work with an agent at each company you contact.

What Does a Health Insurance Broker Do?

Your broker will assist you:

• Shop for the right plan(s) for you, and offer you with one or more premium quotes.
• Discuss alternatives with you so that you have a clear understanding of your health insurance options.
• Implement the plan you choose.
• Service the account, as well as solving problems with billing, eligibility, and claims.
• Ease the burden on your time by performing the “legwork” for you.
• Get the most from your insurance plan after you’ve bought it.
• Help with the renewal process.

Broker Commissions and Fees

Brokers earn a basic commission for their services and sometimes charge additional fees as well. Commissions are basically based on a percentage of the annual premium and comprise the premium you pay. In other words, a broker’s basic commission is built into the insurer’s rates, so everybody pays them whether they use a broker or not. Fees, on the other hand, maybe charged for certain additional services. You’ll want to ensure you know what costs will be charged when working with a broker. Additional fees are generally paid directly to the broker.

Finding and Selecting a Broker

You can find the best health insurance broker in your community in many ways:

• Contact associations that deal with health insurance or small business. Usually, they can direct you to brokers. Your state and local association of health underwriters or chamber of commerce are just two examples.
• Ask trusted advisors, like your accountant or attorney.
• Check with other business owners regarding their experiences.
• Check for health insurance brokers online.

When deciding on whether to use a certain broker, ensure you keep the following in mind:

• Ask about the dollar amount of any charges or commissions that you will be charged and ask if any separate fees will be added to the agent/broker’s premium.
• Clarify the services that you will get. For instance, some will assist you in explaining the plan to your employees; others will not.
• Bear in mind that an agent or broker becomes an extension of your staff. How well does this individual work with your staff on a day-to-day basis?
• Discuss how the health insurance agent or broker will assist you during the year. Will your representative be your primary contact, or is another individual responsible for servicing your health insurance plan?

Resources and References:

• Role of Health Insurance Brokers
• Tips on Selecting a Health Insurance Broker