Recently, my husband and I visited with an insurance broker. Our purpose for being there was to find an affordable health insurance plan for me. My insurance broker was extremely helpful! Before I visited with her, I didn’t know much about what insurance brokers do. Here is what I have learned.
I picked up this pamphlet that was created by the National Association of Health Underwriters, (NAHU). The NAHU is a group that represents more than 100,000 licensed health insurance agents, brokers, consultants, and benefit professionals, across the United States. One of NAHU’s primary goals is to do everything they can to promote access to affordable health insurance coverage.
The pamphlet had a lot of good information about insurance brokers. It discusses what an insurance broker is, what they do, and how they are compensated. It makes everything very clear, and it is written in “plain English”, and not the types of confusing language one would find in an insurance policy.
Insurance brokers are the link between consumers and insurance companies. The insurance broker helps consumers to navigate through the perplexing experience of trying to find an affordable health insurance policy. An insurance broker is able to educate people about health insurance in general, and about specific plans. She can point out different coverage options, and cost saving measures.
All insurance brokers, and insurance agents, are licensed and regulated by state insurance departments. To become a broker or agent, a person must go through an extensive course of training, and must pass a qualifying exam. Most states require insurance brokers, and agents, to continue their education after they have passed the exam. This is a requirement of maintaining a licensed status.
An insurance broker, or insurance agent, is not a salaried employee of a particular insurance company. Instead, most will receive compensation in the form of a commission. That compensation might be a fee that comes from the insurance company that one of the broker’s clients selected. Or, it could come from a small percentage of the premium payments that will be paid by one of the broker’s clients.
Either way, the insurance broker is there to make sure the consumer’s needs are met. She isn’t going to try and convince you to apply for a health insurance plan that does not meet your needs. She is not going to try and steer you towards a specific health insurance company. The broker is on your team.
Insurance brokers can act as an advocate for a consumer. The broker can speak with insurance companies, hospitals, doctors, and government agencies about claims, services, and regulations, on behalf of her client. The insurance broker will also periodically review the health plans of her clients, in order to keep the consumer updated on coverage and limit costs.
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