A Medicare broker is an advisor who has knowledge about Medicare’s plans and options. Brokers sell plans from different insurance companies and can help you enroll in plans that best suit your budget and needs. There are trained to inform you what are your options for coverage based on your preferences and needs, ultimately helping you to find the right plan. Brokers are also known as independent agents who are paid by the insurance companies they are representing. You don’t have to pay any extra fees if you choose to work with a broker because their commission is included in the beneficiaries’ premium. However, brokers are not the only ones that are considered Medicare advisors, Medicare agents are also experienced to sell Medicare coverage.
What Medicare Brokers Are Selling?
Medicare brokers don’t sell Original Medicare- Parts A and B. However, they are selling private Medicare plans like Medicare Advantage, Medicare supplement plans, and Part D options (drug coverage), which are sold by private insurance companies. They help beneficiaries in searching and applying for the best Medicare plans, and after the research is done, they recommend you a plan which is the best fit for them.
However, they can’t directly enroll you in a specific plan, so once beneficiaries choose a specific plan, brokers must turn you over to Medicare agents and complete the agreement.
Benefits Of Working With A Medicare Broker
First, and most important is that this fiend is regulated to protect the beneficiaries. Medicare brokers can’t make any misleading statements or false one to force you to choose a specific plan. Also, they are not allowed to bulge in your house and sell Medicare plans and options if they aren’t invited by you to do so.
There have been a lot of scams in the Medicare world, so beneficiaries should always pay attention that they are talking with a licensed broker. Always ask how long they are selling Medicare plans because experience in the Medicare world is very important. Although Medicare is subject to change every year, brokers should have knowledge about coverage changes, rate increases, benefits, and must be able to answer any additional questions you may have. Also, beneficiaries should ask them in what areas of the state they work, because plan options are not the same in every state.
Medicare brokers also can’t charge you any fee to help you in the process of your enrollment. Generally, good medicare brokers should advise you on the options that are best for you personally, regardless of whether they are selling certain plans or not. They also need to have knowledge about all state and federal laws available for people with low income. Additionally, they should look that your doctors and medications are covered in your plan.
Difference Between Medicare Brokers and Medicare Agents
Whether you work with a broker or an agent, you will not have to pay them for their assistance, service, and expertise. Agents and brokers receive compensation from the insurance company when they help clients select and enroll in one of the company’s plans.
However, there are two types of Medicare agents: captive and independent. Whilst captive agents work for one insurer and only offer plans from that specific company, independent agents work with several companies. However, both are paid directly by those companies. The only difference is that captive agent receives payment directly from the insurance company they are representing, and have a lower commission rate in comparison to independent agents. Independent agents get their salary from commissions, which can often be higher paid.
Medicare brokers receive commissions from insurance companies, but they don’t directly work for them. Their business and income don’t depend on enrolling their clients in one carrier’s plans over another. Brokers will make the same rate of commissions whether a client selects a Medicare Advantage, supplement plan, or Part D plan from insurance company C or Company D. This means their only incentive is to offer and choose the plan that is best for their client, not what’s best for themselves.
Craig W. Hansen is an insurance professional and co-founder of William & Michael Advisor Group LLC and Jersey Insurance Solutions. Craig has served his clients in many facets of the insurance industry, always with the same goal: excellence in service while building solid, long-term, lasting relationships. With over a decade of experience in the insurance benefits industry, Craig’s clients know they can call on him anytime and receive platinum service with a smile.
