How Are Medicare Insurance Brokers Compensated?
Medicare provides state-sponsored health insurance plans through private companies to older individuals. Each year, millions of Americans across the country enroll in Medicare plans, but many don’t know their options. By working with a Medicare health insurance broker, which is free of charge, many individuals could find out about plans and coverage options they normally wouldn’t know about. Keep reading to learn more about brokers and how they are compensated when you work with them.
What is a Medicare Health Insurance Broker?
A Medicare Health Insurance broker is an agent who works independently to represent multiple insurance carriers. Such agents can provide you with the unbiased and direct information you need to make appropriate choices regarding your Medicare plan. When you work with a Medicare broker, you will not be pushed toward a sole insurance provider, and your broker will be able to help you understand the differences between each insurer and plan. A broker’s ultimate goal is to help you find a plan that fits your particular needs and budget. Since Medicare brokers are paid by the insurance companies they represent, you don’t have to pay anything.
What Are the Benefits of Working With a Broker?
There are numerous benefits of working with a Medicare broker, including:
•Brokers tend to have a broad understanding of the offerings and benefits of each insurance agent.
•You can re-shop for the coverage you need during each enrollment period.
•Brokers may have access to plans you can’t find anywhere else.
•Brokers can help you stay current of any policy changes or options added by insurance companies.
•You can find all the information you need in one place, instead of having to search for different policies with different insurance companies.
Simply put, talking to a broker can save you time and money, especially if you have never had to choose a Medicare plan before.
Who Pays a Medicare Broker?
Independent brokers are compensated by the insurance companies themselves. When a consumer pays a premium, the commission for their agent is already included in the figure. If you choose to enroll through an agent, the insurer will cover the commission and you will continue to receive service from that agent.
However, if you choose to enroll directly through the insurance company, the company will keep the commission and you will not have direct access to a helpful agent and their services.
The amount an agent earns will depend on the type of policy a person chooses and the contract between the agent and the insurance company. It is also possible for a Medicare broker to have different commission levels with different insurers.
Why Work With a Medicare Broker?
Brokers are knowledgeable for several reasons. Firstly, they have extensive experience helping regular people choose Medicare policies that fit their lifestyles. They help people from all backgrounds understand their Medicare options daily. Secondly, brokers must have specialized training before they can act on their own. This means you will never work with someone who is unknowledgeable about Medicare plans and coverage options.
Choosing the perfect Medicare plan can be difficult, but it doesn’t have to be when you work with Sackett & Associates Insurance Services. Contact us today to learn more about the Medicare plans in your area.