I was one the people to get the letter from my health insurance company telling me my policy was getting cancelled. I went to Healthcare.gov a couple times, and had the same problems many people have had. Then I realized I bought my current policy from a broker so why not try it again.
When I talked with a broker he gave me my options. Some of the options were old style insurance and some were the newer guaranteed issue. My question with all the policies being cancelled why aren’t there more at least mentioning broker option ?
I know I sound like a broker trying to drum up business, but honestly I’m not real happy with my broker at the moment. I know I’m utimately responible for myself, but I had forgotten to ask something about my policy and when got my policy details I was a little suprised.
I had no idea that sort of thing even existed (for individuals) until my financial planner recommended one for me. Around here, regular insurance agents don’t offer health insurance, I’ve never heard a health insurance broker advertise and I get the impression that even my broker focuses on businesses and only takes individuals who are directly referred to him.
I get flyers in the mail all the time, and health insurance people advertise in the coupon mailer things here. I guess I never felt I needed that service in the past. It might make more sense now, though.
I didn’t even really realize they existed for individuals. I use one at work for our group plan. Each year she takes group and applies for insurance and a bunch of different providers and about 75% of the time we switch. It drives the employees up the wall until I tell them that they can get the same insurance and pay 30% more or the same insurance and pay 10% less. I’ve found that the rates tend to go up each year but the insurance companies usually give oddly good rates when you’re a new customer. Since we’re a small group it’s worth the hassle to bounce around a lot.
We use one for our business insurance as well.
But, like I said, I didn’t know that you could use one for individual plans. It seems like it would be more expensive then, more or less, brokering your own insurance. How’s the broker getting their cut? I suppose the idea is that they get wholesale rates from the insurance companies with the idea that the broker handles some of the workload, advertising, selling of the plans, answering the questions etc.
IANA insurance broker or in the insurance business in any way.
However, I have used insurance brokers for many years. I can’t imagine the time it would take to figure out all that stuff by myself. They really do provide a service. They are paid by getting a percentage from the company with which the policy gets written.
For years I got auto, home, and umbrella insurance through the same broker. When I had to shop for a family health plan he helped me and showed me how to get the best deal that was most appropriate for my situation. They have access to many different companies and can do the comparative shopping for you.
Whenever I had a claim, the broker had my back because I was a long time good customer. If the insurance company stalled, I called the broker and they advocated for me.
The broker provides a service. I feel like I’ve had a good broker and I have no intention of leaving. I’m sure there are lousy brokers out there.
So I will ask the same question as the OP, “why don’t more people use health insurance brokers?” If you get auto or home insurance through a broker ask them to help you with your health plan. They may be able to navigate the choppy waters for you.
Most policies are purchased through insurance agents. As to commission, the standard is around 5% of premium last I heard, although that will likely be dropping with the new medical loss ratios under health care reform.
My Wife does office work for an insurance broker, such as contacting the carriers for plan additions and suchlike. He is dropping all new health insurance work until the dust settles.