Securing health coverage seems like it would be quick and easy. But, comparing policies, understanding provider networks, and understanding what health insurance terms mean leaves many people stumped. Whether you’re an individual consumer or a small business owner, shopping for health insurance is a critical decision. That’s why many people hire a health insurance broker to help guide them on their journey.
A health insurance broker is an industry professional who helps individuals and small employers find the best health plan. Working with an insurance expert in the healthcare industry who prioritizes your unique needs is essential. But with so many brokers out there, how do you know who’s the right choice?
In this article, we’ll give you six tips to consider that will help you choose the health insurance broker for your small business or your family.
In this blog post, you’ll learn:
- What factors to consider before choosing a health insurance broker.
- What services brokers should offer small business owners and individuals.
- How you can verify an insurance broker’s qualifications.
Before a client buys a health insurance plan, a broker will review their personal and business needs as well as any risks. Then, they recommend policy options, prepare insurance quotes, and review plan details. But brokers can only do this once clients know what they want. That’s why your first step is to list what you’re looking for in a health plan.
Below are a few things small employers should consider when looking for a broker:
If you’re looking for individual insurance, consider the following:
Once you know what you want, you can search for a broker who offers what you need. Above all, it’s vital to work with a broker who can explain insurance information clearly and concisely so you know what you’re getting. A successful broker should also communicate any compliance regulations, plan changes, and important deadlines.
Brokers must have a license in their state to sell health insurance policies. They do this by typically passing a licensing exam. Most states also require a background check, fingerprints, and a set number of training hours before taking the exam. After they get their license, they typically must renew it by completing required education courses to stay compliant.
To ensure they’re a reputable broker, ask them to show you their credentials. You can also check with your state’s Department of Insurance to confirm that their license is current. Reputation websites can also give you insight into the broker’s professionalism.
An online search is the simplest way to find a health insurance broker. If brokerage firms are in your area, you can see what locals are saying by checking reviews. You can find them on their company website, Google, social media, and other platforms. However, casting a wide net may not bring the best results.
If they’re available, client testimonials may be more helpful. Online reviews may be brief interactions with a broker that provide little details. However, testimonials often come from clients who have worked with the broker for a longer period of time. They may offer you more context into what it’s like to work with them.
Client testimonials provide you with insight into the broker’s:
For a more personalized approach, you can get a referral from friends, family, or other business owners who have health insurance. A personal recommendation is the best way to find an insurance professional. You can speak to the person firsthand and find out what they liked about their experience and why they’d recommend them.
Most brokers offer their services free of charge to the client. Instead of charging you, the insurer pays them a commission rate once the broker sells you a policy. This is the case even though the broker doesn’t work for the insurance company as an employee.
But, some brokers charge small fees for their services. These could be consultation charges or in-person support fees. Some may have an extra broker fee for selling supplemental plans and benefits. While these fees aren’t common, they can happen—and you may not have budgeted for them.
Because most brokers don’t charge a fee, reading the fine print is important to ensure you’re not paying for a service you didn’t expect. This is crucial if you’re an individual or a small employer with a limited budget. In either case, you won’t want any surprise charges.
In 2023, there were 417,730 insurance brokers and agencies in the U.S1. As health insurance costs continue to rise, more brokers are becoming available. But more doesn’t always mean better. It’s vital to find a broker who is experienced enough to meet your unique needs and will work hard to keep you a happy and satisfied client.
Here are a few things to consider when looking for an experienced broker:
“For smaller companies, a broker acting as a strategic partner is key,” said Casey Heer, President of Casey Insurance Group. “They should thoroughly know your business and provide custom options to your specific risks and budget. You should also work with them annually to review policies and simplify claims. Though finding the right broker takes time upfront, their guidance and advocacy can save you money and prevent headaches down the road.”
The best perk about using a broker is that they work for you—not for an insurance company. If you know what you’re looking for, ensure they’re knowledgeable, experienced, and unbiased enough to help you meet your goals. If not, your search for the right broker must continue.
Hiring a broker shouldn’t be about getting the cheapest price for a health plan. Successful brokers work with various insurance providers. They know about different plans and services. Before deciding to work with a broker, review their services to ensure they can help you reach your goals.
An effective broker should help you find a variety of the following plans and services:
They can give you peace of mind by tailoring their services to your specific needs and drafting a robust presentation of available plans. That way, you’ll know you have access to everything you need in one place.
Brokers provide essential services. But, many small businesses can’t afford group health insurance. They also may not meet a plan’s minimum participation requirements. In this case, small employers can turn to alternative health benefits.
Many brokers are turning to alternative health benefits like HRAs to find solutions for their clients. But employers can also work directly with a benefits administrator. If you’re a small business looking for an affordable health benefits option, an HRA may be right for you.
An HRA allows employers to tax-free reimburse their employees for qualifying medical expenses. These can include individual health insurance premiums and more than 200 types of out-of-pocket expenses.
Popular HRAs include the:
If you want to learn more about HRAs, our HRA specialists are happy to help. Our HRA administration software makes it easy to set up and manage your benefits in minutes.
Putting your health insurance coverage in experienced hands helps you stay healthy long-term. Using a broker gives you access to industry knowledge, personalized plan options, and top-notch customer support to help you find your perfect policy. But, there are key factors you must consider before making your choice. Remember to look up their qualifications, experience, reviews, fees, and services before making an informed decision about the best broker for you.