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How & Why to Use an Independent Health Insurance Broker

Obtaining good health insurance coverage for an affordable price presents a formidable challenge. Not only is the vocabulary difficult to understand, but it varies between states. To further complicate the subject there are LOTS of people and websites willing to advise you and sell you a policy. So how does one decide on a policy to protect family or business?.

For those that are not covered by an employer sponsored plan many financial advisers recommend the use of an independent broker. Independent brokers are licensed in the state for which they are selling an insurance product. First, an explanation; insurance producers are generally of two types 1) captive agents and 2) brokers. A captive agent is licensed by the state(s) that he or she sells in for the company that they represent. Brokers also hold licensure in the state for which he or she sells, BUT the broker represents many companies. The broker or independent broker shops among many companies to find the insurance product that meets your objectives for the best price. Agents work for the company for which they sell and brokers work for their clients.

How can I find and independent broker to find coverage for my family or small business?

This is not such and easy question, but there are some rules that will help you on your way:

1. Ask what companies the insurance producer represents. If the provider tells you that they broker for a certain company only then you need to continue your search.
2. Tell your broker what you need and then listen to the answers. Can you understand what your suggested coverage is? Can you find all of the promises that the broker made in writing? If your broker cannot adequately explain the policy coverage to you or seems allusive or over complicates things; keep looking!
3. Contact your state commissioner of insurance and request recommendations for independent brokers, particularly brokers with a large “book of business.” A large book of business provides a good indication that the broker provides a good user experience and the he or she has experience. Another good resource is the National Association of Health Underwriters
4. Use large online services such as ehealthinsurance.com to get ideas about what coverage and prices are available, but you would do well to stay with a local independent broker to purchase your insurance.

   Why?

Health insurers (the company that actually underwrites the policy) provide varying levels of service in your particular area. Brokers also often know for example that certain insurers may or may not be raising their rates in a time frame. After finding the right broker you’ll have a professional in your corner that will provide you with years of hassle free coverage.

It costs you nothing to consult with and get a quote from a broker with years of experience and a proven record of serving customers. Let MyCaliforniaHealthinsurance.com help you protect your family or small business while saving you money.