Medicare has so many components that it can be difficult for seniors to understand them all: Original Medicare, Medicare Advantage, Medicare Supplements, Parts A, B, C, and D, and Plans A, C, F, G, and N. Each option has different rules, costs, and coverage details. One small misunderstanding can lead to missing coverage and even lifelong penalties. For example, people who do not enroll in Medicare Part B when first eligible may face a late enrollment penalty that is added to their monthly premium for as long as they have Part B. Medicare Part D also has a monthly late enrollment penalty for people who go without creditable prescription drug coverage for too long.
Working with a licensed Medicare insurance broker gives you someone who understands how the pieces work together, can explain your options in plain language, compare plans based on your real-life needs, help you make informed enrollment decisions, and assist you throughout the year. Even if you like your current insurance plan, but do not have an agent, you are allowed to ask an agent to help you, and Annual Enrollment is the perfect time!
Every year, insurance agents and brokers are required to complete training and certification offered by national and local health insurance carriers before they can sell those carriers’ Medicare plans. They are also expected to be knowledgeable about new rules, regulations, and laws. Legislative changes can affect who qualifies for certain plans, and changes such as Social Security cost-of-living adjustments can affect other programs seniors use. With all this at stake, why would anyone risk going it alone when there is no additional cost for the consumer to use an agent or broker?
In many cases, Medicare agents and brokers are compensated by the insurance carrier when a client enrolls in a plan. At no time should a client be charged a separate fee by the insurance carrier or the agent. Because compensation rules vary by product and carrier, it is reasonable to ask an agent or broker how they are paid and whether they represent more than one company.
Some insurance agents are called captive agents. This means that they train on and represent one insurance company’s plans. Health insurance brokers train on multiple plans through multiple local and national carriers. Brokers typically compare quotes from multiple carriers and recommend coverage that best fits the client’s needs.
Once you decide to use an agent or broker, how do you choose the right one? Since you will be sharing confidential information, you will want to choose someone who honors your communication preferences and earns your trust. Below are a few considerations that may be helpful when deciding whom to trust with your business.
- Experience Matters: Insurance regulations and laws change frequently, and professionals with many years in business often have experience with changes and a deeper understanding of how to adapt to those changes.
- Look for Local Expertise: Choosing a local agent gives you the opportunity to meet face-to-face, which can be especially valuable when discussing complex insurance issues. Local agents are often more familiar with area provider networks, hospitals, and healthcare resources than call centers or online sales representatives. In Michigan, provider networks can vary significantly by county and by plan. A plan that includes a preferred doctor, hospital, or pharmacy in one area may not include the same providers in another, which is why local knowledge can be especially important when comparing Medicare Advantage or prescription drug options.
- Review the Reputation: Read Google reviews to hear from actual clients and visit any agents’ website and social media pages to see whether they share helpful information and have developed relationships with your local senior community. Also, look for agencies that have been accredited by the Better Business Bureau or other respected consumer organizations.
- Time Tells: All people show what is important to them by where they spend their time. Many agents and brokers can make a living by paying for leads through insurance companies; however, finding an agent who shows up at local community events, hosts activities for seniors, and volunteers in your community shows that clients mean more than just a paycheck.
In closing, a health insurance broker can serve as your personal expert to help you understand the many aspects of Medicare, compare multiple carrier plans to find the best benefits available in your area, and serve as a resource if you experience billing or other problems. There are many great insurance agents and brokers out there; it just takes a bit of research to find the right one for you. Boichot Insurance Agency invites you to review our website at boichotinsurance.com, our Google Business profile and reviews, and our social media pages. If you like what you see, consider reaching out to us at (616) 258-9182 or info@boichotinsurance.com.
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