Introduction
Much confusion arises regarding the differences between the words “Medicare agent” and “Medicare broker.” Although they seem to be used interchangeably, they do indeed have separate meanings. In this brief article I will touch on both the similarities and the differences between these two terms. Additionally, we will discuss some of the advantages and disadvantages to both. Let’s begin with discussing Medicare Agents.
Medicare Agent
A Medicare agents, strictly speaking, represent a certain insurance carrier and their Medicare plan options. There are two types of Medicare agents, captive and non-captive. A captive agent represents one insurance carrier, and that carrier alone. They are not allowed to discuss other plan options, even if it would benefit the client to hear them. These agents are very knowledgeable on the plans they represent. However, they only represent plans from one carrier, which can be a serious disadvantage.
That brings us to non-captive agents. Contractually, insurance companies allow these agents to represent multiple carriers. However, the title “non-captive” merely allows for representing multiple companies – not guarantee it. You should always ask whomever you deal with which carriers they represent. This allows for transparency with the advice you are receiving.
Now that you understand the difference between captive and non-captive agents, let’s transition to Medicare Brokers.
Medicare Broker
Medicare Brokers – agents that represent multiple plans. By definition, all medicare brokers are non-captive agents. However, this again does not guarantee they have a vast portfolio. Merely, that they represent more than one company. Again, it is imperative to ask how many and which companies any broker you speak with represents. The more options in their portfolio, the better chance you get of
The Centers for Medicare and Medicare Services (CMS) sets payment rates for Medicare Advantage sales. The purpose of this, to even the playing field, allows for more unbiased advising. With all carriers paying brokers the same amount for sales, there is less reason for an un-ethical broker to guide someone into a plan that isn’t right for them. Additionally, this allows for both smaller and larger insurance carriers to play an important role in the Medicare field.
At Great River Insurance Group, I contract with all possible carriers in order to provider the greatest portfolio of options to my clients. You can browse our selection in your zip code here.
