The price of health insurance is fixed and regulated by the Division of Insurance in each state. This means that a particular plan sold by a carrier will cost exactly the same for everyone that falls into that catagory. The price of health insurance is based on the individual's gender, age, and the location in which they resided. Now, don't get me wrong, the price can be adjusted based on pre-existing conditions or prescription requirements, etc.
A health insurance broker is used to assist in the plan selection and application process. For example, if you were buying a house, you would use a realtor to help you find the best house for your circumstance. A health insurance broker is just like a realtor. They are more familiar with the insurance carriers, the products they sale, and any terms and conditions that the insurance carrier might have.
The broker is compensated by the insurance carrier based on the number of customers they sign up with that carrier. The customer should not have to pay for any broker services or application fees in less otherwise specified. A health insurance broker should be there to give you a third party perspective regardless of what carrier you decide to go with.
In these tough times, most insurance carriers have outsourced their sales department to local brokers in the customer's area. So, even when you contact the insurance carrier directly, they are probably just turn around and give your name and number to broker in the area (to contact you).
A broker can also help even after the policy is in place. If you have a billing or claims issue, a broker should be able to assist or at least point you in the right direction in terms of how to take care of it (a telephone number). Dealing with the insurance carriers directly can sometimes be overwhelming. If you have a serious issue, you want to know that someone is on your side and fighting for your rights. At Gizmo Health, www.GizmoHealth.com we are on your side!
