Medicare Agents vs Brokers: Pros, Cons, & How To Choose

When you contact us, our agents will provide you with industry-leading education to help you make an informed decision on which Medicare plans are suitable for you. Many seniors enrolled in Medicare find that they save money and enroll in a better plan when using the help of a licensed agent. Some independent agents prefer not to work through someone else's platform.

The chief differences may be something you should consider when making a decision on which professional to choose. Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more. When adopting an advantage plan, all healthcare charges are billed through the selected provider and not directly through Medicare.

Every day, 11,000 baby boomers turn 65 and age into Medicare. Just in 2021 alone, 26 million people enrolled in a Medicare Advantage plan, and that number is expected to dramatically grow. By 2035, there will be almost 80 million people aged 65 years or older. Choosing benefit structure, for example, 1) traditional Medicare combined with a Part D prescription drug plan and Medicare Supplement plan versus 2) a Medicare Advantage private plan. You should ask if the broker or agent will review all plans available where you live — or if they will limit their review to a small selection of plans. There are some differences between how a captive agent, independent agent and broker function.

There are several advocacy organizations, as well as State Health Insurance Assistance Programs, educating people about the entire range of issues facing Medicare beneficiaries. Enhancing these resources, which have no financial stake in plan decisions, is crucial in the existing model where beneficiaries are asked to make consequential trade-offs with imperfect information. Create a medicare agent marketplace with a performance rating for agents. This could be managed at the state level or federal level but should be standardized across states given that agents may operate in more than one geographic area.

Then, compare it to similar plans, especially if you're new to the business and don't have existing clients with real-life budgets. It will list everything you need to know about your partnership with the carrier, including product requirements and how you'll receive payment for your sales and renewals. Once you submit contracting paperwork with a carrier, expect processing and background checks to take about seven to 10 business days. Keep in mind that turnaround time can take anywhere from four to six weeks if open enrollment is approaching. As with carrier contracting, you can gain a competitive advantage by completing your AHIP and FWA training early. This way, you won't have to spend time working through these courses as the open enrollment period approaches.

The information you will be accessing is provided by another organization or vendor. We met with three leaders with active experience in advocating for patient protections in Medicare. We used descriptive statistics to understand what share of search results originate with different interests and organizations. We compared results against the equivalent search on Medicare.gov. Based on this analysis, two initial areas of investment could improve the decision-making experience for beneficiaries within the constraints of the existing model.

When comparing Medicare agents and brokers, it’s important to understand the two different types of agents as well — independent agents and captive agents. Once you make your choice, the broker turns you over to the insurance company or one of its agents to complete the deal. Brokers work as an intermediary between you and insurance companies.