Todays posting by Debbie at American Consumer News brought to mind the subject of whether you should use an agent/broker when buying health insurance. While I have to agree that the sales part of an agent/broker is going to lead them to consider suggesting higher commission products, I don’t think that anyone should go directly to an insurer to buy their health insurance. This is because you are still buying it from an agent, albeit one that is employed at the insurer. I spoke with someone just today who had gone directly to the insurer and had many months of trouble due to underwriting trouble with an application and continues to pay a higher rate to this day.
We all know that it is better to buy from an independent agent that can provide a variety of products. It doesn’t cost anything extra to use their services, and there are distinct advantages. First of all, if they represent more than one insurer, they can suggest different insurers for different people’s needs. Whether this is specific offerings, or more importantly specific underwriting practices, the consumer benefits. If there are claims problems, a decent agent can also get involved and help resolve issues. Which brings up the need to get a good agent working for you. I have an article about how to find a good health insurance agent at my website, which you must read. I also have links to state health insurance resources, and sources for getting internet health insurance quotes.
So if you can find a decent agent, you can still use the internet to explore your options. You can make the application through an agent (yes, eHealthInsurance is an agency employing licensed agents) and get some feedback and recommendations specific to your medical history and the underwriting practices of the insurers. In some states (Maine, Massachusetts, New Jersey, New York, and Vermont in particular) you don’t pay a different rate depending on your medical history: everybody pays nearly the same rate, so you just need to make sure that you get health insurance from a licensed insurer, again preferably through a good agent.
Jonathan Pletzke is a consumer expert on health insurance and author of the health insurance book Get a Good Deal on Your Health Insurance Without Getting Ripped-Off, available online and at bookstores nationally. Additional details can be found at the health insurance book website www.BestHealthInsuranceBook.com.
Jonathan Pletzke is a consumer expert on health insurance and author of the health insurance book Get a Good Deal on Your Health Insurance Without Getting Ripped-Off, available online and at bookstores nationally. Additional details can be found at the consumers health insurance book and resources website www.BestHealthInsuranceBook.com. Copyright 2007-2008 Aji Publishing.
Tags: Health Insurance · health insurance agent · Health Insurance Book · internet health insurance2 Comments
2 responses so far ↓
I’d ask friends who their agent is… that’s the best way to get a good one. Flipping through a phone book may land you with an agent who just wants to sell you the most expensive plan because all they care about is commission.
People should ALWAYS use a reputable broker when buying individual health insurance. The “do it yourselfer” is too close to the situation emotionally, as well as ignorant of underwriting issues. Just this week I had a call from a gentleman who had been turned down by Blue Cross. Of course he thought his health condition was “no big deal”. Now his declination is in the MIB - and he’s screwed. I could have told him not to submit the application to them!
Look for a broker with at least five years experience who works with multiple insurance carriers.
PS-Not all brokers are looking to sell the highest cost policy. Some of us have the integrity to do the right thing for the client.