Medicare and its numerous plans can be quite confusing.
This is where Medicare agents and brokers come in.
There are two kinds of Medicare insurance agents.
Terry Vine / DigitalVision / Getty Images
The first is the independent Medicare agent.
The second kind is the captive Medicare agent.
AMedicare insurance brokeris quite similar to an independent Medicare agent.
They’re not bound to just one insurer.
They can educate you about and enroll you in plans from different insurance companies.
They have some advantages over captive agents.
First, you’ll have to choose whether you want Original Medicare or Medicare Advantage.
This is your annual opportunity to reevaluate your coverage needs and switch plans if necessary.
In most states, however, there is no annual opportunity to switch Medigap plans withoutmedical underwriting.
How Can a Medicare Broker or Agent Help You?
Medicare agents and brokers are very knowledgeable about Medicare plans.
A Medicare agent or broker can help you streamline your options and eventually settle on one.
Once you make a decision, the agent will enroll you in the plan.
If it doesn’t, they can present you with options to choose from and help you change plans.
After that, there are limited guaranteed-issue rights for Medigap plans, triggered by various qualifying life events.
An underwriter will assess your current state of health, and use that to determine the plan’s premium.
This can help you save time and get a better understanding of what your realistic coverage options are.
Is There a Fee for Agents and Brokers?
You don’t pay any fee for the assistance of a Medicare agent or broker.
Using their services is completely free.
Their compensation depends on the kind of agent or broker they are.
Some agents are employed directly by the insurance companies they represent.
In contrast, others merely have contracts based on enrollments they make.
Most agents get paid by commission.
These commissions continue to be paid to the agent for as long as the person remains on the plan.
The commission they receive for enrolling someone in a plan is not fixed.
(Subsequent-year commissions are lower than first-year commissions.
These insurance professionals are licensed by the state insurance department, and also complete ongoing Medicare training and certification.
But others are independent agents or brokers, meaning they can show you plans from multiple insurers.
Centers for Medicare and Medicaid Services.Agent broker compensation.
Centers for Medicare & Medicaid Services.Agent Broker Compensation.
Ritter Insurance Marketing.2025 Maximum Broker Commissions for Medicare Advantage & Medicare Part D. July 22, 2024.
