I can’t tell you how many times I speak to consumers saying that they purchased health insurance but when they go to use the policy the benefits are not what was presented. Unfortunately, due to the increasing cost of healthcare insurance, it has forced consumers to find alternative options. The problem for the consumer is that most are not educated on what type of agents/businesses are available to them to purchase healthcare.

To help educate consumers I have set out to write this as an educational awareness to consumers. When you start to search for healthcare coverage you should begin here:

First, understanding what type of agents, businesses and call centers can give you the most creditable experience. We will start with agents. There are two types of agents available to you…Captive and Non-captive.

Captive agents – A captive agent is only allowed to sell you specific products for one insurer. They often must stack multiple products to build a comprehensive policy and can still only stack the products offered by the one insurer. The drawback to using this type of agent is they cannot provide you with competitive pricing.

Non-Captive Agents – A non-captive agent can work with the entire open market. They can do transparent and unbiased shopping on behalf of the consumer. This often results in the consumer finding a policy that meets their needs but also creates competitive pricing among the insurers.

Second, let us explore the types of businesses selling insurance to the consumer. Most consumers will buy their insurance via telemarketers. These are agents that either work for a call center or a small privately-owned agency.

Call Centers – A call center is a group of agents that process a large volume of calls. They can be captive and/or non captive depending on the model business approach. Due to the high volume of calls, these agents lose the ability to develop a relationship with the consumer. Typically, they will try to sell the consumer within a twenty-minute phone call. With that being said, do you think this allows the agent enough time to know your needs, explain the policy and really find you the best fit. I think not. Another thing to consider is if you have any questions or concerns about your purchase after the initial set up of policy; will they be the one to take your call or will you be passed onto another department. Some of the ways to determine if they are a call center only interested in getting you on and off the phone are, they will not explain details. They will just continue to say yes, it is covered, yes, it is just like your employer coverage and typically will not send you anything in writing until you purchase the plan. If this is what you encounter, you should hang up immediately! A reputable agent is there to work for your benefit and will not have any issue spending time with you to answer your questions.

Small privately-owned agencies – These small businesses can also be captive or non-captive agents. Most small companies’ motto is to develop a relationship with the consumer and really understand their needs.  An agent doing their due diligence in finding a policy for the consumer, will have a call that last anywhere from forty – five minutes to over an hour depending on the consumers need. They will also provide everything in writing. Furthermore, the agent will not only sell the policy, but they will continue to follow the consumer’s customer service needs. Most small businesses stay in contact with their clients to monitor any changes that occur and review current policies on a yearly basis to ensure that the coverage obtained, continues to be the consumers best option. Also, several small companies work with both under 65 and Medicare. This allows them to grow with the client as they age, and their healthcare needs evolve. In short, once you are a client the agent will want to keep you has a client for the remainder of your years.

As always thank you for reading and be on the lookout for more information!!!