HEALTH INSURANCE BROKER: What They Do, the Best & Difference

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So, you are on the hunt for coverage as an individual or you are a company owner trying to find the best healthcare choice for your employees. Choosing an appropriate broker can help you save time and money while looking for health insurance. Brokers employ qualified, credentialed individuals who are well-versed in health insurance and who have established rapport with local entrepreneurs, single people, and families. Health insurance brokers streamline the purchasing process and help you quickly zero in on the most suitable plan. However, there are some considerations and expectations you should have when working with a broker to acquire individual health insurance. In other to find the ideal solution for their client’s demands and budgets, brokers help them weigh their options. So what can a health insurance broker do for your group or small business and what is the average salary they get? 

Well, let’s find out….


Brokers can be found in a wide variety of industries, including insurance, banking, property sales, and more. Health insurance brokers, on the other hand, are a different breed entirely. Their responsibility is to inform and guide you when you choose a plan, with the goal of reducing your risk and maximizing your savings. They generally base their decision on your qualifications, which may include a solid network, reasonable pricing, or anything else. As their sole focus is satisfying your needs, they can work with any provider or design whatever package they like. Insurance brokers are primarily non-affiliated businesses that represent several different insurance providers, albeit operating for a commission.

While a health insurance license is the primary need for working in the industry, many brokers have additional certifications and degrees. As this is the case, you can trust them to help you navigate the health insurance system. They, like instructors, are governed by state insurance authorities and need to complete CEUs to keep their licenses active. To sum up, it’s safe to work with a certified broker.

What is a Health Insurance Broker?

A health insurance broker is a licensed expert who may assist you in locating a suitable health insurance policy by evaluating your needs and the needs of multiple insurance providers. A health insurance broker may be of assistance if you are uncertain about which health insurance plan to select from the government insurance marketplace or private providers.

There is a special place in the health care system for health insurance brokers to fill. They act as a go-between for their clients and insurance providers (or “carriers”), advising them and giving them information about available policies and tailored recommendations. Brokers receive their income from commissions from carriers rather than directly from their clients and are required to obtain a license from the state in which they work.

Who Should Use a Health Insurance Broker?

Those who don’t have access to group health insurance through their employers often turn to brokers to help them find coverage. A small business that provides a group plan for its employees may also benefit from a health insurance broker. This is probably so as they may not have the manpower or funds to handle insurance matters thoroughly on their own.

Brokers work with people who use the nationally and state-run Marketplace exchanges, providing information about public services, insurance tax credits, and perhaps other government-based cost-saving solutions. They can also point buyers toward off-exchange plans that adhere to the Affordable Care Act.

What Exactly Does a Health Insurance Broker Do?

A health insurance broker is a certified benefits specialist who may assist people and organizations with managing the entire health insurance decision process. Although some individuals prefer to do their own plan alternatives research, others find the process of purchasing health insurance to be overwhelming and could benefit from expert advice. Insurance brokers can also assist small businesses in sorting through the choices to locate a healthcare plan that fits their demands and financial constraints.

Health Insurance Broker for a Small Business

One of the various options for finding, getting quotes from, and obtaining health plan coverage for your employees is through a small business insurance broker. Brokers can help you navigate the policies offered by various insurance providers because they are often specialists with specific training.

You can compare the advantages, costs, and extra features of each plan with the assistance of a broker. A health insurance broker helps you determine plans as per the needs of a consumer or business after analyzing their current situation. They also work together with clients to provide them with appropriate risk management information

Furthermore, they focus on keeping up with current changes in the insurance industry and broadening your product and service expertise to comply with all insurance contract criteria

As you can see, a small business insurance broker can help you locate a health plan choice that is appropriate for your personnel based on the particular needs and traits of your company. Plus, you might not pay anything directly for this service.

Working with a broker who can guide you through the difficult jargon and other complexities of the health insurance business could help you save a lot of time. In some cases, they might even assist you with administrative tasks.

Now that you know what a health insurance broker can do for your small business, let’s dig in more.

How Does Small Business Health Insurance Work?

A small firm is one with less than 50 full-time employees (FTE), according to the Affordable Care Act (ACA), while other states have their own definitions. For instance, California defines small enterprises as those that employ no more than 100 FTE. Although it is not compulsory by law for small business owners to offer health insurance to their employees, there are guidelines for those who do.

A small business owner signs up for a group health insurance plan provided by a private insurance provider and then provides their staff with the option to do the same. Employees are often liable for their deductibles, copays, and any services not included in the plan, while the employer contributes to a portion of their monthly premiums.

When Does a Small Business Have to Offer Health Insurance?

Unlike larger companies, small businesses are not compelled to offer health insurance to their workers. Therefore, before deciding to give health insurance to your employees, you should research how your state classifies small businesses.

Are Insurance Brokers Worth It?

It is time, money, and stress-free to work with an insurance broker. A broker can assist you in determining your insurance needs and then procure the appropriate policy from the market.

Additionally, a broker can shop around for the most affordable and comprehensive policy from a number of different insurers. They’ll look at your unique situation and give you unbiased advice that’s in your best interest, not the insurance companies.

Is Being an Insurance Broker Profitable?

The earning potential is significant for insurance brokers because many of them are commission-based employees. Your earning potential is based on your work ethic as well as your readiness to network in order to develop relationships with customers and offer them insurance.

What Is the Role of an Insurance Broker?

An insurance broker is basically a specialist who serves as a liaison between a customer and an insurance provider, assisting the latter in locating the plan that best meets their requirements. Insurance brokers however cannot bind policy on behalf of the policyholder because they represent individuals, not insurance companies.

What Are the Disadvantages of Insurance Brokers?

The insurance brokers occasionally could act unprofessionally. They could for instance pretend to be experts in order to con people out of money. Even worse, they can use a false license or work without a current license. Hence, before using an intermediary service, one must request a license.

What Type of Insurance Broker Makes the Most Money?

Although there are many different types of insurance; ranging from health insurance to auto insurance, nevertheless, selling life insurance is the most lucrative profession in the insurance industry.

Group Health Insurance Broker

Have you noticed that the cost of your company’s group health plan keeps going up? How satisfied are you and your staff with your existing insurance? When did you last do some comparison shopping?

Perhaps it’s time to consider shopping around for better coverage and pricing for both you and your staff. Besides, everyone needs employer contribution discounts and overall lower costs. Another important factor is employee involvement, and a group health insurance broker may provide the solution your employees seek. A group health insurance broker help guarantee that each person receives the plan that best meets their needs. The good news is, they help you conduct the research at no expense to you. Generally, they focus on customers making confident and pleased decisions.

How Realistic is it for a Group Health Insurance Broker to Help a Small Business Save Money?

Basically, it might be tough to locate cost-effective options for your small-group clients as a group health insurance broker. Besides, most health insurance programs were not created with small businesses in mind.

Fully financed health plans, which are the bread and butter of major insurance companies, have traditionally skewed toward large organizations. When compared to major corporations, small firms pay 8-18% more for health insurance rates. This is due to their inability to compete with larger companies and their population sizes being too small to spread risks evenly. Moreover, the more people working for a company, the more money they bring in and the less risk the insurance companies face.

These are three ways in which a group health insurance broker can help a small business save cash;

  • Assist your small business clients in finding a health insurance plan that would pay their providers at a fair rate.
  • Connect small business clients to value-based payment models as opposed to fee-for-service ones.
  • Point small group members toward level-funded health insurance.

Best Group Health Insurance Brokers

Below are the top 15 group health insurance brokers as of march 2023;

  • Marsh McLennan
  • Aon
  • Willis Towers Watson
  • Acrisure LLC
  • Lockton
  • Alliant Insurance Services 
  • NFP
  • Truist Insurance Holdings Inc.
  • Hilb Group
  • Hylant Group
  • CBIZ
  • IMA Financial Group
  • OneDigital
  • Woodruff-Sawyer & Co.
  • Mercer

Health Insurance Broker Salary

In the US, a health insurance broker has an average salary of $171,051. An average health insurance broker receives a bonus of $2,000 annually, or 1% of their compensation, according to 100% of those surveyed. San Francisco has the highest average total income for health insurance brokers at $254,070, which is 49% higher than the national average.

What are the Salary Ranges for a Health Insurance Broker

The wages of health insurance brokers in the United States can range anywhere from $32,203 to $739,134, with a median compensation of $156,713. Generally, in the US, the minimum salary for this job is $32,203. The top 57% of Health Insurance Brokers make between $739,134 and $156,713, with the top 86% making $350,626 and $739,134 respectively.

How to Sell Health Insurance?

Generally, you can’t just start selling health insurance because you want to. There are some prerequisites that you need to meet first. You must sign agreements, register, and go through the necessary training before you can start selling health insurance plans through the federal Health Insurance Marketplace®. The 5 basic steps are;

  • Creating an account and setting up a profile
  • Confirm your status as a broker or agent
  • Confirm your identity
  • Take the necessary training
  • Go on and put your signature on the necessary confidentiality and security agreements.

What Is the Difference Between Insurance Agent and Insurance Broker?

A health insurance broker’s job is similar to that of a health insurance agent, but there are key differences. In most cases, agents work exclusively with one insurance provider, limiting their recommendations to the policies offered by that firm. Meanwhile, brokers stand in for the client. They have a legal responsibility to help customers in many states choose the best plan for their needs, regardless of the insurance provider.

What Services Do Insurance Brokers Offer?

Services a health insurance broker can offer a small business or a group include;

  • Protecting your interests in insurance claims and disputes
  • Helping get insurance companies to pay up when a loss is too large for their excess policies
  • Communicating with the insurance industry, claims departments, and risk information databases
  • Depending on your requirement,  providing risk management and claims advocacy services.


If you are a small business owner, an insurance broker can act as a go-between for you and potential health insurance providers to find coverage that meets your needs. Obtaining health insurance doesn’t need any sort of blind faith. A health insurance broker will provide you with a variety of plans and also help you navigate the process at no additional cost.

Furthermore, a broker’s expert opinion could help you discover a more suitable policy. Besides, finding the finest health insurance plan at a reasonable price will help you avoid financial hardship in the event of a medical emergency and make receiving treatment more convenient.

However, getting the best health insurance can be challenging. But regardless, a health insurance broker acts as a liaison between small business owners like you and health insurers, assisting you in finding the health insurance provider or plan that is most appropriate for your requirements.


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