COMPARING INDEPENDENT MEDICARE BROKERS & CAPTIVE MEDICARE AGENTS

There are important distinctions in each case, so today's article is just a quick guide in comparing independent Medicare brokers & captive Medicare agents. If you have any questions, please reach out to me directly at mike@bradenmedicare.com, or you can contact me 24/7 via our website at www.bradenmedicare.com. 

Agents generally represent  1-2 Insurance companies, so they are only authorized to speak with people about the plans they are contracted with and authorized to sell. Some Agents only sell Medicare Advantage plans so they will never give you information or examples of Medigap/Medicare Supplement plans.  And, when it comes to Medicare Part D Plans, they are only permitted to market those plans with the individual carriers they are contracted with. With the average Medicare Beneficiary having a choice of 18-20 Medicare Part D Plans available where they live, you as a consumer are often left unaware of other plans and other options that are most often a better fit for you.

Brokers are all Independent Medicare Agents, however, they usually represent many different carriers. Here at Braden Medicare, we spend a lot of time working with the best Medicare Insurance companies in America.  In fact, we are duly licensed and contracted to market and sell Medicare Advantage plans,, Medicare Supplement plans, Medigap policies and Medicare Part D Prescription Drug plans from 34 different Insurance companies in Arizona, Nevada, Texas, Indiana, Iowa, New Jersey, North Carolina, and Florida.

Additionally, the vast majority of credible, licensed, independent brokers also can offer the best Dental, Vision, and Life insurance products giving their clients an all-in-one solution. Brokers can also assist you with ACA Plans (Obamacare), Short Term Medical plans, Hospital Indemnity plans, and Catastrophic coverage for Cancer and Strokes.

Nine times out of Ten, the material you receive in the mail or in your email shows off the Logo of a single Insurance Company, that is the company sending your information and bombarding you with information that is geared and slanted to meet their needs and only show off their own plans and products.  These companies all have Call Centers that are chock full of their own Agents, who are licensed to write Medicare Supplement Policies (Medicare Advantage Plans, Medicare Supplement policies, Medigap plans, and Medicare Part D Prescription Drug plans).  Since these are agents that only work for a single Insurance company, they are referred to as "CAPTIVE AGENTS". Captive refers to the fact that if you are a "Captive Agent" you can only sell and market plans offered by the company you work for.  which is not the best option for any consumer.  

When you receive information directly from a single company, they will only show you information on their plans, and they will be increasingly persistent because they do not make money if you look at or investigate other companies.  They only make money if they sell you one of their plans, putting you, the consumer at a distinct disadvantage.

Across the country, Medicare Beneficiaries will have 44-46 Medicare Advantage plans to choose from where they live.  And if your prospective agent only works for a single company, you are not able to have access to any of those other 30 or more plans.  

99% of Captive Agents do not sell Medicare Supplement or Medigap plans.  Do you know why?  The biggest reason is money.  You see, Medicare Advantage plans pay nearly twice the amount for commissions as Medicare Supplement or Medigap policies pay.  Why? #1 Greed, #2 because the United States Government subsidizes these Medicare Advantage plans for $1,000 per month for each Medicare Beneficiary they have enrolled in their plans.  And, this is why they have money to offer extra benefits like, Dental, Vision, Hearing, or Gym Memberships to people who choose to receive their Medicare Benefits from Medicare Part C plans instead of Original or Traditional Medicare.

There are some semi-independent Agents out there.  I say this, because many Agents may not work in an Insurance Company's building, they may be sort of a Free Agent, but typically, they only work for one or two insurance carriers at the most.  Typically, these Agents only have a Landing Page, they do not own and have not built a website.  Their landing page typically shows an image of them, perhaps a few logos, but there is no substance, no Medicare information, No Blog, No Articles, No BBB Accreditation, and no in-depth information about any part of Medicare. 

Because there are no costs to you to work with a licensed agent or even better with an Independent, licensed Medicare broker, it makes good common sense to work with one.  They will not charge you for their time or their expertise.  They can assist you with answering your questions, helping you understand the intricacies, and nuances of Medicare while helping you avoid common pitfalls that can lead to being penalized by Medicare if you do not meet the Medicare Enrollment guidelines in a timely fashion.  

View your broker as your spirit guide.  They are a wonderful resource, full of knowledge and they have a genuine desire to teach and inform others.  Brokers should ask what you are looking for in a Healthcare plan.  What things are most important to you? Many clients want the ability to choose their doctors and hospitals, they do not like the idea of networks and they detest wasting time having to make an appointment and be charged by their appointed Primary Care Provider just to see a specialist or get a second opinion.  Others want the best coverage and comprehensive healthcare.  Many people are enchanted by the "Glittery and Shiny Extras" promised by most  Medicare Advantage companies.  

In my experience, to be an excellent broker, you have to be SERVICE ORIENTED, you have to LISTEN FIRST, you need to present options, ANSWER every question from you, the client and NEVER make a decision for them.  Brokers should, in my opinion; be humble, kind, attentive, intuitive caring, empathetic, intelligent, well-trained, and approachable.  You should know that you can ask your Broker anything about any topic and know they will shoot straight.  

By having the most options, Brokers can offer their clients the most choices of Medicare plans to choose from. And, while it is true that having too many choices laid out in front of you at one time can be overwhelming, remember that having the most options makes it easier for you to choose the best type of Medicare Insurance for not just you, but for your family.  Children and Grandchildren will always want the best for their parents.  They want to know you are protected, they want the best for you because you have always done your best for them.  Just because you are entering retirement, does not mean you need to settle for substandard coverage or overpay for things you do not need or will not use.  

At Braden Medicare and Braden MSI Insurance, we were raised to treat anyone we meet just like we treat our friends, and we were raised and are very proud that we treat all of our friends like family.  

Medicare Agents and Medicare Brokers are all compensated by the Insurance companies.  There are pre-set, pre-determined commission rates and structures that are approved by every State Insurance Department across the United States.  So, the licensed Agent who submits your application gets paid a commission from whichever Insurance company you choose to partner with.  

As we stated earlier in this article, Medicare Advantage plans pay about double the commission paid for a Medicare Supplement or Medigap plan/policy. Throughout the year, different companies offer trips and other incentives for agents to push their company's Medicare policies over others.  And, many agents and even a few brokers can be swayed to lead with those plans because they would love to go to Europe, or wherever else a company is offering if they meet their quotas.  

Everyone usually knows someone who already has Medicare.  These people can be co-workers, friends, neighbors, and family members. Ask these people what they did, and ask them if they used a Broker or an Agent.  Ask them how their experience was.  Then, file that away and get to work locating Licensed Independent Medicare Brokers in your area. 

I think the most trusted way to do this is to google your local Better Business Bureau Website and search For Medicare Brokers and Medicare Agents. You can search for Medicare Brokers and then, look for "Accredited" Medicare Brokers first.  These businesses have been verified as legitimate, have been in operation for years, have no complaints registered against them, they have their own website, full of excellent information about Medicare.

Other things you can do are as simple as performing a search on Bing, Google, Safari, or Firefox.  Simply type in the following phrases and click the search button.

"Medicare Brokers Close To Me"

"Local Medicare Brokers"

"Licensed, Independent Medicare Brokers"

"Medicare Advisors Near Me"

"Medicare Brokers Near Me"

"Best Medicare Brokers"

"Independent Medicare Agents"

Once you have found 2-3 Licensed, Independent Medicare Brokers, spend some time viewing and navigating their website.  Here are some things to look for that we believe are most important:

• Is their website organized?
• Is there a Lot Of Pertinent information regarding Medicare?
• Is there a contact form on the website?
• Are they Members of the BBB?  Look for the BBB Seal, and especially look for a BBB Seal that says A BBB Accredited Business!
• Are there clearly defined Sections that explain Medicare Supplements and Medigap Plans, Medicare Advantage and Medicare Part C Plans, and Medicare Part D Prescription Drug Plans?
• Look for and read the "About Us" Section if they have one listed"
• Are the dates on the Header/Footer of the web pages current?
• Look for a Mission Statement, many times this is an excellent barometer to gauge if your values are aligned with theirs.

After you have completed your review of their website, email and/or call them.  leave your name and contact information and simply say you are in the process of looking for information and help with Medicare and understanding what choices and options you have. Judge how long it takes for them to return your call or reply to your email.  Then, simply have a pleasant conversation with them.  You should interview them just like you would anyone else who might be presenting a bid to you for their services.  Be yourself and after you have contacted at least 2-3 companies, let your brain and your gut guide you to which company you think you would be comfortable working with and who you feel you can trust to be open, warm, genuine, caring and who has the heart of a teacher.

I know we have covered a lot of information and I truly hope you found this article, poignant, timely, interesting, and most of all helpful to you.  Please feel free to contact me directly at mike@bradenmedicare.com or anytime at (480) 771-8181. I would be honored to speak with you and answer any questions you may have and I will also help to get you moving in the right direction. There is never any obligation to work with us, and you will never feel pressured.  We simply offer our help and promise to listen to your needs and concerns and answer any questions honestly.