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Should you use a Medicare agent or broker? My answer may surprise you

By February 18, 2021February 22nd, 2022No Comments

We recently had a comment on our Facebook page from Pat, who said,

“I signed up for Medicare in November, as my Medicare didn’t start till February. The company I went through said we were all set, but I found out last week we don’t have Medicare Part D. When I called to tell them, they told me to call the Medicare office. A lot of help they were.”

It’s comments like this that remind me why I am so passionate about helping people with their Medicare decisions. 

Pat trusted the insurance company he was using to help him with his Medicare choices and do the right thing for him, but unfortunately, they didn’t.

We see this all too frequently. 

When it comes to using an agent or broker representing an insurance company, it can be risky. They don’t always have your best interest in mind. 

During my free online workshop, I talk about how they can be biased in the plans and programs they show you, and that is true. They get paid commissions, so they tend to only show you the plans that pay the highest commissions.

The answer is no, you don’t have to use an agent or broker. You can go through an insurance company directly. However, my recommendation is to use a trusted agent or broker over going through an insurance company directly.
This might sound contradicting, so let me explain.

You have to enroll in many parts of Medicare, but you enroll in them differently. 

Your two main parts of Medicare are: 

You enroll in Medicare Part A and Medicare Part B directly through Medicare or the Social Security Administration. 

Agents or brokers can enroll you in:

Advantage and supplement plans pay brokers and agents higher commissions. Commissions can range from $30 to $600. 

I am a firm believer that you shouldn’t take an agent or brokers recommendation when it comes to which Medicare program you pick because of how they get paid. You’re not always getting unbiased advice from most insurance agents because they have an invested interest in what you purchase.

With that said, I do recommend that you use an agent or broker to enroll in coverage selections AFTER you’ve decided which Medicare route you’re going.

This ensures you’re making the decision that is best for you and not based on a commission.
An agent or broker is likely going to provide a better level of customer service than an insurance company would because of their commissions. They can help you down the road if you run into any issues. So this is where Pat missed out, he went straight to the insurance company, not an agent or broker.
When you decide what coverages are best for your situation and then enlist an agent or broker’s help, you have a better understanding of how your coverage works.
When you pass the decision off and let them sell you on their highest commissionable products, you can end up in the wrong plan and may not be able to make changes down the road.
My key takeaway here is to be careful about taking recommendations from agents or brokers. Once you make your best Medicare decision, you can then go to an agent or broker to enroll you.
Please, make sure when you’re choosing your Medicare program and plans, you’re doing what is best for you. I don’t want you to be left high and dry like Pat was.

Eliminate the Medicare confusion blues

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