What does Health Insurance Brokerage mean?



What is a Brokerage?

We find brokerages in many different areas of business.  We usually find them in the insurance and financial industries.  A brokerage simply acts as a middleman between sellers and buyers. Sellers don’t always know how to connect with potential buyers and buyers don’t always know where to look. Thus, we have an intermediate group that connect the two.

So, What is a Health Insurance Brokerage?

A health insurance brokerage is an intermediary between health insurance companies (also called health insurance carriers) and people who need health insurance.  Here at Cliff Consulting Group we have contracts with all major carriers.  This means we can sell insurance to consumers on their behalf.  We, therefore, connect consumers to carriers and vise-versa.

The advantage of using a health insurance broker is that we can look at all the plans for all the carriers that we are contracted with and choose the best one for you.  If we put you on a plan, but later we find a better plan with a different carrier, no problem!  We can switch you to that better plan.  We do this all at no cost to you!  That’s right, you don’t pay us any money!

In contrast, an individual insurance company who is marketing to you can only put you on one of its own plans. There is no shopping around different companies.  You only have the options that the individual insurance company provides you.  You could also shop around yourself, but chances are you are not too familiar with the intricacies of the health insurance industry. Also, the healthcare.gov site is not always the easiest to navigate. We have licensed agents that are experienced in the industry. We know the industry and how to get you the best plan. Why wouldn’t you want someone experienced helping you get the best health insurance plan for you? Especially, when it’s free! So get started now!

How does a Brokerage make money?

There might be one lingering question in your mind, how does a brokerage make money if we don’t pay them? That’s a great question. A brokerage is usually a commission based company. This means that a brokerage gets paid a percentage of a sale by the seller. The buyer usually only pays the seller. However, typically in the situation of a financial brokerage (for example, selling stocks) there is a fee for each transaction. Some health insurance brokerages may follow a similar practice by charging a fee for consultation.

Cliff Consulting Group does NOT charge anything to the consumer. We only receive commission payment from our contracted carriers for connecting you with them. You pay us nothing. It isn’t often that you see a professional helping you make an important buying decision for free, so take advantage of the opportunity!