Finding the best healthcare brokers in today’s healthcare market is becoming crucial. Insurance companies are ever more intricately intertwined with each other, and there is a growing strain in competition between them regarding their services and products. As the competition heats up, it becomes increasingly important for individual consumers to receive the best service possible when negotiating insurance plans. This article reviews some of the current commercial brokerages to help you identify one that can provide you with high-standard commercial brokerage services.
The industry has become much more competitive than before, so many new brokerages have come about., There are currently three types of brokerages: independent brokerages, captive brokerages (i.e., subsidiaries), and franchise brokerages. It is essential to understand how these operate before deciding on one that can best meet your needs.
An independent brokerage is just as the name implies: an organization wholly dedicated to commercial healthcare brokering for consumers and representing them in their negotiations with insurance providers. Independent brokerages are private companies and work independently from any insurance company, government agency, or corporation. As such, they function much as a small law firm would; they represent their clients’ interests at all levels and negotiate deals that will inevitably benefit both the client and the insurer (or network provider). This type of entity tends to be more expensive than its counterparts because it dedicates itself entirely to healthcare brokering by healthcare brokers. The cost differential between this type of brokerage and others is negotiable.
A captive brokerage is a subsidiary of an insurance company (or other independent corporation). Because they are affiliated with giant corporations, these brokerages often offer lower rates to consumers; the better the consumer’s plan, the more money the carrier makes. This type of brokerage can be advantageous because it works for you instead of against you; however, some disadvantages may prove costly in the long run.
When dealing with a captive brokerage, consumers will typically pay less for their healthcare plans than they would otherwise because these companies already have prearranged deals with certain insurers and providers. However, this also means that these types of brokerages tend to offer fewer options when choosing health care providers. Another disadvantage is that the costs of captive brokerages are often not negotiable; customers can either accept all fees as is or stay with their current providers and pay the total price for insurance, which means that if you dislike your insurer’s network (or vice versa), it may be more costly to switch than staying with what you know.