Since independent Medicare brokers offer completely free insurance services to individuals, it’s difficult to pinpoint how they make their money. The YouTube video “How Do Medicare Brokers Get Paid?” explains how independent Medicare brokers get paid for the services they render.
Indepedent Medicare insurance brokers provide unbiased reviews of a person’s medicare insurance options. Unlike captive agents who are licensed by only one insurance company, they are licensed by several Medicare insurance consulting companies. Hence, they’re able to provide a myriad of medical insurance plans for clients.
Independent medicare insurance brokers get paid directly by the medicare insurance consulting companies who they’re contracted to, and as a result, do not have to charge additional fees to their clients. They offer the same rates as the insurance company since they have their administrative and commission fees alloted into the insurance premiums.
When clients go through an independent Medicare insurance broker to purchase a plan, the independent broker gets paid a commission; if they choose to go directly to the Medicare insurance company, no kickbacks are paid to any independent broker, but the client misses out on the advisory services that an independent broker usually provides.