Insurance Agent vs. Insurance Broker: What’s the Difference?

If you’ve ever felt overwhelmed when trying to choose the right Medicare plan, you’re not alone. A lot of people find the Medicare annual enrollment period confusing. It’s very easy to feel stuck when you’re working with an insurance agent who only shows you plans from one company, without anything to compare to.

But here’s the good news: you don’t have to settle for that. When you work with a Medicare broker, you have access to a wider range of plans from multiple insurance companies. A broker, unlike an agent, can help you compare these options so you can find the best fit for your needs. 

With big changes coming in 2025 due to the Inflation Reduction Act, this flexibility is more important now than ever. One of the changes that will be implemented in the new year is the cap on prescription drug costs. Many people are now unsure about their coverage, understandably so — what if your medication suddenly isn’t covered anymore?

So, if you’ve ever felt confused or limited by the insurance agent versus broker decision, now is the time to understand your options…so you can get the help you really need. 

We want to help you make sure that you’re prepared for Medicare Annual Enrollment 2025, so you can select the right plan for you. This is why, in today’s blog, we’ll be clearing up any confusion about what an insurance agent versus a broker is – and which one is the better choice for you.

What Is a Medicare Insurance Agent?

A Medicare insurance agent is someone who helps you find a Medicare plan. Sounds good at first, but there’s a catch: they only work for one insurance company. 

That means the plans they offer are limited to what that particular company provides. So, logically, if you work with an agent, you might not get to see all the other options available out there.

Agents do offer free advice and can help you through the enrollment process. This alone can be a big help. However, what they can’t do is compare different companies’ plans. 

While their help is free, their selection is often limited. They act in the interest of the insurance company they work for. This leaves you with fewer (and often less beneficial) choices than you’d like.

What Is a Medicare Broker?

A Medicare broker, on the other hand, works with lots of different insurance companies. That means they can offer you a much bigger variety of plans to choose from. Since brokers have access to so many different options, they have the flexibility to help you find the plan that best fits your needs.

 A broker can take into account what you need – whether that’s finding the best prescription drug plan, the most affordable premium, or a plan that covers your preferred doctors. Their focus is to help you get the best possible plan, not just one from a single company. 

Working with a broker can make the whole process of choosing a Medicare plan more personalized. It’s more beneficial in the long run since you get to compare plans and choose the one that lets you save the biggest amount of money on medical expenses.

Medicare Insurance Agent vs Broker: A Quick Comparison

Here are all the important differences between insurance agent and broker at one glance:

Medicare Insurance Agent:

• Represents one insurance company.
• Can only offer plans from that company.
• Limited plan options: you may see only one or two choices.
• May not always be the best fit for your unique needs.

Medicare Broker:

• Represents multiple insurance companies.
• Offers a wide variety of plans from different companies.
• Provides many more options and allows you to compare and choose the best plan.
• Helps find personalized solutions based on your healthcare needs and budget.

Do Medicare Insurance Agents vs Brokers Have the Same Costs?

Here’s something that surprises a lot of people — there’s no difference in cost when you work with an insurance agent vs broker. Both provide their services for free. No matter if you choose a plan through an agent or a broker, you won’t be paying any extra fees for their help.

In fact, it’s illegal for agents and brokers to charge you anything for their assistance. Their job is to help you understand Medicare and enroll in the best plan for your needs, all without adding any cost to you. 

So from that perspective, when it comes to fees, you’re in good hands whether you decide to work with an agent or a broker!

If you’d like to learn more about what independent Medicare insurance agents or brokers can provide, check out one of our latest blogs on this topic. 

Why DIYing Your Medicare Plan Isn’t the Best Idea

Some people love doing things themselves. Maybe you’re good at fixing things around the house or doing your own oil changes — that’s great! 

But when it comes to choosing the right Medicare plan, doing it on your own isn’t really the best option. 

Why? Because Medicare can be confusing, and you might not know exactly what you’re looking at. It takes time to do the proper research – and even then, it’s easy to make mistakes. Those mistakes could end up costing you lots of money down the road.

The good news is that, as we mentioned, getting help from a Medicare broker or agent doesn’t cost you a thing. So, there really is no benefit to doing this yourself. You will probably end up spending more time on the research than it would take to reach out to a professional. 

Let’s be honest, learning about all the rules and details of Medicare isn’t exactly fun. It’s a lot easier (and less stressful) to let someone who understands it inside and out guide you through the process.

Why Should You Work with a Medicare Broker for 2025 Enrollment?

The Medicare Annual Enrollment for 2025 is going to be more important than ever. Why? Because big changes are coming to Medicare plans. 

One of these major changes is due to the Inflation Reduction Act. This act introduces a $2,000 cap on Medicare prescription drug plans. 

While this cap is designed to protect seniors from high out-of-pocket costs, it’s also causing major confusion for many Medicare beneficiaries.

What Does the $2,000 Prescription Drug Cap Really Mean?

Starting in 2025, there will be a $2,000 yearly limit on what you pay for prescription drugs under Medicare. This cap is great news for people who spend a lot on medications each year, as it will limit how much they have to pay out of pocket. 

In the past, some people had to spend much more on their medications, but this new rule means they won’t have to pay more than $2,000 per year.

However, while this sounds positive, the details of how this will affect individual plans can be confusing. Many people aren’t sure if their current plan will cover the medications they need or if they’ll need to switch to a different plan. 

This is where working with a Medicare broker can help. Brokers can explain how these new rules work and find the best plan that fits both your health needs and your budget.

Why Is the Medicare Annual Notice of Change So Important?

Each year, Medicare sends out an Annual Notice of Change to let you know if your current plan will renew for the following year, and if there are any changes to your benefits, premiums, or covered medications. 

Unfortunately, many seniors overlook this notice or toss it aside without realizing how important it is. But this can become a problem…Ignoring it can lead to unexpected issues when the new year starts — such as higher costs or a change in your coverage that you didn’t anticipate.

A Medicare broker can sit down with you and go over the Annual Notice of Change, making sure you understand any updates or adjustments to your plan. You can avoid unpleasant surprises this way and make informed decisions about your Medicare coverage for 2025.

How to Find a Medicare Broker (or Agent) You Can Trust

Once you’ve made your decision about whether you would like to work with an insurance broker versus an agent, the next step is finding a trustworthy person or company to work with. This is key to getting the best advice and guidance possible.

As a general piece of advice, you can find a good Medicare broker or agent by researching online and reading reviews from real customers. Google “Medicare broker near me” and look for brokers and agents who have a strong reputation for being thorough, patient, and helpful — those who genuinely care about finding the right plan for you, not just making a quick sale.

If you’re located in the Woodland Hills, CA area, we at Jason Rubin Insurance Services would be happy to help you. 

We’re Medicare brokers in Woodland Hills, CA, and we’re proud to have had the opportunity to help many Medicare beneficiaries understand their options and choose a plan that perfectly fits their needs. We believe in taking the time to make sure you fully understand your options so you can make the best choice for your health and financial situation.

If you’re interested, you can read more about us and the services we provide. And if you’re interested in learning more about upcoming changes due to the Inflation Reduction Act, check out our blog on this topic.

Work with a Knowledgeable Broker Today

Hopefully, we’ve cleared up the confusion about the difference between an insurance agent and an insurance broker for you. 

As the Medicare Annual Enrollment Period 2025 gets closer, it’s important that you make an informed decision about your Medicare coverage. This decision could significantly impact whether or not your prescription medications and other medical expenses are covered. 

When you work with a Medicare broker like Jason Rubin, you’ll have access to many different plans from multiple companies. We’ll help make sure that you get the best possible coverage for your needs. Our services are always at no cost to you. We are available to answer any questions you may have, anytime. 

Let us know if you are interested in exploring Medicare Advantage, prescription drug plans, supplemental plans, or anything else. We’re committed to helping you find a solution that works for you.

We’d be happy to hear from you! Feel free to contact us anytime or schedule a free consultation so you can get personalized assistance. 

Let us help you make the best choice for your Medicare coverage with confidence. You won’t regret reaching out to us!