Medicare Broker vs. Agent

The biggest difference between a Medicare Agent and a Medicare broker is that an agent represents one or more insurance companies, while a broker works for the person looking for the best Medicare plan for their situation.

Agents and brokers both compare different Medicare plans and combinations of plans to come up with the best options based on price and need.

Agents and brokers do not sell Original Medicare — Medicare Part A or Part B. They sell private Medicare plans. These include Medicare Advantage, Medigap and Medicare Part D drug plans — all sold through private insurers.

Agents work on a commission based on the Medicare policies they sell. They also handle the process of searching for and applying for Medicare plans.

Brokers work as an intermediary between you and insurance companies. A broker reviews and researches several different Medicare plan options then recommends the best plan based on your needs and the plan’s price.

Brokers cannot sign you up for a particular plan, though. Once you make your choice, the broker turns you over to the insurance company or one of its agents to complete the deal.

Medicare brokers frequently sell other types of insurance — home, life, auto, long-term care — which may be of interest to you.

When comparing Medicare agents and brokers, it’s important to understand the two different types of agents as well — independent agents and captive agents.

Captive agents represent a single insurance company. They focus specifically on the plans their company offers.

Independent agents represent several competing insurance companies. They may work in a way similar to brokers — in that they can compare Medicare plans from different companies — but they still represent the companies whose plans they offer.

Agents and brokers all receive commissions, but some agents also receive a salary from an insurance company.

You don’t pay for the services of a Medicare broker or agent.

Enrolling in a Medicare Advantage, Medigap or Medicare Part D prescription drug plan does not increase your premium or other costs for coverage. Since agents and brokers receive commissions from the insurers, their service is effectively free of charge to you.

You do not need an agent or broker to find the best Medicare coverage for you. You can do the research on your own. But a Medicare agent or broker can help guide you through the often confusing process of finding the best available Medicare plan — or combination of plans — for your needs.

Pros and Cons of Using a Medicare Agent or Broker

There are some differences between how a captive agent, independent agent and broker function. The chief differences may be something you should consider when making a decision on which professional to choose.

You can check with Medicare to find agents and brokers and with your state insurance department to verify the license status of someone who claims to be an insurance agent or broker.

When selecting a Medicare agent or broker, make sure they look at whether or not your current coverage — based on both coverage terms and price — is the best option for you.

The average Medicare beneficiary has 39 Medicare Advantage plans to choose from in 2022, according to the Kaiser Family Foundation. That number may be higher in urban areas and lower in rural areas. There are also wide selections of Medigap and Medicare Part D drug plans available. Prices and coverage can vary widely, and not all plans are available everywhere.

You should ask if the broker or agent will review all plans available where you live — or if they will limit their review to a small selection of plans.