Health Insurance Broker vs. Agent: What's the Difference?

Ask ten people the difference between a health insurance broker and an agent and you'll get ten answers. In practice, the label matters less than one question: how many insurance companies can this person sell?

The textbook difference

Traditionally, an agent represents an insurance company and a broker represents the customer. Many states don't use the word "broker" in their licensing at all; everyone is licensed as an insurance "producer." That's why you'll see the terms used loosely.

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The difference that matters

Captive agent: works for or with one insurer and sells only its plans. Helpful if you already know you want that company.
Independent agent or broker: appointed with several insurers. Can show you how plans from different companies compare on price, deductible and network.

Do they cost different amounts?

No. For individual and family coverage, insurers pay the commission, and the premium is the same no matter who enrolls you.

Which one should you use?

If you're shopping, use someone who can compare more than one carrier and who is certified with your state's marketplace so you can get any premium tax credit you qualify for. If you're loyal to one insurer, a captive agent works fine.

How to tell which you're talking to

Ask directly: "Which carriers can you quote in my county?" An independent agent will name several.