Brokers are one type of distribution channel that health plans use to market their health plans. One true statement about brokers for health plan products is that, typically, brokers:

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Typically, brokers are considered to be an agent of the buyer rather than an agent of the health plan or insurer. This means that they work on behalf of their clients (buyers), and not the insurance company, and are responsible for finding the best plan to meet their clients' needs. However, some states do require brokers to be licensed, and brokers may represent multiple health plans or insurers instead of just one. Brokers are also typically compensated through commissions based on the number of policies they sell.

Brokers Are One Type of Distribution Channel That Health Plans