There has been a lot of conversation in the news in the last week regarding the new Obamacare Navigators that will be available when the Federal and State Exchanges open in October. There has been adulation over the fact that they will be there to assist consumers with the exchanges, and there has been concern over the fact that they will not fully be screened implicating worries over fraud.
The broader picture is why you would use a Navigator when Brokers/Agents are available. Here are four relevant issues as to why you should use a Broker/Agent.
First, a Broker/Agent has been vetted by the Department of Insurance of each state they are licensed in. Their license, testing, and continuing education indicate that Brokers/Agents are competent in the insurance field and have an implied fiduciary responsibility to their clients and their private information.
Second, a Broker/Agent can explain an insurance policy for a consumer. Each insurance carrier they represent to be able to discuss the plan options and how they will perform for the consumer appoints them. A Navigator will not have these appointments or the insurance license to discuss products. Would a consumer really want to sign up for a plan with unanswered questions about how the plan will operate? One example would be this: A consumer is taking a few prescription drugs and is interested in signing up for Plan X. An appointed broker would be able to look up Plan X’s documentation and determine the Tier rating for each drug and the costs associated with the drugs, a Navigator would not be able to do this.
Third, Navigators are just now being interviewed and hired. This means that they will have a total of 5 to 6 weeks of experience in the field. Does the average consumer want to entrust their family information, financial information, social security numbers, and IRS data to someone that has no experience in the field? A Broker/Agent has several years in this field and the expertise will be invaluable when they are guiding consumers through their choices both on and off the Federal/State exchanges.
Fourth, Professionalism should be an important factor for anyone that is making decisions that will cost thousands of dollars. New health insurance products are going to have plan prices that can be over $10,000 and out of pocket limits that can reach $13,700. When faced with decisions that can be so costly the average consumer should seek the professional guidance of a Broker/Agent whom can fully educated the consumer on plans, options, exchange subsidies, cost sharing requirements, metallic plan options. Do you expect that someone with 4 to 6 weeks in an industry will have the same professionalism that true professionals with five to ten years in a field may have?