816-400-4477
Only 27% of people say they trust insurance agents and brokers — mostly because of myths that simply aren't true.
The short version
Using a licensed insurance broker does not cost you money and does not increase your premium. Brokers are paid a commission by the insurance carrier, already baked into the price of every plan, so the premium is identical whether you enroll yourself or work with a broker. For ACA Marketplace plans specifically, brokers are typically paid a flat monthly rate rather than a percentage of your premium, meaning they have no financial incentive to steer you toward a more expensive plan. The three misconceptions below are the ones that most often keep people from getting free, expert help finding coverage.
Sources: Insurance Thought Leadership consumer trust research; Insurance Business America commission structure reporting.
Myth: using a broker costs money and raises premiums
Most people assume working with a broker will cost them one of two ways: a consultant fee, or a higher premium. Neither is typically true. The legality of standalone broker fees varies by state, and where they're legal, regulations generally require the broker to disclose them upfront and get explicit permission before charging one. In practice, the large majority of licensed brokers, including every agent at Apollo Health Insurance, don't charge consultant fees at all, earning their income entirely from insurer-paid commissions instead.
Insurance carriers are not permitted to raise your premium because you used a broker. Instead, carriers split the premium with the broker as a predetermined commission, a cost that's already built into the plan's price for every buyer, whether or not they use a broker. The plan you choose costs exactly the same whether you enroll directly through the insurer, through Healthcare.gov yourself, or through a licensed broker.
It helps to walk through why this holds up even when people assume otherwise. Carriers set a single filed rate for each plan, submitted to state insurance regulators well ahead of the plan year and locked in for that year regardless of how any individual customer enrolls. When a broker is involved, the carrier simply routes a portion of that already-fixed rate to the broker as commission instead of retaining the full amount internally. Nothing is layered on top for the customer; the split happens entirely on the carrier's side of the transaction and never shows up as a separate line item on your bill. It's also why a broker can't offer you a "discount" for skipping their help: the rate is fixed at the carrier level no matter who assists with the enrollment.
This structure is also regulated at the state level for exactly this reason. Insurance departments require carriers to file their rates and commission schedules together, which is part of why a broker legally cannot negotiate you a lower premium in exchange for a smaller commission, and cannot legally charge you more to pad their own cut. The rate you see is the rate everyone sees for that plan, broker or no broker.
Healthcare providers are contractually and legally obligated to charge the identical premium regardless of enrollment method, which is exactly why comparing "with broker" versus "without broker" pricing for the same plan will always come back equal.
Myth: brokers work for insurance companies, not you
This misconception usually comes from confusing an agent with a broker, two genuinely different roles that get used interchangeably in everyday conversation. Understanding the distinction changes how you should think about who's actually representing your interests during your search.
| Role | Who they represent | What they can offer |
|---|---|---|
| Insurance agent | A single insurance company | Only that company's own plans |
| Insurance broker | You, the individual | Plans from multiple carriers, compared side by side |
An insurance agent represents one specific carrier, knows that company's products in depth, and will do everything possible to find you the best plan that specific company offers, but nothing outside it. A broker represents you instead, working with several insurance providers simultaneously to shop across carriers and find the best overall fit, regardless of who happens to offer it. It's a similar dynamic to real estate: a seller's agent represents the property being sold, while a buyer's agent represents your interests and searches broadly on your behalf.
This distinction matters most when your needs don't fit neatly into one carrier's lineup. If your preferred doctor is only in-network with one specific insurer, an agent representing a different company simply can't get you there; a broker can check that network directly and steer you toward whichever carrier actually includes that doctor. The same is true for prescription formularies, which vary significantly between insurers even for identical drugs, and for family situations where different household members might genuinely be better served by different carriers' plans. A broker is positioned to notice and act on that; a single-carrier agent structurally isn't.
None of this makes agents a bad option. If you already know exactly which carrier you want, working directly with that company's agent is perfectly reasonable and can be a fast path to enrollment. The broker route makes the most sense when you're not yet sure which carrier fits best, or when you want someone actively comparing on your behalf rather than presenting one company's options.
Myth: brokers push pricier plans for bigger commissions
This is the misconception that most often keeps people away from brokers entirely, and it has surface-level logic: if brokers earn commissions, wouldn't they want to sell you a more expensive plan? That logic would hold if commissions were paid as a percentage of your premium, but that's not how the majority of health insurance commissions actually work.
Most plans brokers help with are Affordable Care Act plans, representing the large majority of individual and family coverage sold. For these plans, broker commissions are paid as a flat monthly rate per enrolled plan, not a percentage of the premium. A broker earns the same commission whether your monthly premium is $150 or $1,500. Their only real financial incentive is to find coverage you'll actually keep paying for, since a plan you can afford and are satisfied with is a plan you'll continue renewing, and continued renewal is what keeps that flat commission coming.
Worth noting: this flat-rate structure is specific to how most ACA and individual-market health plans compensate brokers, and it's a meaningfully different model than commission structures in some other insurance lines, such as certain life insurance products, where percentage-based commissions are more common. That difference is exactly why blanket statements like "insurance salespeople are commission-driven upsellers" don't hold up evenly across the industry; the incentive structure depends heavily on which specific product is being sold, and for health insurance specifically, the flat-rate model is the norm.
For the authoritative external source on consumer trust in this industry, Insurance Thought Leadership's research on agent and broker trust confirms the underlying trust gap directly, and Insurance Business America's guide to health insurance agent compensation explains how flat-rate commission structures typically work.
What a good broker actually does for you
Beyond simply enrolling you in a plan, a good broker compares options across multiple factors that are easy to overlook shopping alone: premium, deductible, coinsurance, and out-of-pocket maximum together rather than premium in isolation; whether your specific doctors and prescriptions are actually covered under a given plan's network and formulary; and your real subsidy eligibility under current rules, which can meaningfully change your effective cost from one year to the next. A broker also stays available after enrollment, helping with claims questions, renewal comparisons, and life changes that might qualify you for a Special Enrollment Period outside the standard window.
A good broker also acts as a translator for the fine print that tends to matter most in a real claim: the difference between a plan's coinsurance and copay structure, what counts toward your deductible versus your out-of-pocket maximum, and whether a given procedure needs prior authorization before your insurer will cover it. These are the details that, if missed during enrollment, tend to surface as an unpleasant surprise months later on a bill. Catching them upfront, before you've committed to a plan for the year, is one of the more understated ways a broker earns their keep.
Renewal season is another point where the value compounds. Plans change their networks, formularies, and pricing every year, sometimes significantly, and a broker who already knows your situation can flag when your current plan has shifted in a way that no longer serves you, rather than leaving you to notice only after a claim gets denied.
The real benefits of working with a broker
Most people would genuinely benefit from working with a broker to find health insurance. Brokers bring deep, current knowledge of the health insurance industry, and their ability to compare plans across carriers isn't something an average person can easily replicate on their own in a reasonable amount of time. Since broker costs are already built into every premium regardless of whether you use one, there's no real financial downside to getting expert help, and a meaningful potential upside in finding a genuinely better-fitting plan.
If you want to work with a broker, Apollo Health Insurance brokers are healthcare experts who can find a plan with the benefits you need on a budget you can afford. Talking with one is completely free, with no obligation to enroll, and there's no scenario in which asking questions first costs you anything you wouldn't otherwise have paid for the exact same plan.
Common questions about insurance brokers
Have a question that isn't answered below? Our full health insurance FAQ page covers more general coverage questions.
Does using an insurance broker cost more?
What's the difference between an insurance agent and a broker?
Are brokers incentivized to sell more expensive plans?
Do brokers charge consultant fees?
Can a broker help after I've already enrolled in a plan?
Is it worth using a broker if enrolling myself is free?
Curious what a broker could find for you? Let's talk. At no cost.
An Apollo broker can compare plans across carriers and confirm your specific doctors, prescriptions, and subsidy eligibility. Broker services are free to you.
Explore individual health insurance plans, or learn more about our licensed advisors.
Disclaimer: This guide is general educational information about how insurance brokers and commissions typically work and is not a guarantee of any specific broker's fee structure or a specific plan's cost. Broker fee legality and commission structures vary by state and carrier. Verify current details directly with a specific broker or a licensed Apollo Health Insurance agent before making a coverage decision. Apollo Health Insurance is a licensed insurance brokerage; we are not affiliated with the federal government or any state agency.
I am a professional content writer specializing in the health insurance field. My work primarily focuses on simplifying the complexities of healthcare coverage, aiming to provide clarity and insight into an often confusing subject. Empowering people to make informed decisions about their well-being is my passion. At Apollo Health Insurance, we share that commitment. Apollo Health Insurance stands at the forefront of securing the best healthcare coverage for individuals, ensuring affordability without compromising on quality.