Medigap Insurance Companies
Today, the available Medigap or Medicare Supplement insurance companies to choose from is larger than ever. When shopping for coverage, your priority should be picking the best plan for your needs. Second, you will want to compare the rates of all the companies offering that particular Medigap Plan. Lastly, do a little research on the companies offering the lowest rate. Most likely, you will not find anything to cause you concern, but a quick evaluation doesn’t hurt.
How to Evaluate Medicare Supplement Companies
Search: “company name” reviews
Take a look at the online reviews for the company you are considering. Take any negative reviews with a grain of salt, unless you see a reoccurring trend. Pay particular attention to complaints about claim administration and customer service. Ignore any comments regarding rates. Medigap rates and laws differ from state to state. Online reviews about a company’s competitiveness and rate increase history likely doesn’t apply to your situation.
Check with the Different Financial Rating Agencies
A.M. Best, Moodys, Fitch, Standard and Poors, and The Street.com all rate insurance companies based on financial strength. Do not be overly concerned unless you see a pattern of incredibly negative ratings or a recent history of downgrades. Also, if a company is not rated, don’t worry. Not being rated is very common for smaller Medicare Supplement companies. If your state has approved the company for sale it has passed their financial scrutiny and will continue to be audited on a regular basis.
Listen to Your Insurance Agent’s Recommendations
Independent agents are always in touch with the insurance industry as a whole. Your agent also has a vested interest in the Medicare Supplement companies they represent. Under no circumstances would an independent agent sell products for a company known to be under financial stress. Agents also want to represent carriers who offer an above average level of service. This makes their job easier. You and your agent’s interests are aligned, and their endorsement of a company should go a long way.
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