Is Medicare Supplement Company Rating important?
A.M. Best Company publishes financial strength ratings of insurance companies. It is an important consideration for other insurances but is much less of a factor when selecting a Medicare Supplement (Medigap) insurance company. Typically, well-known insurance companies have better ratings than less-known companies. Most Medigap companies are not very well-known. Often their Medicare Supplement Insurance Company Rating is B or B+ (rather than A or A+). However, it should not be a factor in deciding which Medigap company to choose for two reasons:
Why is Medicare Supplement Company Rating not very important?
Here are the reasons:
- All Standardized Medicare Supplement Plans have common standards in Claims Processing and Claims Decisions (as well as in Medigap Benefits and Doctor’s Network). Therefore, variations between vendors are limited. The price is the primary differentiating factor.
- The processing is standard:
- Medicare provider submits a claim directly to Medicare.
- Medicare will forward the processed claim to the Medigap carrier to process accordingly.
- Medicare will pay part of a covered benefit, and the supplement will pay all or part of the remaining claim (based on the deductible, copays, and co-insurance for a given Medigap plan).
- The probability of financial failure for any of the insurance companies is very low|
- Even if the company goes out of business (which is very improbable), you are entitled to the Guaranteed Issue Period. It guarantees you the right to buy a Medigap policy with another company without medical underwriting, i.e., no health questions will be asked.
Let Liberty Medicare Help You.
If you are looking for Medicare Supplement coverage, Liberty Medicare is here to assist you. We’ll help in all stages of comparing, selecting and enrolling in the best and most suitable Medicare Supplement Plan for you. Our services are offered at no cost to you.
Please give us a call at 877-657-7477, or Contact us with your Medicare Questions.