Medicare Supplement Insurance Company Ratings
You always hear Medigap Insurance providers boast about an A or ever A++ rating, but what does that mean? Today we will discuss the rating system used by Medicare Supplement Insurance companies.
The rating system was created and is managed by A.M. Best Company headquartered in Oldwick New Jersey. The agency is recognized by the National Association of Insurance Commissioners to evaluate an insurance company’s ability to compensate policy holders when needed and the company’s financial performance each quarter. As a Medigap insurance resource, we’re most concerned about Best’s Financial Strength Ratings (FSR). The point of insurance is to provide you with financial support when you need it, so this rating scale assesses their ability to do that. Think of it as a “security rating.”
Medigap are given Financial Strength Ratings, which are letter based ratings ranging from most secure to most vulnerable.
There six ratings that are deemed “secure”
A++, A+ (Superior)
A, A- (Excellent)
B++, B+ (Good)
Any rating after that is considered vulnerable.
B, B- (Fair)
C++, C+ (Marginal)
C, C- (Weak)
E (Under Regulatory Supervision)
F (In Liquidation)
S (Rating Suspended)
Most Medicare Supplement Insurance agencies, including MedicareMall, only offer Medigap Insurance Plans from companies with secure ratings. When shopping for Medicare Supplemental Insurance, be sure to take a companies Financial Strength Rating into consideration.
To get more information about Medicare Supplement Insurance plans, talk to one of our Medigap plan representatives today or get a free quote today.