Supplement Carriers

Also known as Medigap, these standardized plans ensure that your Medicare Supplement coverage remains consistent year to year. For instance, your Plan G will offer the same coverage for life, as will your Plan N. A Plan G from one supplement insurance carrier is identical to a Plan G from another carrier (standardized). The key differences lie in the company you choose to obtain it from and the rate you pay. 

When it comes to choosing your doctors, there are no network restrictions. You have the freedom to visit any doctors office or hospital that accepts Traditional Medicare in the entire United States.

No Referrals

No Prior Authorization

No Network

No prior authorization is required for medical services. This is especially beneficial for those with Medicare Supplement plans, as they  provide coverage without the hassle of approval delays from an Insurance Carrier. If Original Medicare approves the service, your supplement Plan is required to pay. 

Predictable

With Advantage Plans changing from year to year. Especially the past few years, your Medicare Supplement will give you the assurance and predictable amount you will be spending year to year on healthcare. 

What is a Medicare Supplement premium? It’s the monthly rate you pay to the Supplement Insurance Carrier that provides your Medicare Supplement coverage. This premium is in addition to your Traditional Medicare Part B Premium. It's important to find out what premium each insurance carrier will charge you. Are they offering a low premium? Is it a competitive rate compared to other carriers available in your zip code?

Most companies will have an annual rate increase for their Health Insurance Plans to keep up with medical inflation. What have the rate increases of the Medicare Supplement carrier been over the last 3-7 years? Are the rate increases reasonable or significantly higher than those of competitor carriers offering Supplement Insurance?

An AM Best rating is an independent, credit rating opinion assessing an insurance company's financial strength, creditworthiness, and ability to pay claims. As a specialized agency focusing solely on the insurance industry since 1899, it provides letter-grade ratings ranging from A++ (Superior) to D (Poor). AM Best +3Key Aspects of AM Best Ratings:

• Focus: Evaluates a company's balance sheet strength, operating performance, and business profile.
• Purpose: Helps consumers and investors determine if an insurer can meet its obligations, especially after major disasters.
• Ratings Scale:
  • A++ or A+: Superior
  • A or A-: Excellent
  • B++ or B+: Good
  • B or B-: Fair
  • C++ or C+: Marginal
  • C or C-: Weak
  • D: Poor

S&P Global insurance ratings measure an insurer's financial strength and ability to meet policyholder obligations, ranging from AAA (extremely strong) to D (default). These ratings evaluate factors like capital adequacy, management, and liquidity to indicate long-term solvency. Generally, ratings of AAA, AA, A, and BBB are considered secure. 

• Scale: Ratings range from AAA, AA, A, BBB (Investment Grade/Secure) to BB, B, CCC, CC, R, SD, D (Speculative/Vulnerable).
• Modifiers: Plus (+) or minus (-) signs may be added to further refine the rating (e.g., A+ or A-).
• Evaluation Factors: S&P analyzes financial structure, earnings, liquidity, management strategy, and market position.
• Focus: Unlike stock ratings, these focus specifically on an insurer's "claims-paying ability".
• High Ratings (AAA/AA): Indicate a superior ability to meet financial commitments, even under adverse economic conditions. 

• Recent Trends: The overall market loss ratio was 77.4% in 2021, up from 72.4% in 2020 due to COVID-19 reduced utilization. By 2024, some reports indicated the ratio increased to 84.3%, with popular Plan G exceeding 90%.
• Definition: The loss ratio represents the percentage of total premiums paid by policyholders that is used by the insurer to pay medical claims.
• High Ratios: When the loss ratio is high (e.g., above 95%), insurers are more likely to increase premiums to cover costs. Loss ratios of national and state insurance companies are important indicators.