Choosing a Medicare Supplement (Medigap) policy is one of those situations where the decision seems easy, but the more nuance you understand the more difficult it might become.
The thing most people don’t realize is that every company that offers a Plan G for instance must offer the same benefits, they are federally regulated. That leaves you to research the differences, which is why we made this guide. We will walk you through exactly what goes into choosing one carrier over another based on “ratings”.
Why Medicare Supplement Company Ratings Are Important
As previously mentioned, the plan letters (A, F, G, N, etc.) are standardized across every insurance company that sells them (they are federal standards). This leaves you with a few deciding factors when comparing one carrier to another. They are usually financial strength, customer satisfaction, and how much they increase rates.
A “rating” can be two different things, a financial strength rating from an independent agency and a customer satisfaction score from some consumer review sites. Both are valuable and should be taken into consideration while shopping for your plan.
Understanding Financial Strength Ratings
Independent agencies like AM Best, Moody’s, and S&P rate companies based on their financial standing. These ratings are important because they tell you how likely it is that the company will still be around (financially stable) 20 years from now. As most carriers sell a Medigap plan that you buy once and keep for the rest of your life, it helps to know that the company will be there for the long term.
It’s important to understand what these ratings mean. Here’s a short description of AM Best’s rating categories (the most commonly used):
- A++ and A+ (Superior): The highest rating possible, it shows excellent ability to meet ongoing financial obligations.
- A and A- (Excellent): Very good, but not top, financial standing. Most of the major Medigap carriers fall into this category.
- B++ and B+ (Good): Still pretty safe, but not as strong as the ones mentioned above.
- B and below: Not recommended unless you do additional research.
Most independent agents will tell you to look for an A- or higher when selecting a Medigap carrier. This doesn’t mean that B+++ carriers are out of your league, just that you should do additional research before choosing one that doesn’t have an A- rating.
Top Rated Medicare Supplement Companies in 2026
There are several carriers that are often recommended for their high financial ratings and/or high customer satisfaction scores. Here’s a short list of what companies you will find when doing your research, and what their strengths are:
AARP / UnitedHealthcare
Being the largest Medigap provider in the country by far, UnitedHealthcare has both incredible buying power and brand recognition. This helps them offer some very competitive rates, particularly for people who will be enrolling in the plan on their own for the first time.
Mutual of Omaha
This carrier is well known for excellent customer service ratings and competitive rates. Mutual of Omaha has an established reputation for keeping costs down, and their underwriting guidelines are designed to keep rate increases to a minimum across their customer base.
Aetna
Mutual of Omaha has an established reputation for keeping costs down, and their underwriting guidelines are designed to keep rate increases to a minimum across their customer base.
Cigna / Healthspring
Cigna has seen some incredibly high consumer ratings, due in part to their excellent complaint resolution and competitive pricing in nearly all states they operate in.
Blue Cross Blue Shield (BCBS)
BCBS is actually a federation of 34 independent companies that operate under the same brand name. While you may receive different levels of service and pricing depending on which state you live in, these companies are known to provide top-notch coverage with great flexibility for your specific needs.
Humana
While they are more well known for their Medicare Advantage plans, Humana also has some excellent Medigap plans with optional add-ons for vision, dental, and hearing.
State Farm
State Farm has an incredible reputation when it comes to customer service, particularly for seniors. Their customer complaint ratios are near the bottom of the industry, and they often score very high in the eyes of independent agents who can offer their plans.
Physicians Mutual, Manhattan Life, and Transamerica
These 3 companies may not have the name recognition of the bigger companies, but they often have excellent financial strength ratings, and should be seriously considered when shopping for your Medigap plan.
The Five Ways Carriers Are Different
As mentioned before, carriers all have the same benefits for a given plan letter, so there are only a few things you need to worry about when comparing them against each other. Here’s what to look for when comparing one to another:
Financial Strength Rating
Look for companies with an A- or better rating, preferably from an independent agency like AM Best.
Pricing Method
Carriers will use one of 3 methods to price their plans.
- Community Rated: Everyone pays the same rate for a given plan.
- Issue Age Rated: Rates are set at the time of enrollment and never change thereafter.
- Attained Age Rated: Rates change as the policyholder ages.
Many attained age carriers have very attractive rates for younger seniors, but can be much more expensive for older policyholders. When shopping for your Medigap plan, it’s important to compare apples to apples.
Rate Increase History
Ask the agent about a given carrier’s history of rate increases. Some companies raise their rates dramatically every year, and can be much more expensive over the life of the policy than a carrier that increases their rates more gradually.
Discounts
Ask the agent what discounts are available. Many carriers offer substantial household discounts for people who buy insurance policies from them for multiple family members.
Customer Service And Complaint Ratio
The National Association of Insurance Commissioners maintains an online database that shows the complaint index for each company. This index can be useful when comparing one company to another. For the most part, you want to stay away from an index higher than 1.
The Six Questions To Ask Yourself Before Buying Medicare Supplement Insurance
- Make sure you understand what rating applies to the company you are considering.
- Find out what the NAIC Complaint Index is for the company, in your state.
- Get a rate quote for the same letter plan from at least two other companies, so you are comparing apples to apples when reviewing the cost.
- Ask what method they use to price your Medigap policy (Community, Issue Age, or Attained Age).
- Ask for the rate increase history for that particular carrier in your state.
- Make sure you are made aware of any discounts that would apply to you and if they are a guaranteed or promotional discount.
Common Mistakes To Avoid When Shopping
- Thinking that a larger company will always give you better coverage. Every company offers the same exact benefits for a given plan, so a smaller carrier can be just as good as a larger carrier for the same price.
- Not understanding how a given carrier prices their Medigap policies. An attained age carrier may look cheap when you are 65, but can be much more expensive when you are 75.
- Not shopping for your Medigap coverage during your 6-month Medigap Open Enrollment window. This period gives you legal protection from higher premiums or being denied coverage based on preexisting conditions, and it only occurs once in your lifetime.
- Not thinking about a carrier’s financial strength rating when shopping for a Medigap plan. While the cost is important, it doesn’t make much sense to get the cheapest policy possible if the insurance company will go out of business in a few years.
How Company Ratings Influence What You Pay
While the idea of a Medigap company rating might seem esoteric, they ultimately determine how much you will pay for your coverage. A company that has excellent underwriting and financial management practices can offer you more competitive rates and premiums because they understand that maintaining a stable pool of low-risk policyholders is the secret to long-term success.
At the same time, an insurance company that uses aggressive underwriting practices to attract new customers can find itself in a position where they have to increase rates across the board several years later, just to make itself whole.
If you are shopping for a Medigap plan, ask the agent for a five-year history of increases for that particular carrier and plan type. Chances are, one carrier’s Plan G rates and premiums will increase much faster than another carrier’s in your state.
As a general rule of thumb, you want to avoid a carrier whose premium has increased faster than inflation over that time period. This ensures that you are making an apples to apples comparison when shopping from one carrier to the next.
Understanding Your Differences By State
Most aspects of Medicare Supplement are handled at the state level, which means that what applies to you in California will be different from what applies to you in New York. A few states utilize community rating to determine Medigap premiums, which means that everyone pays roughly the same amount for the same Medigap plan.
Other states utilize attained age rating, which means that older people have to pay substantially more for their Medigap coverage. Finally, states like Massachusetts, Minnesota, and Wisconsin have unique rules about Medigap coverage that don’t apply anywhere else.
Because of the differences between states, it’s important to get the facts before shopping for a Medigap plan. The information on this site is helpful, but you should consult your state’s official resources to get the most accurate information possible. Ultimately, the best Medigap company for you will depend on the state you live in, as some companies will perform better than others in a given state.
The Reasons Why You Might Want To Change Carriers
Most people assume that you are stuck with your initial Medigap carrier for the rest of your life, which simply isn’t true. You can change your Medigap carrier at any time, though you might have to answer medical underwriting questions if you change outside of your Medigap Open Enrollment Period.
It’s always important to be completely honest when applying for a new policy, as the underwriter can deny your claim or increase your coverage costs if they suspect you of lying.
It’s usually wise to change Medigap carriers if your current carrier raises your rates considerably, you find another carrier that offers you a much better deal on a comparable plan, or your current carrier begins to provide terrible customer service.
Always make sure the new policy is active before canceling your old one, and be completely honest when asked about your health history. That way, you won’t be surprised if your new carrier denies your claim at a later date.
How To Work With An Independent Agent
An independent agent serves as your advocate when shopping for a Medigap policy. While you might think this means that they will help you select the best possible plan based on your individual needs, the truth is that they just want to help you select the same plan as everyone else.
They are much more likely to steer you towards a specific company if they believe it has the best rates, customer service, and financial standing for the coverage you’re looking to buy. If you are going to work with an independent agent, make sure they have licenses in your state and work with multiple companies, and are willing to compare rates from those companies.
Frequently Asked Questions
Do all Medigap companies offer the same coverage?
Medigap companies offer the same coverage for a given plan letter. This means that every company has to offer the same benefits under the same plan, as they are federally mandated. The differences between Medigap companies are usually found in the price, customer service, and financial strength.
What is the highest rating a company can get?
The highest rating a company can get ranges from company to company. According to AM Best, for instance, the highest possible rating is an A++ (Superior).
Is it worth it to pay more for a top rated company?
It all depends on how much you have to pay and the differences in ratings. A small price difference and slightly lower rating often means you will get much better value for your premium.
Can a Medigap company drop me if I become sick?
No, as long as you continue to pay your premiums, your Medigap company cannot drop your policy or cancel your coverage.
Where can I find a company’s rating?
You can often find a company’s rating on the company’s website, though you might have to dig around for it a bit. The most reliable source for getting a company’s rating is AM Best’s website. You should also check your local Department of Insurance to see if they have any reviews for the company.
How often do Medigap premiums increase?
Medigap premiums are increased often, but not always. They vary from company to company, as well as from state to state. Most companies tend to increase premiums every year, although there are some that only increase them every few years. Premiums for community rated Medigap plans tend to increase much slower than attained age rated plans, as the latter has to reflect the increasing age of the customer base.
Does a low rating always mean poor customer service?
Not always, although it can be an indicator. Every company is different, which means that one company with a low rating can offer fantastic customer service while another with a high rating might offer poor customer service.
Can I negotiate my Medigap premium?
Your Medigap premium is not something you can negotiate as it’s set by the carrier. However, you can look for a different carrier that offers more competitive rates, ask for discounts, or shop around during your Medigap Open Enrollment window.
The Checklist To Follow Before Signing Up
Before signing up for your Medigap plan, it’s always a good idea to follow a short list of things you should do to make sure everything is in order. The following checklist was created based on everything mentioned above, and is used often by many experienced shoppers to help them sort through everything without having to do it alone. This is what the checklist should look like:
- Compare Quotes Based On The Same Plan Letter: When comparing quotes, make sure you are looking at the same plan letter. It wouldn’t make much sense to compare a Plan G to a Plan N, for instance.
- Make Sure The Company Has A Good Rating: Double-check that the company you are considering has a good financial strength rating.
- Compare The Pricing Method Used By The Company: You should also compare the pricing method each company utilizes. Ask the agent if it is community, attained age, or issue age rated.
- Ask The Agent For A Rate Increase History: Request rate increase history for the last 3 to 5 years in your state.
- Find Out If You Are Signing Up During Your Open Enrollment Period: Ask yourself if you are signing up for the Medigap plan during your open enrollment period, as it ensures that you are not denied coverage.
- Review The Fine Print To See If Any Discounts Are Available: Review the fine print to see if any discounts are available to you.
- Ask About Claims And How The Process Works: Ask the agent about claims and how the process works.
The checklist should help you narrow your options down to just a few companies worth considering, which makes finding the right Medigap plan much easier. If you follow the short list of things to consider when shopping for a Medigap plan, you will be able to make the best decision for your specific needs.
Final Notes
Medicare Supplement company ratings don’t have much to do with benefits, since those are all standardized by the federal government. Instead, you should be comparing financial strength ratings, customer satisfaction scores, and rate increase history. Taking the time to complete a thorough search can help you find the most competitive rates while avoiding companies that increase rates frequently or offer poor customer service.
