Health Insurance Ratings To Help Pick A Provider

The moment one decides to buy health insurance, the question of which health insurance company to approach comes to mind. One of the best ways to choose the right health insurance company is to compare the ratings of the different health insurance companies.

For starters, when looking for health insurance, you should go to health insurance comparison websites. There you can find quick comparisons between quotes from A rated companies by filling out one simple form. Once you fill out the form, usually, you get a return of different companies that match the queries you put into the system. From there you can start to compare.

When you compare, you can see the differences between the strength of the companies financials, benefits, and changes in industry. You can also find out how well the company is suited to being able to pay future claims and other member benefits. If a company does not look poised to pay in the future, then it is not a viable option. It is really important to know whether or not a company can pay, because you don’t want to be stuck in the position of having to make good on a benefit that your company was not able to make.

When you do your checking, you will find that there are a few bench mark ratings that people tend to give the most weight to. Some of the top rated companies that do ratings are companies like Fitch Ratings Insurer Financial Strength Ratings, and the well known Standard and Poor’s Financial Strength Rating. Again, the financial strength of the company tells you how well a company will be able to make sure it can pay out it’s benefits, and again, financial strength is very important to making a good insurance company.

The health insurance companies are rated on a scale from AAA to CC. The health insurance companies rated NR have not been rated. The health insurance companies rated AAA have extremely strong financial characteristics, while those rated CC have weak financial characteristics, and may not be able to pay the claims.

When looking, ratings from BBB+ and higher are considered to be decent. Anything under that means that there is potential vulnerability. The + or the minus sign after a rating just shows the relative standings for the major categories. If you see a DDD rating, that means that there has been a failure to make payments, and there has been some regulatory intervention.

There are things that a health insurance rating cannot tell you. Keep in mind that a health insurance rating does not take into account canellation penalties, deductibles, or fraudulent claims. It also doesn’t take into account any potential restrictions of foreign exchange which may prevent financial obligations to being met. So, knowing that the rating is not the only measurement tool, is helpful since it will not give you all the answers.

When there are any changes in the insurance companies positions, the ratings can and usually change. If something drastic happens, it can also be suspended or even withdrawn. Once you have a company chosen, it is not a bad idea to periodically check to see whether or not your insurance company continues to hold onto it’s ratings.