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Comparing A+ Rated Insurance Companies

A+ Rated Insurance CompaniesWhen choosing an insurance provider, company ratings are of great importance.

Whether it’s an annuity account, Medicare supplement, life insurance policy, or long term care coverage – you want assurances your chosen company will be there for the long run.

All insurance is an investment in your future. Knowing you have an A+ rated carrier backing your health or investment provides stability, strength, and most importantly, peace of mind.

Which Firms Rate Insurance Companies?

There are several rating agencies that help consumers understand the overall financial strength of insurance companies. AM Best, Moody’s, Standard & Poor’s, Fitch, Weiss, and COMDEX are valuable resources when you’re comparing carriers.

These all use different rating metrics, but by visiting their websites, you can get a good feel for the companies you wish to compare. Many factors contribute to an insurance company’s rating including market capitalization, operating margins, assets & liabilities, reserves, surpluses, debt ratings, and the nature of their business among other items.

AM Best tends to be the company consumers turn to most, but Weiss and COMDEX provide valuable insight into company financials as well.

Request A Yearly Financial Report

Every year insurance companies are required to release their financial information from the previous year. When you’re deciding between similar well-rated companies, this information can help to make the decision. You’ll want to pay attention to data like:

  1. Market Capitalization (size of the company)
  2. Years in Business
  3. Financial Strength (surplus assets)
  4. Assets vs Liabilities
  5. Revenues (increasing vs decreasing)

The items above will tell you a lot about the overall health of an insurance company. If the numbers are improving year over year, then you can expect rating upgrades in the future.

Should I Worry About Lower Rated Insurance Companies?

Best Rated Insurance CompaniesNot necessarily. There are several B+ to A- rated insurance companies with very strong financials.

They are typically just smaller companies that are growing. AM Best and other rating agencies typically give the highest ratings to the largest companies with multi-billion dollar portfolios.

Your decision depends on the type of policy you are considering.

There is little danger to working with a smaller company when you’re purchasing a dental & vision or Medicare Supplement insurance policy.

If, however, you are investing in a large annuity policy or buying a jumbo life insurance policy, then securing a contract with an A+ rated insurance company makes sense. We take it on a case-by-case basis. Our clients will tell us what they are looking for in an insurance company.

Oftentimes, you’ll find higher interest rates or stronger benefits with lower-rated insurance companies. That’s because they are smaller and more nimble with their portfolios. The largest companies can’t always match annuity rates or death benefits simply because their portfolios are too big to capture the highest yields available.

In the end, it’s a tradeoff. There is a balance as to what rating and premium costs give you the most comfort. As an independent brokerage, we help our clients find the happy medium.

Do Ratings Affect How My Policy Is Insured?

The short answer is no. Higher ratings might better predict how likely insurance companies are to pay claims, but they don’t affect their belonging to the Guaranty Association.

Each state has its own Association. In order for a company to do business there, it must be first approved by the respective Department of Insurance. Then they are part of the Guaranty Association. This is the massive entity that provides protection in the event an insurance company becomes insolvent and fails.

Insurance Departments do not have to grant all requests for a company to sell in their State. If the company is approved, they are by default part of the Guaranty Association. Thus, your policy is insured no matter the rating of the insurance company itself.

Let’s Look At Some A + Rated Insurance Companies

Of course, the best solution is to find a highly rated insurance company offering the highest annuity rates or the lowest premiums and strongest benefits.

Highly Rated Annuity Companies

There are several strong insurers to choose from in this category. And it’s comforting to know many smaller companies grow either get purchased or have a rating increase.

Both Reliance Standard and New York Life carry A++ ratings. That’s the highest available.  Midland National, North American Life, Securian, Integrity Life, Great American, Mutual of Omaha, Lincoln, Protective, and Nationwide all have A+ ratings.

You can’t go wrong with any of these, but you’ll find competitive rates with many companies in the B++ to A rated segment as well.

The Best Rated Life Insurance Companies

Buying a comprehensive life insurance policy is a big investment in your future. It makes sense to find a highly-rated company for these policies.

Our clients like Lincoln Financial, Minnesota Life, Pacific Life, Principal, Protective Life, Prudential, John Hancock, Securian, Banner Life, and Columbus Life just to name a few. There are quite a few others with high rankings as well.

Whether it’s a term, whole, or guaranteed universal life policy, you want a stable company now more than ever. Claims have increased over the last few years, so it’s wise to choose one with strong reserves and ample surpluses.

Medicare Supplement, Advantage, and Long Term Care Insurers

There’s good news here as well. You’ll find several safe & secure carriers area available. These are companies you can count on for comprehensive coverage for the long run.

Several of our clients purchase policies with A+ rated United Healthcare, Mutual of Omaha, Allstate, Medical Mutual of Ohio, TransAmerica, USAA, State Farm, and One America State Life among others.

While many of these companies specialize in Medicare Supplement insurance, they also provide ancillary coverage like dental and vision as well. It’s nice when you can bundle all of your policies with one, well-rated company.

Contact Us To Discuss Your Options

There are nuances to almost all insurance policies. You don’t always want to shop on rating alone, but it’s a very important part of the equation. This is true when you are investing in annuity policies or purchasing a large life insurance or long term care plan.

That’s why it’s important to work with an independent brokerage like ours. We can help you compare highly-rated A+ rated insurance companies offering the best rates and benefits.

Request An Insurance Consultation

Category: Uncategorized

What is the Difference Between Medicare Supplement F, G, and N

doctor going over information with a patientToday we are going to look at the differences between the most commonly used Medicare Supplemental Insurance Plans F, G and N.

There is a lot of confusion about Medicare Supplemental Insurance F, G and N options, also called Medigap Insurance. The Hyers and Associates team members work with these plans every day. Some policies provide better value over the long run – so it’s crucial to understand the nuances of each.

Understanding the Basics of Medicare Plans F, G and N

Medicare Supplemental Insurance, also called Medigap insurance, will pay out of pocket expenses remaining after Original Medicare (Parts A & B) have paid their portion of your healthcare claim. If you are a Medicare Advantage member you do not need, nor can you have, a supplemental plan.

When initially signing up for Original Medicare, insurance companies must accept your request for insurance, regardless of pre-existing conditions. If you do not obtain a Medigap policy when you are signing up initially for Original Medicare you can later be denied. After your initial sign-up, insurance companies may require medical underwriting for pre-existing conditions. This means you can be turned down.

Medigap plans that are sold under the same letter designation are required to provide the exact same specific and identical benefits. The policies are sold by various private insurance companies that may charge different rates, but the coverage is identical. Let’s take a look at what’s similar and different between these three most commonly purchased plans.

Medicare Supplement Plan F

Medigap Plan F provides more comprehensive coverage than any other Medicare Supplemental Plan. This tends to make it more expensive than other plans, however, check with various insurance companies before assuming that. There is also a high deductible Plan F that has a higher out of pocket amount before coverage kicks in.

With high deductible Plan F you’ll pay all out of pocket Original Medicare costs until you reach a designated amount ($2300 in 2019) before your policy coverage kicks in. The advantage of choosing a high deductible plan is lower monthly premiums than the regular Plan F.

Plan F benefits include the following:

    • Medicare Part A deductible
    • Medicare Part B deductible
    • Medicare Part A coinsurance and hospital costs
    • Medicare Part B coinsurance or copayment
    • Medicare Part B excess charges
    • Medicare Part A hospice care coinsurance or copayment
    • First three pints of blood
  • Foreign travel emergency coverage (per the plan limits)

Plan F usually provides the most help with Original Medicare costs, especially if you see a doctor frequently.

Medicare Supplement Plan G

Medigap Plans G and F cover all the same benefits with the exception of Medicare Part B deductible ($185 out of pocket in 2019). Medigap Plan G and F are the only plans to cover Medicare Part B excess charges caused by non-participating Medicare providers. Non-participating providers are allowed to charge up to 15% more than what Medicare normally permits, which you are responsible for paying.

Medicare Supplement Plan N

Medigap Plan N is identical to Plan F, with the exception of for paying these out of pocket expenses:

    • Medicare Part B deductible (just like Plan G)
  • Medicare Part B excess charges (different than G & F)

The other difference with Plan N is copayments. Routine office visits (up to $20 copay), and emergency room visits (up to $50) if you’re not admitted as an inpatient to the hospital are required.

Give Us a Call For More Information

If you have any questions regarding Medigap F, G and N policies the team at Hyers and Associates is here to help. We work with a wide range of insurance companies and can help you sort through various options available.

We can also help you find a Medicare Part D prescription provider. Insurance is what we do every day, so let us help you find the best decision that fits you. Contact us today with your questions. 

Category: Medicare Supplements, Uncategorized

What Drugs Are Covered Under Medicare Part D Insurance Plans?

Many people rely on prescription drugs for their well-being, such as heart medications and psychiatric prescriptions. Being forced to go off these medications could lead to life-altering situations. And patients have valid concerns about the extent of their prescription coverage. But once you’re age 65 and eligible for Parts A and B, you need to find out more about drug coverage under Medicare Part D.

Legitimate Medications Matter

Failure to find the right coverage puts patients in a desperate situation. Some order online from fly-by-night companies. And others use medication from friends or family with similar health conditions. Plus, some patients leave the state or country to buy meditations.

However, none of these drugs is reliable and safe. As a result, patients can get injured or die from using them. Never take risks with your prescription drugs. Policy choices exist once you’re Medicare eligible that will help you cover the cost of your medications.

Medications Become Costly

Another issue for people who depend on medication is the rising cost of certain prescription drugs. And for older people on a fixed income, these costs can be difficult to cover. The price could mean choosing between buying monthly prescriptions or putting food on the table. An insurance agent helps people facing this type of crisis. And it takes searching to find the right Medicare Part D coverage. But supplemental plans are available to get the highest level of coverage.

Medicare Drug Plans Are Different

Some people believe all Medicare drug plans provide the same coverage. But there are different options, and each has its unique benefits. Working with a licensed insurance agent can reduce the confusion. An experienced pro knows to help people find the right plan for their individualized needs.

Plans vary in what they cover year in and year out. You should almost always check your options every year during the Annual Election Period (AEP) which runs from October 15th through December 7th. For most consumers, this is the only time they can change drug plans. Changing plans can reduce premiums, lower or eliminate copays, and avoid annual deductibles. Those who haven’t shopped their Part D drug plan for several years could be overpaying by several hundred dollars.

It’s also very important to make sure you’re using a in-network pharmacy. Almost all Part D drug plans offer better prices at their preferred pharmacy where they have negotiated lower rates. One of the biggest (and most easily correctable) mistake Medicare beneficiaries make is buying their drugs from an out-of-network or non-preferred pharmacy. Consumers should always make sure they are using the best pharmacy – either by mail order or in-person.

Find Out About a Formulary

Each Medicare plan provides a specific list of covered drugs. And this list is called a formulary. In most of these lists, drugs appear in different tiers. And the drugs in each one have various costs. For example, a drug on a lower tier is likely to cost less than one put in a higher one.

Some drugs can be in one tier one year and then a higher tier the next. This results in higher copays and/or needless exposure to deductibles. A good agent can tell you where you are leaving money on the table. This savings can help many to stay with the prescriptions that give them the best results.

Working With Prescribers

When a patient discovers they must take a drug on a higher tier, the cost can be more than expected. But there are ways to reduce this cost potentially. Discuss your needs with a doctor or prescriber. While they might believe you need a drug on a higher tier, there could be a reasonable substitute.

For many, generic drugs are also a viable option. Find out if a different medication is a possible solution. Many consumers come on to Medicare only to realize that name brand drugs are very costly where a generic substitute can offer the same efficacy at a fraction of the cost.

And you should also know that some drugs fall under Medicare Part B. These are drugs that are administered at a doctor’s office – usually they are injections or administered intravenously. This means that Medicare and your supplemental insurance will cover the cost. This is why it’s a good idea to have a comprehensive Medicare supplement along with your chosen drug plan.

Necessary Drugs

In certain situations, there might not be a substitute for a high-cost prescription. However, you or your prescriber can ask your Medicare Part D provider for a tier exception. The result would be a lower copayment for the patient. Often this is the best way for people to cover the costs of medications they need to maintain good health.

There are several ways to reduce the costs of expensive medications by working with your doctor, your Medicare plan provider, the drug manufacturer and the State where you live. There are several programs designed for those who fall in certain income levels.

Changes To the Medicare Formulary

Sometimes a Medicare drug plan makes changes to its formulary throughout the year. Changes occur within the guidelines established by Medicare. However, if the change involves a drug you are taking, the plan must follow specific steps.

First, they must send written notice of the change to you within 60 days before the change become effective. Next, when you request a refill, a notice of the change must be issued with a 60-day supply of the drug under the same plan rules that existed before the change. If you encounter this issue, then it’s a good idea to work with your doctor to see what other options might be available.

How To Get the Coverage You Need

Consult with your insurance agent about changes. Work each year to review the formularies of Medicare Part D plans to find one that offers the best prices. Contact your doctors and prescribers to find out more about alternatives. With some work, patients can get the coverage they need to get the right prescription drugs.

Thank you for reading our blog! How can we help you? Contact us today.

Category: Uncategorized

How Much Is The Obamacare Penalty?

Our insurance agency has received several inquiries about the upcoming Obamacare penalty amounts for those who do not purchase health insurance.  It is important to understand how these penalties will be enforced and ways to avoid them.

The penalties will vary for singles and for families and can, for some, end up being a portion of their income.  Those who are caught off guard by the Obamacare penalties can end up owing much more that what they might have anticipated.

How Much Is The Obamacare Penalty For 2016?

The penalty for those who do not purchase health insurance will vary. In other words, contrary to what you may have heard or read, it is not necessarily a flat rate. And the amount will increase year over year as well.

  • The penalty for individuals will be $695 or 2.5% of your gross income – whichever is greater
  • The family penalty will be the same $695 per person – plus $347.50 per child up to a maximum of $2,085 – or 2.5% of your income – whichever is greater

The piece of this legislation that is not getting enough attention is the percentage of income clause.  For reasons unknown to us, no one has really sounded the alarm on this issue.

If you are a self-employed with significant income, you should strongly consider purchasing health insurance if you don’t already own coverage.  Multiply your income by .025 and you can see how much this new law might cost you.

Does The Obamacare Penalty Increase Year Over Year?

In a word, yes.  The penalties as they are drawn up now will increase each year through 2016.  By 2016, the Obamacare penalty for not purchasing health insurance will be $695 for an individual or 2.5% of income – whichever is greater.  That could be a sizable tax penalty for high earning individuals and families.

As contentious as this legislation is, it would not be surprising to see changes over the next few years, but if the law is not amended or postponed, then then individual mandate (and penalties) will continue to be enforced by the IRS.

(It should be noted that there will be many who purchase insurance on the exchanges who will qualify for a premium subsidy.)

How Will The Obamacare Penalties Be Enforced?

The IRS will enforce the Obamacare penalties through tax return information.  If you file a return each year, it is our understanding that there will be a place to provide proof of insurance.

If you do not have proof of insurance, then your penalty will be applied.

In other words, the IRS could garnish your end of the year tax refund should you be owed a rebate.  If you’re not due a refund, then it is somewhat unclear how the IRS would enforce the penalty.

Needless to say, the tax enforcers will find a way.  That’s their job – to enforce tax laws.  Those who run afoul of the law will likely receive correspondence of some kind.

And it may be likely that those who owe more than $695 (due to the 2% income rule) would be a higher priority for the IRS than those will smaller penalties.  If you don’t file a tax return, the IRS may not find you right away – or at all.  That story is yet to be told.

Avoid Healthcare Reform Penalties – Contact US

There are several ways to avoid the upcoming Obamacare penalties – some less expensive than others. Our independent insurance agency can help you through your options.

We are offering health insurance on and off the exchanges and can help you to remain compliant with the law. Contact us today for more information.

Category: Health Care Reform, Health Insurance, Uncategorized

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