Most people spend a lot of time comparing Medicare Supplement premiums. They want the lowest monthly cost, which is completely understandable. But here’s what most people don’t realize until it’s too late: the company behind the plan matters just as much as the plan itself — and a company’s financial strength is what tells you whether it will still be around, still be stable, and still be paying your claims reliably 10, 15, or 20 years from now.
A Medigap policy isn’t like buying a pair of shoes. You’re making a long-term commitment to a company that needs to honor its promises for the rest of your life. Choosing one based on price alone — without checking financial health — is a little like buying a house without getting an inspection. It might be fine. But you really want to know before you sign.
The good news: checking a company’s financial strength is completely free, takes about 15 minutes, and doesn’t require any special knowledge. This guide is going to walk you through exactly how to do it — step by step — in plain English.
Key Takeaways
- Two independent tools — AM Best and the NAIC Complaint Index — give you a clear, unbiased picture of any insurance company’s financial health and customer service track record.
- AM Best grades insurance companies the same way a school grades students: A++ is the top of the class, and anything below A- deserves a hard look before you commit.
- The NAIC Complaint Index tells you how a company actually treats its policyholders. A score below 1.0 is better than average. Significantly above 1.0 is a red flag.
- Rate increase history is the third piece of the puzzle — and it’s the one most people never ask about.
- In 2025, AM Best downgraded both UnitedHealthcare (A+ to A, August) and State Farm (A++ to A+, November) — real-world proof that ratings change and should always be verified before you enroll.
- An independent broker with access to 40+ carriers uses all of this data to help you choose not just the right plan, but the right company.
Table of Contents
- Why Financial Strength Matters for a Medicare Supplement Policy
- Tool #1: AM Best — The Gold Standard for Insurance Company Ratings
- How to Look Up Any Company on AM Best (Step by Step)
- AM Best Ratings for Major Medigap Carriers in 2026
- Tool #2: The NAIC Complaint Index — How Companies Actually Treat Customers
- How to Look Up the NAIC Complaint Index (Step by Step)
- NAIC Complaint Scores for Major Medigap Carriers in 2026
- Tool #3: Rate Increase History — The Question Nobody Asks
- How to Put It All Together: A Simple Checklist
- A Note on the 2026 UHC Rating Downgrade
- Frequently Asked Questions
Why Financial Strength Matters for a Medicare Supplement Policy
Think about what a Medigap plan actually is. It’s a promise — a legal contract — that an insurance company will pay certain healthcare costs on your behalf every time you need care. That promise could stretch 20, 25, or even 30 years into the future.
A lot can happen to an insurance company over that time. Markets shift. Management changes. Risk pools age. Some companies that looked perfectly stable a decade ago are no longer around, or have been sold and restructured multiple times. The company you enroll with at 65 may look very different at 80.
Unlike car insurance — where you can switch carriers every year with no consequences — Medigap is different. Outside of specific guaranteed issue windows, switching requires passing medical underwriting. The older you get and the more health conditions you develop, the harder it becomes to qualify for a new plan if your current carrier becomes unstable, raises rates dramatically, or exits the market.
This is why vetting a company’s financial health before you enroll isn’t paranoia — it’s basic due diligence. And it takes about 15 minutes with free, publicly available tools.
Tool #1: AM Best — The Gold Standard for Insurance Company Ratings
AM Best has been rating insurance companies since 1899. They are the oldest and most trusted rating agency that focuses exclusively on the insurance industry — not banks, not corporations, not bonds. Just insurance companies.
When AM Best assigns a rating, they’re essentially asking one question: How confident are we that this company will be able to pay its claims — not just today, but for decades to come? You can look up any carrier for free at ambest.com.
To answer that, they analyze:
- The company’s balance sheet — how much cash and reserves it actually has
- Its operating performance — how profitably and consistently it’s running its business
- Its business profile — how diversified its products and markets are
- Its ability to handle economic stress — what happens if markets turn bad or claims spike
The result is a letter grade — just like school — that gives you a fast, reliable read on whether a company is financially sound.
The AM Best Rating Scale — Explained Simply
Here’s how the full scale breaks down, from best to worst:
| Rating | Category | What It Means |
|---|---|---|
| A++ | Superior | The absolute top tier. Exceptional financial strength. |
| A+ | Superior | Excellent strength, just slightly below the very top. |
| A | Excellent | Strong ability to meet long-term obligations. |
| A- | Excellent | Still strong, but at the lower end of the excellent tier. |
| B++ | Good | Financially stable but more sensitive to market stress. |
| B+ | Good | Adequate but more limited margin for adversity. |
| B | Fair | Some vulnerability to financial pressure. |
| B- | Fair | More susceptible to adverse conditions. |
| C and below | Weak to Poor | Significant financial concerns. Avoid for long-term coverage. |
| D | Poor | In regulatory trouble or near failure. |
| E | Under State Supervision | Under regulatory action. |
| F | In Liquidation | Company is being wound down. |
For a Medicare Supplement plan, the minimum you should consider is A- (Excellent). Most strong Medigap carriers sit at A, A+, or A++. If you’re looking at a carrier rated B++ or lower, that’s a serious conversation to have with your broker before proceeding.
One important nuance: large insurance groups often have multiple subsidiaries, and each subsidiary can have a different rating. When you look up a company, make sure you’re checking the specific entity that will actually be underwriting your policy — not just the parent company’s overall rating.
How to Look Up Any Company on AM Best (Step by Step)
This is completely free. No account required.
Step 1: Go to ambest.com
Step 2: In the search bar at the top, type the name of the insurance company you’re researching. For example: “Mutual of Omaha” or “Aetna Health” or “United American Insurance.”
Step 3: In the search results, look for the company name and click on it. You may see multiple results if the carrier has several subsidiaries — select the one that matches the entity on your policy or quote.
Step 4: Look for the Financial Strength Rating (FSR). This is the letter grade — A++, A+, A, A-, etc. — that tells you how financially sound the company is.
Step 5: Note the Rating Outlook as well. Ratings can be listed as “Stable,” “Positive,” or “Negative.” A negative outlook means AM Best has concerns that could lead to a downgrade. A positive outlook means an upgrade may be coming.
That’s it. You now have an independent, professional assessment of that company’s financial health.
One important tip: Always verify the current rating directly on AM Best’s website — don’t rely on what a company prints in its own marketing materials. Companies sometimes display outdated ratings. Ratings change, and the most recent one is what matters.
AM Best Ratings for Major Medigap Carriers in 2026
Here’s a quick reference for some of the most commonly considered Medigap carriers. These are verified from publicly available sources as of 2026:
| Carrier | AM Best Rating | Category |
|---|---|---|
| State Farm | A+ | Superior |
| USAA | A++ | Superior |
| Mutual of Omaha | A+ | Superior |
| AARP / UnitedHealthcare | A | Excellent |
| Aetna (CVS Health) | A | Excellent |
| Anthem / BCBS affiliates | A | Excellent |
| Physicians Mutual | A | Excellent |
| Wellabe (formerly Medico) | B+ | Good |
Important 2026 update: AM Best downgraded UnitedHealthcare’s insurance subsidiaries — including the entity that underwrites AARP Medicare Supplement plans — from A+ (Superior) to A (Excellent) in 2026. They remain a financially sound company with a stable outlook, but this is a real-world reminder that ratings are not permanent. Always verify current ratings rather than relying on what you heard or read previously.
Wellabe’s B+ rating is worth noting. While they have generally shown more stable rate histories than some larger carriers, their financial strength rating is a notch below the “Excellent” threshold I’d recommend for a long-term Medigap commitment. This doesn’t make them a bad choice necessarily — but it’s a data point worth knowing.
Tool #2: The NAIC Complaint Index — How Companies Actually Treat Customers
AM Best tells you whether a company is financially strong. The NAIC Complaint Index tells you something different but equally important: how does this company actually behave when you need them?
The National Association of Insurance Commissioners — the NAIC — is the organization that brings together all 50 state insurance regulators. They track every formal complaint filed against every insurance company in the country and publish the data publicly at content.naic.org/consumer.
The Complaint Index they publish is clever because it levels the playing field between companies of very different sizes. A huge company like UHC naturally gets more total complaints than a small regional carrier just because they have more customers. The Complaint Index accounts for that by measuring complaints relative to market share.
How to Read the NAIC Complaint Index
1.0 = the national average. A company with a score of exactly 1.0 is receiving exactly as many complaints as you’d expect given its size — no better, no worse.
Below 1.0 = better than average. A score of 0.50 means the company receives half as many complaints relative to its size as the average company. That’s a good sign.
Above 1.0 = worse than average. A score of 2.0 means the company receives twice as many complaints as expected for its size. That’s a meaningful red flag.
Near 0.0 = exceptional. Very few complaints for their market size. This is what you want to see.
The complaints tracked include things like:
- Claim denials
- Claim processing delays
- Billing problems
- Cancellation disputes
- Poor customer service
These are exactly the kinds of issues that make life miserable when you’re trying to use your coverage. A high complaint score means that many policyholders — real people, not just online reviewers — were unhappy enough to file formal complaints with their state insurance department. That takes effort. When people do it in significant numbers, it tells you something important.
How to Look Up the NAIC Complaint Index (Step by Step)
Also completely free. No account required.
Step 1: Go to content.naic.org/consumer (or simply search “NAIC consumer insurance search” in Google)
Step 2: Click on “Company Search” or “Consumer Insurance Search”
Step 3: Type in the name of the insurance company you’re researching
Step 4: Select your state from the dropdown menu
Step 5: Look for the Medicare Supplement line of business — you want the complaint data specific to Medigap, not the company’s overall complaint score across all their products
Step 6: You’ll see the Complaint Index — the number relative to 1.0 — along with the number of complaints filed
Step 7: Look at data across the past 2 to 3 years, not just the most recent year. A single good year doesn’t tell you much. A consistent pattern over several years tells you a great deal.
NAIC Complaint Scores for Major Medigap Carriers in 2026
Here’s a reference table based on publicly available data. Note that scores can shift year to year and vary by state, so always verify current data directly on the NAIC site:
| Carrier | NAIC Complaint Index (approx.) | What It Means |
|---|---|---|
| State Farm | ~0.48 (Medicare Supplement line) | Significantly below average — excellent |
| Mutual of Omaha | ~0.52 | Well below average — excellent |
| AARP / UnitedHealthcare | ~0.68 | Below average — good |
| Aetna | ~0.74 | Below average — good |
| Anthem / BCBS (varies by state) | Varies | Check your specific state affiliate |
What stands out here is that even the “big name” carriers — UHC and Aetna — score well on complaint ratios. Their issue isn’t customer service or claims handling; it’s premium cost and rate increase patterns. This is why you need all three data points, not just one.
Tool #3: Rate Increase History — The Question Nobody Asks
AM Best and the NAIC give you two powerful, free data points. But there’s a third piece of the puzzle — and it’s the one most people never think to ask about until they’re sitting with a renewal notice that jumped 18% in a year.
Rate increase history.
Unlike AM Best ratings and NAIC complaint scores, this data isn’t consolidated in one public database you can look up yourself. State insurance departments file and approve rate increase requests, but pulling that data across multiple carriers and multiple years takes real legwork.
This is where a truly independent broker — one who works exclusively in Medicare and represents 40+ carriers — earns their value. They track this data. They know which carriers in your specific state have filed consistent 3% to 5% increases over the past five years and which ones filed a 4% increase for three years and then hit policyholders with a 19% correction.
The question to ask any agent you speak with:
“What has been this company’s average annual rate increase in my state for the last three to five years?”
If the agent can’t answer that question — or tells you they don’t have access to that information — that’s a meaningful red flag about the agent, not just the carrier. A Medicare-only independent broker with real experience will have this data and share it without hesitation.
Rate increase history combined with AM Best and NAIC data gives you a three-dimensional picture of any carrier — their financial strength, their customer service track record, and their pricing behavior over time.
How to Put It All Together: A Simple Checklist
Before enrolling with any Medicare Supplement carrier, run through this checklist:
AM Best Financial Strength Rating
- Is it A- or better? (Required)
- Is the outlook Stable or Positive? (Preferred)
- Did you verify the current rating directly on ambest.com? (Not the company’s marketing materials)
NAIC Complaint Index
- Is the score below 1.0? (Good)
- Is it consistent over the past 2 to 3 years? (Look for patterns, not single-year anomalies)
- Did you check the Medicare Supplement line specifically at content.naic.org/consumer — not the company’s overall score?
Rate Increase History
- Has your broker provided 3 to 5 years of rate increase data for this carrier in your state?
- Is the history consistent and modest — or does it show big swings?
- Is this an open block of business adding new, healthy enrollees? Or a closed block aging in place?
The Subsidiary Question
- Are you checking the specific entity underwriting your policy — not just the parent company?
- Large insurance groups often have multiple subsidiaries with different ratings.
How Long Has This Company Been in the Medigap Market?
- Companies with long track records in Medicare Supplement have more data to evaluate.
- Newer entrants may offer very competitive pricing to grab market share — which can look attractive today but carries more uncertainty about long-term behavior.
A Note on Two Major 2025 Rating Downgrades
Both of the most-discussed Medigap carriers saw AM Best rating actions in late 2025 — and most consumers have no idea. This is exactly why verifying ratings directly matters.
UnitedHealthcare (AARP): In August 2025, AM Best downgraded UnitedHealthcare’s insurance subsidiaries from A+ (Superior) to A (Excellent), with the outlook revised to stable. The reason: a significant deterioration in operating performance, with UHC projecting an additional $6.5 billion in medical expenses for full-year 2025, heavily concentrated in Medicare Advantage. They remain financially sound — an A (Excellent) rating is still strong — but it’s a meaningful change from where they were just a year ago.
State Farm: In November 2025, AM Best downgraded State Farm’s Financial Strength Rating from A++ (Superior) to A+ (Superior). The downgrade was driven by adverse underwriting losses in their auto and homeowners lines — five consecutive years of underwriting losses — not by anything related to their Medicare Supplement business specifically. State Farm’s balance sheet remains assessed at the “strongest” level by AM Best. They are still an excellent Medigap carrier from a financial strength standpoint, but they are no longer the A++ standard-bearer they once were.
Both companies remain strong choices from a pure financial stability perspective. But both downgrades illustrate the same core point: ratings change, and the number a carrier printed in their brochure last year may not be the number today. Always verify directly at ambest.com before enrolling.
Frequently Asked Questions
How often do AM Best ratings change? AM Best reviews ratings on an ongoing basis and can update them at any time when material changes occur. Significant events — like corporate restructuring, major financial losses, or shifts in market position — can trigger a rating review. It’s worth verifying a rating before you enroll, and then checking back every few years during your coverage. The 2026 UHC downgrade is a good example of why ongoing awareness matters.
Is AM Best the only rating agency I should check? AM Best is the gold standard specifically for insurance companies — it’s what virtually every Medicare expert uses. There are other rating agencies (S&P, Moody’s, Fitch) that also rate insurance companies, and checking them as a secondary reference is not a bad idea for extra peace of mind. But AM Best is the primary one to know and use for Medigap decisions.
What if the company I’m looking at isn’t rated by AM Best? This is actually itself a red flag for a long-term policy like Medigap. Most legitimate, established Medigap carriers are rated by AM Best. If you can’t find a rating, ask the agent why, and proceed with caution. An unrated company is one you have essentially no independent financial visibility into.
Does a low NAIC complaint score guarantee good customer service? It’s a strong positive indicator but not a guarantee. The NAIC tracks formal complaints filed with state insurance departments — which takes real effort by a real person who is genuinely unhappy. A low score means relatively few people went to that level of trouble. That’s meaningful. But online reviews, agent experience, and anecdotal feedback from other agents in the market can add texture to the picture.
Can I do all of this research myself without a broker? Absolutely — and this guide gives you everything you need to look up AM Best and NAIC data on your own. The one piece that’s harder to do independently is rate increase history, which requires access to state-level rate filing data that isn’t consolidated in one place. That’s where a good independent broker adds genuine value that’s hard to replicate on your own.
Why does it cost me nothing to use an independent Medicare broker? Independent Medicare brokers are compensated by the insurance company when you enroll. Your premium is identical whether you use a broker or go directly to the carrier — there’s no markup or fee. What you gain is access to 40+ carriers, professional analysis of AM Best ratings, NAIC data, and rate increase histories, and someone who works for you — not for any single insurance company.
How do I know if a broker is truly independent? Ask directly: “How many carriers do you represent, and do any of them pay you differently than others?” A truly independent broker represents a wide range of carriers and discloses compensation transparency without hesitation. If an agent only shows you two or three options, or seems to consistently steer toward one carrier regardless of your needs, that’s worth questioning.
The Bottom Line
A Medicare Supplement plan is one of the most important financial decisions of your retirement. And the company you choose matters as much as the plan letter.
The good news is that you don’t have to guess. Three free tools — AM Best, the NAIC Complaint Index, and rate increase history from an independent broker — give you everything you need to make a truly informed decision.
The checklist is simple:
- A- or better on AM Best — confirms the company has the financial strength to honor its promise for the long term
- Below 1.0 on NAIC — confirms the company treats its policyholders well day to day
- Stable, consistent rate increases — confirms the company prices responsibly and won’t blindside you with a 20% spike in year four
Get all three, and you’re making a decision with your eyes open.
If you’d like help running this research for the carriers available in your area — or just want someone to walk you through it — I’m happy to do that at no cost. With 18+ years of Medicare-only experience and relationships with 40+ carriers, this is exactly the kind of analysis I do with every client I work with.
Call 631-358-5793 or visit paulbinsurance.com to schedule your free consultation.
Paul Barrett is the founder and Principal Agent of The Modern Medicare Agency, a Medicare-only independent brokerage based in Melville, NY. With 18+ years of Medicare-exclusive experience, licensure in 34 states, and relationships with 40+ carriers, Paul has helped 5,000+ clients navigate Medicare with clarity and confidence. He is the author of Medicare Mastery Unlocked.
