Choosing a Health Insurance Carrier

Many people search for health insurance from a specific company because of recommendations, consumer reviews, plan options or past personal experience. There are a number of factors you should consider in your search for the right medical insurance plan and the provider is probably one of the most important. Although the rates that health insurance companies can charge for particular health plans is regulated by the state, a health insurance provider can still standout from the competition by creating innovative "products" that cater to different market segments. Many companies create health plan offerings that cater to specific market segments, like students and the self-employed, by packaging only those benefits that matter to the segment and pricing the plan competitively.

You will also need to make sure that the insurance company you are interested in offers health insurance in your state. Most major providers, such as Blue Cross and Blue Shield, offer products in all 50 states, while others have more limited offerings. There are definitely benefits from choosing a company with a broader national reach if you travel around the country, even if it is just a couple times a year for vacation. A health insurance company that offers coverage nationally is more likely to have network doctors outside of your home state to handle emergencies should they arise while you are traveling.

Health Insurance Carrier Research

It is important to find a policy backed by a reputable insurance company that provides quality coverage for you, your family, or your employees. Purchasing a health insurance plan or policy means you are buying an insurer's promise. This promise is essentially a contract between you and the insurer to make the payments specified in the policy if you incur covered medical expenses.

In order to fulfill its contractual obligation, the insurance company must be able and willing to pay the claim. Financial stability is a good measure of an insurance company's ability to pay the claim. A.M. Best Company, Weiss Research, and Standard & Poor's are some of the major financial publishing firms that investigate and report their findings on the financial standing of specific insurance companies. These reports can be expensive. However, they are often available in the reference sections of business, public libraries, and the firm's own website. Ask your agent for information or call or write the company's home office and ask for a copy of its most recent annual report or a report from a rating firm.

Another good source of information is your state insurance department, because they regulate insurers and collect information about the number of complaints received about a particular insurance company. Local consumer groups, newspaper columnists, and Better Business Bureaus may have additional information.

It is important to find out if the company and agent are licensed to do business in your state. Your state insurance department is the source for this information. It requires the companies it licenses to file yearly financial reports, maintain legally required reserve funds, undergo periodic inspection audits, and comply with state laws regarding fairness.

Health Insurance Provider Profiles

Carriers that we currently provide additional information on:

• Aetna
• Blue Cross
• Blue Shield
• Cigna
• Conseco
• Health Net
• Imerica
• Kaiser
• Nationwide
• Oxford Life
• PacifiCare
• United American
• United Healthcare

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