The 11 Worst Insurance Companies
The insurance industry in America makes a staggering $1,000,000,000,000 annually from premiums, according to the American Association for Justice . Yes, that is ONE TRILLION dollars.
The AAJ compiled a list of the worst insurance companies in the United States by examining thousands of records about the companies, including court documents, FBI records, and testimony from former insurance employees. Their research identified the companies that work against the clients that need them the most by rejecting claims, denying coverage, and jacking up premiums.
While this list stems from the opinions of AAJ researchers, experience handling countless insurance claims for injured clients leads our legal team to agree with the list. We also have had dealings with other insurers outside the AAJ list that use questionable tactics to minimize and avoid paying valid claims.
If you were in a car accident and are fighting with one of these insurance companies, you need to know that they are not on your side. They use proven tactics to get you to settle for a tiny fraction of what you really need to recover financially from your injuries.
The following list contains the 11 WORST insurance companies in America:
What Are The Biggest Health Insurance Companies
The biggest health insurance companies in the United States include well-known insurance providers. Many of these companies offer similar products, but some tend to specialize in additional products such as Medicaid and Medicare. Below, we break down the largest health insurers by market share, by membership, by revenue and by state.
Best And Worst Health Insurance Companies In The United States
Some states in the United States are known to be more likely to have fewer chances of having a health insurance policy. The rate of infant mortality is twice as more as high in the thirteen states of the United States as in Vermont. The child immunization rate of children is the lowest in the state of Georgia. Therefore, its vital for you to know which are the best and worst insurance companies in USA.
The United States has been a victim of the low quality of its healthcare system. The citizens of America mostly end up having to pay huge debts due to health care policies and lack of insurance.
Health insurance policies are there to cover for you in the worst of times. Its like an assurance you have for yourself your family that if things go bad there will be financial coverage. It helps to reduce the costs that you suffer at such times and to make sure you come out of it without having to face devastation. By comparison of all the companies, a contrast can be made, and suitable coverage can be decided based upon the benefits and the financial viability.
Important things to consider before getting insurance
1. Financial affordability is important but more important is what plan would suit your needs.
2. Always look at the rating services of a company before picking a plan.
3. If you travel a lot then pick a plan that has access to a variety of doctors.
Comparison of 3 best healthcare companies
Blue Cross Blue Shield
Who Are The Top 5 Health Insurance Companies
Based on Insure.com’s customer satisfaction survey, the five top-rated health insurance companies for 2021 are:
- Kaiser Permanente
- Florida Blue
Insure.com’s ninth annual Best Health Insurance Companies survey asked more than 2,200 people about their health insurance companies.
We asked their thoughts about their health insurer overall and drilled down into subjects like:
- Whether they recommend the company
- Whether they plan to renew with the insurer
For instance, you want to make sure the insurer pays claims promptly. Otherwise, you might get unexpected medical bills. And customer service can allay your fears when youre having issues with your plan.
Make sure to check out whether members recommend plans and if they expect to renew coverage. Those are key markers to show a persons satisfaction with their company and plan.
Health Insurance Company Ratings
In the health insurance industry, a variety of rating agencies evaluate health insurance companies every year based on factors that include financial strength, customer reviews and policyholder complaints. You can use these metrics to evaluate providers and choose the best insurance company for you. The most common third-party ratings for insurance companies include:
- J.D. Power: J.D. Power is a global marketing information services company that ranks some of the best insurance companies on customer satisfaction. Its rankings give each insurer a number between 0 and 1,000 and use rating factors such as price, customer satisfaction, policy offerings and interaction.
- A.M. Best Financial Strength Rating: A.M. Best is a credit rating agency that gives health insurance companies a financial health score. A++ or “Superior” is the top grade available. Usually, any company above A- is in an above-average financial situation.
- Better Business Bureau : The BBB rating system is a grade given to a company between A+ and F, which is determined by its complaint history and how responsive the company is to complaints.
Checking company ratings and customer evaluations can help you understand what the company values and how it stacks up against its competitors. Then, you can get quotes from these companies to decide which one makes sense for your situation.
What To Look For In The Best Health Insurance Companies
As we mentioned earlier in our guide, there are several things to keep in mind when choosing from the best health insurance companies in America. The most important of these criteria are the financial strength of the provider and the health insurance plans on offer. However, perhaps the most useful factor to you, a potential customer, is the user reviews from existing customers.
You can easily locate these through companies that aggregate verified user reviews, such as the Better Business Bureau, and they will give you a good insight into what its like being a customer of the health insurance company youre thinking of signing with.
Other criteria to keep in mind include specific policy offerings, as well as the claims service. Some of the best health insurance companies are so rated because they make the claims process easier. In contrast, other health insurance providers may offer cheaper plans but the claims process is overly complex.
Based on our experience, this is what to look for when choosing from the best health insurance companies:
- Does the provider operate in your state / where you live?
- What is the financial strength rating of the provider?
- Is the company well-rated by existing customers?
- Does it have an easy to understand claims process?
- Does the company have a clear plan pricing policy?
- Are you able to obtain a hassle-free quote?
- Does the company offer a broad range of health insurance plans?
Home Health Care Services Coverage
Health insurance may cover the cost of home health care services for people who require them.
- Full-time aide: If a patient needs a full-time health care worker to assist with basic self-care, the health insurance plan may cover the cost of the aide.
- Visiting nurse: Some insurance policies cover the cost of a visiting nurse who checks with a patient at home on a regular schedule, such as a daily or weekly.
- Home health care equipment: Some health plans cover the cost of equipment such as rails on bathtubs or blood sugar testing apparatuses that allows patients to manage their health care condition at home.
Read Also: Starbucks Medical Insurance
Key Health Insurance Numbers To Consider
Average bronze-level health insurance plan: $2,570 per year for individual insurance.
$325 per adult and $162.50 per child , or 2 percent of your household income, above the tax return filing threshold for your filing status whichever is greater.
Cost of non-subsidized, individual health insurance: $300 – $600 per month, or $3,600 – $7,200 per year.
How Much Does Health Insurance Cost
Health insurance consists of several different costs. A health insurance premium is an amount you pay your insurance provider each month, whether you go to the doctor or not.138 A deductible is the amount you pay when you receive covered healthcare services before your insurance kicks in.139 High-deductible plans require you to pay a higher deductible than other types of plans. Coinsurance is a percentage of covered health services that you must pay for while the insurer pays the rest.140 A copayment is a set amount you pay for covered services once your deductible has been reached.141
Health Insurance Shopping Tip
The plan youll need depends, in part, on how you use healthcare services. If you have a chronic condition and visit the doctor regularly, youll likely need a different type of plan than if you only have preventive care appointments.
Do You Need Health Insurance If You’re Healthy
If you find yourself unable to remember the last time you were in a doctors office and think you dont need health insurance, think again. You should definitely have health insurance, and there are plans that are cost effective for healthy people. For example, you can opt for a high deductible health insurance plan you pay more for things like doctor visits, but you pay less overall for your health insurance plan.
This is ideal if you only go to the doctor once or twice a year. These plans also work well in partnership with flexible spending accounts or health savings accounts . You can put pre-tax dollars into these accounts and use the money later on medical expenses.
Even if you consider yourself healthy, its important to see a doctor on occasion for a checkup. U.S. News and World Report says if you can’t remember the last time you went, it has definitely been too long. You should also go for a checkup if anything has changed since the last time you saw a doctor.
Are you coughing more than usual? Is that mole bigger? Even minor things can reflect larger underlying health problems. The earlier you catch any health problem, the better. An annual checkup can help with that. There are also age-related milestone checkups you shouldn’t skip like an annual mammogram for women starting at age 40 or a colon cancer screening starting at age 50.
Its All About You We Want To Help You Make The Right Legal Decisions
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesnt influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UnitedHealth, one of the nations largest health insurers, was ranked one of the ten worst insurance companies in America by the American Association for Justice for its bad faith insurance practices. To learn more about the AAJ report which names the 10 worst insurance companies in America, click here.
UnitedHealths bad faith insurance practices
According to the AAJ report, UnitedHealth has been accused of bad faith insurance practices, such as:
FreeAdvice.com survey: 65% of UnitedHealth customers very unsatisfied
According to customer satisfaction ratings on FreeAdvice.com, 65% of UnitedHealth customers are very unsatisfied with the insurer. Heres how survey respondents rated the insurer:
Extremely Satisfied: 8%Very Unsatisfied: 65%
Customers posted the following comments about UnitedHealth on the website:
Why Do People Complain About Health Insurance
For being such a valuable and useful tool, health insurance tends to get more than its fair share of complaints levied against it. First and foremost, people have a hard time finding health insurance for cheap. Between premiums, copayments, deductibles and other fees, people might feel like health insurance costs them more than it saves. Coupled with the cost, many people complain that the complicated nature of health insurance makes it difficult to even compare prices between plans fairly.
Another complication of health insurance that draws complaints involves the large forms that need to be filled out when you apply for coverage. Unfortunately, the nature of health insurance makes insurers require a lot of personal information up front, hence the long application.
Another complaint about health insurance is that its too difficult to find a good company or good policy. This can be true, especially if you dont get health insurance through Medicare or through your employer. Still, good companies are out there- you just have to be diligent and search for them. You have plenty of health insurance options!
Top 5 Health Insurance Companies In The Us
You probably already know that health insurance companies make up a massive segment of the U.S. economy, but you may not realize just how big a segment.
In fact, the health and medical insurance industry in the United States is a $1.1 trillion dollar enterprise currently, and one that has grown 2.9 percent each year on average between 2015 and 2020.
And if you were pressed, you could probably name a half dozen or so health insurance companies. But there are likely far more health insurance providers than most of us realized.
In fact, according to data at ValuePenguin.com,
In the United States, there are currently more than 900 health insurance companies that offer medical coverage. However, the health insurance industry is dominated by five companies: Anthem, UnitedHealthcare, Humana, Health Care Service Corporation and CVS Health Corp., who control more than 38% of the market.
What The Health Plan Star Ratings Are Based On
A plan’s overall rating is based on 3 categories, each with its own star rating:
- Member experience: Based on surveys of member satisfaction with:
- Their health care and doctors
- Ease of getting appointments and services
All health plan ratings are calculated the same way, using the same information sources.
Kaiser Permanente: Best Health Insurance Company For Customer Service
Kaiser Permanente stacks up well against its peers, with relatively low premiums easy quotation process, straightforward websites and a well-liked mobile app. The lack of nationwide coverage could be a drawback for some people, even if they live within the coverage area and Kaiser Permanente is definitely one of the more localized health insurance providers.
However, it performs well and has a consistently high level of customer satisfaction, and it is well worth considering for potential customers in those regions and states where it is operational. Kaiser Permanente scored the highest ratings possible in customer satisfaction during the 2017 Health Insurance Plan Study run by JD Power and Associates. Kaiser ranked the highest in six regions, Maryland, South Atlantic, California, Virginia, Northwest and Colorado.
How Do I Obtain A Health Insurance Quote
If your employer does not offer an affordable health insurance option and you do not qualify for subsidized insurance or Medicare, you can shop the open market for medical insurance. The health insurance companies we reviewed will allow you to request a quote online rather easily. Premium rates vary significantly by multiple factors. You’ll learn that the monthly rates increase quite a bit as you age. Smoking also increases the premium rate. In most cases you can select non-smoking if you have not smoked in over six months.
Services such as eHealthInsurance are simple to use and provide a variety of quotes but may not always show every option available. You may find more plan options by requesting plan information directly from the insurance company’s website. Before purchasing new insurance it is always a good idea to ensure that your preferred doctor accepts the insurance you are looking to purchase. While your doctor may be listed on the insurance company’s website, it is smart to call your doctor’s office directly to verify.
Even if the open-enrollment period has passed for signing up for insurance via one of the exchanges, you might still be able to purchase subsidized insurance if you’ve had a qualifying life event. Qualifying events include moving to a new state, change in income, change in family, loss of coverage and others.
Top 5 Largest Health Insurance Companies By Membership
The largest health insurance provider can be defined as the company that has the highest number of members. Also known as covered lives, membership means the number of individuals who have enrolled in a health insurance plan with that provider. You can enroll in a health insurance policy in many different ways. For example, your employers benefit plan may offer health insurance coverage. Other ways include:
- Medicare and retirement plans
- Individual health insurance
Best For Umbrella Coverage: Humana
Health insurance policies don’t usually cover such expenses as eyeglasses and contacts or dental exams, crowns, and appliances. Humana, a broad-based health and well-being company, sells private policies in all these areas, and the company has a range of plans for people living with chronic conditions that include transitions from a hospital stay to home care and meal delivery. Humana is also among the companies that offer special needs policies for people with a severe or disabling chronic condition or living in a long-term care facility. As of 2018, Humana no longer offers individual medical plans but focuses on healthcare solutions for employers, as well as offering Medicare plans.
Four private Humana plans and three Humana Medicare Advantage plans were highly rated by NCQA. Humana led the pack for customer satisfaction among health insurers in 2020, according to data from the ACSI survey. Humana’s policies for HMOs are relatively affordable.