We've just moved to a new city and are trying to choose an insurance plan. There are several that look like they'll fulfill our needs, but I'm worried we'll end up in a plan that's badly managed or has poor customer service or is hard to deal with. We don't know anyone here to ask for references. Is there an unbiased source for customer-satisfaction ratings for specific plans, or any way we can find out the truth about how stable a plan is and how well it deals with its members?

Dana

When searching for health insurance coverage, it is important to look beyond the cost and consider other aspects of the insurance, including the benefits, the cost sharing, the quality of service and the financial viability of the company. Fortunately, there are excellent sources of information regarding these features of an insurance company.
Insurance is regulated at the state level. Every state and the District of Columbia has an insurance department (or equivalent agency) and an insurance commissioner (or equivalent officer). It is the responsibility of the insurance department to oversee insurance operations, to approve insurance forms and to monitor the solvency of the insurance companies. At the same time, the insurance departments receive and respond to consumer complaints about insurance companies and make sure that such complaints are resolved. The insurance department in your state most likely has records of the number and severity of complaints against insurance companies doing business in your state. Therefore, your best source of information is the insurance department.

You may start by calling the insurance department. Since the agency that regulates insurance may be called something else in your state, it may be best to start with your state's information number. When you reach the insurance department, explain that you are seeking information about an insurance company's track record.

Most insurance departments also have a web site, and many are geared toward consumer information. Perhaps the easiest way to find an insurance department on the Internet is through the website of the National Association of Insurance Commissioners (NAIC). Follow the link to "Insurance Regulators" on the home page, and choose the insurance department map. Click on your state, and you will be linked to your state's website. You can also download a list of insurance department phone numbers through the NAIC site. The insurance department will be an excellent source of information about insurance companies you may be considering.

Another source of information is an insurance company rating organization. Most insurers are rated by one or more organizations, such as A.M. Best or Standard and Poor's. The ratings measure many factors, including solvency, products and service. Most insurance companies are rated by A.M. Best, and you can retrieve rating information online. Standard and Poor's rates fewer companies than A.M. Best, and you can search their records online as well. Don't rely solely on the letter grades conferred by the rating organizations, but look at the narrative as well.

Finally, don't overlook the opinions of professional insurance brokers and agents. Insurance brokers do not want to sell the products of an insurance company with bad customer service, because it will be their problem as well. In fact, if an insurance company provides bad customer service to policyholders, it will probably provide the same low level of service to an agent.