Top 3 Worst Medicare Supplement Companies in Texas

Not all Medicare Supplement companies are created equal - and in Texas, we’ve seen the good, the bad, and the downright risky.

While the benefits of Medigap plans like Plan G or Plan N are standardized by the government, what’s not standardized is how companies price those plans, how they treat their policyholders, and how stable they are over time.

And that’s where a lot of Texans unknowingly get burned.

As licensed agents in Texas, we’ve worked with thousands of people across the state - from Austin to Amarillo - helping them find reliable coverage they can trust, and just as importantly, helping them get out of plans that weren’t serving them well.

We’ve seen what happens when someone picks the wrong company: sky-high rate increases, disappearing plans, and poor customer service when you need help most.

The 3 Worst Medicare Supplement Companies in Texas

Not all Medigap companies are created equal. While the benefits of each plan letter (like Plan G or Plan N) are standardized, the company you choose in Texas makes a big difference - especially when it comes to monthly premiums, rate stability, and how claims are handled.

Let's look at the worst companies we've seen.

#1. GPM Health and Life Insurance Company

GPM Health and Life Insurance Company currently presents several concerns for Texas Medicare Supplement enrollees, particularly when evaluating pricing, rate stability, and service logistics.

Premium Positioning in Texas

As of 2025, GPM’s Plan G premium for a 65-year-old in Texas is approximately $323/month, which is significantly above the statewide average for that same coverage.

For comparison, many well-established carriers in Texas offer Plan G at rates between $190 and $245/month for the same demographic.

This places GPM’s offering roughly 30–40% higher than market norms without providing any added coverage benefits, as all Medigap plans are standardized by the federal government.

Rate Stability and Operational Structure

GPM is known for frequent and sometimes steep annual rate increases, which may be partially attributed to their operational arrangement.

The company licenses infrastructure and administrative services from Mutual of Omaha, a structure that can introduce additional layers of cost and complexity. This often leads to confusion among policyholders and providers, particularly when it comes to determining which company handles billing, claims, or service-related questions.

In our experience, clients frequently report being redirected to Mutual of Omaha for service support, which suggests a disconnect between policy branding and backend administration.

Financial Rating and Underlying Risk

In March 2024, AM Best downgraded GPM's Financial Strength Rating from A- to B++, citing weaker operating performance and volatility in earnings.

While GPM still maintains a “Good” rating, the downgrade reflects growing concerns around profitability, surplus decline, and sustainability - factors that are important to evaluate when selecting a long-term Medigap provider.

Summary

From a client outcomes standpoint, GPM’s higher-than-average premiums, variable rate stability, and service delivery fragmentation position it as a less competitive option in the Texas Medigap market.

Based on the data and performance history, we recommend Texas shoppers compare alternatives with stronger pricing consistency and simpler policy administration.

#2. Texas Farm Bureau

Texas Farm Bureau is a well-known name within the state, but its Medicare Supplement offerings have raised several concerns - particularly around pricing practices, service accessibility, and recent financial strength downgrades.

Premium and Rate Behavior

Texas Farm Bureau’s Plan G premium for a 65-year-old in Texas is around $143/month, which initially appears competitive.

However, the company has developed a reputation for "teaser" rates that rise significantly after the first policy year.

While all Medigap providers reserve the right to adjust premiums, we’ve observed Farm Bureau's rate adjustments occurring with greater frequency and higher magnitude than most competitors.

Reviews from policyholders frequently cite biannual premium increases, even in the absence of claims or major medical events.

Financial Strength Downgrade

In 2024, AM Best downgraded Texas Farm Bureau’s Financial Strength Rating (FSR) from A- (Excellent) to B++ (Good). The downgrade reflects a 21.5% reduction in policyholder surplus, which negatively impacted their capital adequacy and risk-adjusted reserves.

The outlook on their Long-Term Issuer Credit Rating also shifted to negative, indicating potential for further instability if performance metrics don’t improve.

This rating action affects multiple affiliated entities under the Texas Farm Bureau Insurance Group, including:

• Texas Farm Bureau Casualty Insurance Company
  
• Texas Farm Bureau Mutual Insurance Company
  
• Farm Bureau County Mutual Insurance Company of Texas
  
• Texas Farm Bureau Underwriters
  

While a B++ rating is still considered “Good,” it falls below the threshold that many financial professionals consider optimal for long-term Medicare coverage partners.

Customer Experience Trends

Customer service accessibility has also been cited as a point of concern. Public reviews point to difficulty reaching agents or adjusters, inconsistent follow-up, and a lack of responsiveness when policyholders attempt to update or clarify benefits.

Additionally, some feedback indicates that claims processes and provider communication can be delayed, which is notable considering that Medigap plans are supposed to be simple and straightforward when used.

Summary

While Texas Farm Bureau may appeal to some shoppers with lower first-year premiums, the long-term rate trajectory, downgraded financial outlook, and inconsistent customer service experience raise concerns about overall value and reliability.

For those seeking a more stable and transparent Medigap provider in Texas, stronger alternatives exist in the market.

#3. Heartland National Life Insurance Company

Heartland National Life Insurance Company (HNL) has become a growing presence in the Medicare Supplement market, but its recent performance raises concerns regarding long-term financial stability, risk management practices, and policyholder experience.

Premium Comparison in Texas

As of 2025, Plan G through Heartland National costs approximately $265/month for a 65-year-old in Texas.

While not the most expensive option on the market, it remains notably higher than many leading carriers, which offer Plan G coverage in the $190–$245/month range.

Importantly, HNL does not demonstrate any consistent pricing advantage or unique value justification at this premium level.

Financial Outlook and AM Best Rating

In August 2025, AM Best revised Heartland National’s credit outlook to negative, while affirming its Financial Strength Rating at B++ (Good).

According to the agency, this shift reflects “downward pressure on the company’s overall balance sheet strength” and concerns around elevated financial leverage, annuity risk exposure, and reliance on reinsurance.

The company has also reported statutory net losses in 2025, attributed to high operating expenses and aggressive product expansion.

AM Best specifically cited risks associated with Heartland’s annuity growth strategy, including:

• Reliance on third-party reinsurance
  
• Declining levels of risk-adjusted capital
  
• Modest coverage ratios and surplus relative to liabilities
  

While the B++ rating is still in the “Good” range, the negative outlook signals potential for future downgrades, depending on whether Heartland is able to execute its capital management plans.

Underwriting Experience and Feedback

From a client-facing perspective, Heartland has received mixed feedback on underwriting consistency.

We’ve seen cases where applications were approved with minimal review, while others - with similar health profiles - were unexpectedly declined or delayed. This lack of underwriting predictability can frustrate both consumers and agents.

Additionally, customer service reviews are limited and not particularly strong, making it difficult to assess how well Heartland supports policyholders over time - especially in contrast to more established carriers with clear service histories.

Bottom Line

These three carriers - GPM, Texas Farm Bureau, and Heartland National - may initially appear reasonable, whether due to name recognition or attractive first-year pricing.

But long-term performance, rate stability, and financial reliability matter more when it comes to Medicare Supplement coverage.

We recommend Texas Medicare shoppers carefully evaluate more consistent, better-rated carriers before committing to a company with financial uncertainty or limited service support.

When you're choosing coverage for the long run, stability and trust are essential.

Why Cheap Rates Can Backfire

It’s easy to be drawn to the lowest premium when shopping for a Medicare Supplement plan - especially when the coverage is standardized.

But we’ve seen time and again that what looks like a great deal up front often leads to frustration later.

The Teaser Rate Trap

Some companies offer "teaser" rates - artificially low premiums during the first year to attract new enrollees.

But after that, the rate structure often shifts dramatically.

In Texas, we’ve seen cases where clients received two rate increases in the first 18 months, pushing their premiums well above market average.

What Happens After You Enroll?

Once you’re locked in with a company and past your Open Enrollment or Guarantee Issue period, switching can require health underwriting.

That means many people are stuck paying rising premiums year after year, even if better-priced options become available.

Here are the most common issues we’ve seen with these low-entry-cost carriers:

• Steep, unpredictable rate increases
  
• Lack of transparency around renewal pricing
  
• Plan closures or state market exits
  
• Subpar claims processing or limited customer service access

These issues aren’t just inconvenient - they can lead to real financial and medical stress down the road.

What Stability Looks Like

By contrast, trusted carriers like Blue Cross Blue Shield of Texas, UnitedHealthcare, and Mutual of Omaha tend to offer more predictable long-term pricing, stronger financial backing, and a consistent commitment to policyholders.

Blue Cross Blue Shield's Plan G, for example, has a long-standing track record of moderate, transparent rate increases across most ZIP codes.

These companies also tend to provide clear communication, reliable billing support, and responsive customer service - all of which matter when you actually need your coverage to work.

Bottom Line

Premiums matter, but the cheapest plan today isn’t always the cheapest plan over time.

When evaluating your Medicare Supplement options, consider not just what you’ll pay this year - but how that price might change, and how easy it’ll be to get help when you need it.

For Texans looking for long-term value and peace of mind, choosing a stable, well-rated carrier is often the better financial decision.

Worst Medigap Plans to Avoid (A, B, K)

While there are a variety of Medigap plans available in Texas, not all of them offer meaningful value - especially when it comes to real-world healthcare costs.

Based on what we’ve seen helping clients across the state, the following three plans consistently underperform in both coverage and long-term satisfaction.

Plan A: Too Barebones for Most Texans

Plan A is often the lowest-cost Medigap plan on paper, but that affordability comes at a steep price: it doesn’t even cover the Medicare Part A deductible, which in 2025 is $1,676 per hospital stay.

It also excludes skilled nursing facility care and Part B excess charges.

Real-world example: A client hospitalized for 4 nights with no additional Medigap coverage ended up paying over $3,000 in uncovered expenses - just between the Part A deductible and coinsurance.

Unless you’re looking to self-insure most of your hospital risk, Plan A generally leaves too many gaps for comfort.

Plan B: Slightly Better, Still Incomplete

Plan B improves slightly on Plan A by covering the Part A deductible, but it still omits key features like skilled nursing facility coverage and Part B excess charges.

Given how similar the pricing often is to more comprehensive plans, the added cost savings tend to be minimal.

In most Texas ZIP codes, Plan B premiums are only marginally lower than Plan N - which offers far better coverage for the difference.

For most Medicare enrollees, Plan B is simply not competitive when compared to what else is available.

Plan K: High Risk, Partial Coverage

Plan K stands out for its unusually high out-of-pocket exposure. It only covers 50% of many core benefits, including Part B coinsurance, hospice care, and skilled nursing.

The plan does include a maximum out-of-pocket limit ($7,220 in 2025), but that’s still far more than what most Medigap enrollees expect to pay.

Real-world example: A client undergoing cancer treatment had to pay 50% of the cost of chemotherapy infusions - thousands of dollars out of pocket - because Plan K only partially covers outpatient care.

While Plan K is sometimes the only affordable Medigap option available for Texans under age 65 due to disability, we don’t recommend it unless there are no viable alternatives.

Bottom Line

These plans may look affordable upfront, but they leave too many gaps when your health takes a turn.

A good Medigap plan should give you confidence that you’re protected - not anxiety about surprise medical bills.

When comparing options in Texas, it's worth paying a little more for comprehensive, stable coverage that won’t fail you when you need it most.

Best Plans to Consider in Texas – Plan G and Plan N

With all the different Medigap plans available, most Texans end up choosing between just two: Plan G and Plan N.

Both offer strong protection, freedom to choose your doctors, and consistent coverage across the U.S. - but they serve slightly different needs depending on your health and budget.

Plan G: Full Coverage and Predictability

Plan G remains the gold standard for people who want full coverage with minimal surprises.

It pays for every Medicare-approved cost except the small annual Part B deductible ($257 in 2025).

That means:

• No network restrictions - see any doctor or specialist who accepts Medicare
  
• No referrals required
  
• No coinsurance or copays once you’ve met your deductible
  

This is especially valuable for Texans managing chronic conditions or those who simply want to avoid unexpected medical bills.

Average monthly premium in Texas: $190–$245/month depending on ZIP code, age, gender, and carrier

In our experience, Plan G also tends to be more stable year-over-year in terms of rate increases - especially with companies like Blue Cross Blue Shield of Texas and Mutual of Omaha.

Plan N: Lower Premiums with Some Tradeoffs

Plan N offers the same core hospital and outpatient coverage as Plan G, but with a few modest cost-sharing features:

• Up to $20 for office visits
  
• Up to $50 for ER visits (waived if admitted)
  
• Does not cover Part B excess charges (rare but possible with non-participating Medicare providers)

Plan N is a great fit for healthy retirees who don’t visit the doctor frequently and are comfortable with occasional small bills in exchange for a lower monthly premium.

Average monthly premium in Texas: $150–$190/month depending on your location and insurer

Rate increases for Plan N have historically been slightly lower than those of Plan G, which makes it appealing for those planning ahead.

Which is right for you? If you want complete peace of mind and don’t mind paying a bit more monthly, Plan G is the stronger pick.

If you’re healthy and budget-conscious, Plan N gives you great coverage without overpaying.

Medigap vs. Medicare Advantage in Texas

Many Texans are drawn to Medicare Advantage plans for one simple reason: $0 premiums.

On the surface, that’s hard to ignore - especially when you’re on a fixed income.

But when you look beyond the monthly premium, the differences between Medicare Advantage and Medicare Supplement (Medigap) plans become much more important.

The Tradeoffs Behind the $0 Price Tag

Medicare Advantage plans in Texas often come with tradeoffs that don’t show up until you try to use your coverage:

• You’re limited to a provider network (usually HMO or PPO), and that network may not include your preferred doctors or hospitals.
  
• Referrals and prior authorizations are common, especially for specialist visits, scans, or procedures.
  
• Out-of-pocket costs can add up, with copays for office visits, hospital stays, and outpatient services - even if the plan is premium-free.
  

If you’re managing a chronic condition, need flexibility to travel, or just want control over your care, these restrictions can be frustrating.

What Medigap Offers Instead

Medicare Supplement plans (like Plan G and Plan N) work very differently:

• See any doctor or specialist nationwide who accepts Medicare - no referrals required
• No prior authorizations - if Medicare approves the service, your Medigap plan pays its share
• Predictable, consistent coverage with minimal billing surprises
• Lifetime renewability - once you’re enrolled, your plan can’t be canceled for health reasons
  

This simplicity and stability is one reason over 780,000 Texans are enrolled in Medigap plans - and why satisfaction rates consistently hover above 90% nationally.

Stability Matters Over Time

In our experience, Medigap offers more reliable long-term coverage.

With Medicare Advantage, plan networks, benefits, and costs can change every year. You may have to re-shop your plan annually just to avoid losing access to your doctors or medications.

With Medigap, by contrast, your benefits are locked in. You don’t need to keep switching plans or checking provider directories - the plan you choose today will work the same next year, and the year after that.

In a nutshell: Medicare Advantage might look more affordable on the surface, but Medigap offers greater freedom, fewer restrictions, and peace of mind - especially for Texans who want long-term control over their healthcare.

Our Top Pick of Medigap Providers: Humana

When it comes to combining financial stability, strong plan options, and reliable member support, Humana stands out as one of the top Medicare Supplement providers in Texas.

Here’s why we recommend Humana to so many of our Texas clients.

#1. Strong Financial Backing and Reputation

Humana has consistently maintained high ratings for financial strength, giving policyholders confidence that the company will be there long-term.

Their Medicare division is one of the most established in the country - and that stability translates into more predictable pricing and better support when it matters most.

#2. Transparent, Competitive Pricing

Humana’s rate history in Texas has been steady, especially on their Plan G and Plan N options.

While some carriers lure clients in with teaser rates that spike after the first year, Humana tends to offer a more measured, long-term pricing strategy, which is important for retirees on a fixed budget.

Premiums vary by ZIP code, but we’ve found Humana to be particularly competitive in both urban and rural counties.

#3. Claims Handling and Customer Experience

Humana’s claims processing is efficient and consistent, and clients rarely report billing errors or disputes.

When issues do arise, their customer service team is responsive and easy to work with - something we can’t say for every Medigap carrier.

We also appreciate that Humana offers a user-friendly online portal, making it easy for members to track benefits, print ID cards, and manage prescriptions if they’re bundling with Part D.

#4. Discounts and Programs

Humana offers various household discounts in some areas, and their members may also benefit from wellness programs, fitness memberships, and digital health tools - which can add extra value, especially if you're looking for more than just medical coverage.

We help Texans switch to Humana every week, and in many cases, it saves them hundreds of dollars per year compared to what they’re currently paying.

If you're looking for a Medigap carrier that delivers on pricing, service, and peace of mind - Humana is one of the strongest choices in the Texas market.

Final Thoughts

Choosing the right Medicare Supplement plan in Texas goes beyond just comparing premiums - it’s about finding a carrier and coverage that will hold up over time.

We’ve seen firsthand how the wrong company or plan can lead to unexpected rate increases, poor service, or coverage gaps when you need care the most.

That’s why we built this guide - to help Texans make smart, informed decisions based on real-world experience and long-term value.

Plans like G and N continue to offer the best balance of affordability and protection. And when paired with a stable, well-rated insurer like Humana or Blue Cross Blue Shield, you’re setting yourself up for years of confidence and predictability.

If you're not sure whether your current coverage is still competitive - or you're choosing a Medigap plan for the first time - we’re here to help. We work with top carriers across Texas and can help you compare options without any pressure.