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 2026, 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 2026, 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 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.

Best Alternative: Humana

Humana is one of our favorite Medicare Supplement companies in Texas because it combines competitive pricing, strong financial stability, and dependable customer service. We've also found Humana's Plan G and Plan N rates to be consistently competitive in many Texas ZIP codes, making it a solid long-term option for retirees.

Depending on where you live, you may also qualify for household discounts and additional member wellness programs that can increase the overall value of your policy.

Want to learn more? Read our in-depth Medicare Supplement company review for plan options, sample premiums, discounts, financial ratings, and our full analysis before choosing a policy.

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.