Using BBB to check reliability
originally posted: 11/22/2006 reposted: 9/18/2011 revised: 12/27/2013
Q: I checked online with the BBB and they've never heard of some of the companies you recommended that are listed on the state insurance exchange Web site. EyeMed and Careington International are recognized by the BBB but these companies are not members and are not on the exchange.
A: Each company makes the decision of whether to associate with the Better Business Bureau for a variety of reasons and so it does not make sense to make judgments based solely on BBB membership alone. The BBB membership profile is most useful when combined with other information. BBB membership is unrelated to the decision as to whether a company is listed on an insurance exchange. Each insurance exchange has their own listing criteria and none, to my knowledge, consider BBB membership as a factor. My own endorsements do consider BBB membership as a criteria in selection but this is not the only factor or even a major factor in most cases.
I personally decided to affiliate with the BBB back in the 1980s but then let my membership lapse while the BBB's Philadelphia branch underwent a reorganization that seemed to cause a decline in member services. My membership is active again for 2012 and the profile is listed at http://www.bbb.org/washington-dc-eastern-pa/business-reviews/insurance-companies/tony-novak-in-bala-cynwyd-pa-80011516/.
In November 2013 I resigned my membership with the Better Business Bureau in protest to their interpretation of provisions of the Affordable Care Act and how that interpretation adversely impacted some of my clients that work in the health insurance field. I wrote to the BBB requesting an explanation for their bizarre assertions but received no response. A copy of my request for an explanation and resignation letter and available online at tonynovak.com.