We evaluated 10 well-known Medicare supplement insurance plans, and after careful review identified the 3 best options in 2018. To draw our conclusions, we checked with customers in the market, reviewed data and consulted insurance experts. In summary, no one plan is best for all situations, so we recommend shopping around using a Medicare expert like United Medicare Advisors to compare plans. We found three plans that deserve special recognition: AARP by UnitedHealthcare (The Benchmark for Price), Mutual of Omaha (Most Helpful), and United Medicare Advisors (Best Coverage).
How much do you know about Medicare supplement insurance? Contrary to common belief, Medicare, the government-funded healthcare insurance for American citizens age 65 and up, doesn’t cover 100% of your medical costs. Medicare supplement insurance plans add additional coverage to fill the gap in coverage between Medicare and your actual medical expenses. Private companies sell these so-called “Medigap” policies, which are typically used to cover expenses like deductibles and co-pays.
Coverage can be difficult to understand, and varies by market. Massachusetts, Minnesota, and Wisconsin provide their own policies for residents. The remaining 47 states in the U.S. rely on 11 standard plans that accommodate all types of health, lifestyle, and budget demands. These plans vary based coinsurance needs such as hospital stay, hospice care, travel expectations and more.
In this guide, we’ll provide tips for making a well-informed Medigap insurance purchase, investigate the best companies in the industry, and address some frequently asked questions.
- Insist on price transparency
- Enrollment starts when you are 65 or older and enroll in Medicare Part B
Tips For A Wise Buyer
Be sure to sign up for Medicare supplement insurance within the 6-month window after you turn 65 (or elder) AND enroll in Medicare Part B. When asked what the number one biggest mistake Americans make is regarding Medicare supplemental insurance, a spokesman with the U.S. Social Security Administration told us “Everyone thinks they have enough coverage when they’re 65 if they’re working or if they have insurance through their spouse. They don’t think they have to sign up. Then later they find out they have missed their open enrollment period.”
During the open enrollment timeframe, federal law bans insurers from denying you coverage or charging higher premiums if you have a pre-existing health condition or disability. If you try to sign up after that window, you will likely pay more for premiums and may even be denied.
Start planning as soon you turn 65
Understanding the fine print in a supplemental policy makes a big difference. Research will help you avoid situations like being charged extra out-of-pocket or out-of-network fees. Ultimately, coverage options for supplement insurance varies by plan type and provider, so it’s difficult to know what factors are most important.
Consider these three major factors to find the best supplemental insurance policy: price transparency, helpfulness, and coverage.
There are going to be a number of expenses, charges, and premiums to decode. Set your budget first, then look for a company that is upfront about premiums before you sign on the line.
You should be informed before buying. If you’re reading this guide, that’s a good start. And in general you should be a skeptical buyer, although Medigap insurance is heavily regulated. Still, shopping for insurance can be exhausting, but the best companies make the process as streamlined as possible. Look for a company that caters to your needs, such as a physical office for a face-to-face meeting, a helpful customer service representative on the phone, or online chat.
The more coverage choices available, the more opportunities you have to save and get the best care. Look for companies that offer several or all of the 11 standard plans, then pick what works best for you.**
Benefits by Plan Type
|Part A coinsurance and hospital costs||Yes||Yes||Yes||Yes||Yes|
|Part B coinsurance or copayment||Yes||Yes||Yes||Yes||Yes|
|Blood (first 3 pints)||Yes||Yes||Yes||Yes||Yes|
|Part A hospice care coinsurance or copayment||Yes||Yes||Yes||Yes||Yes|
|Skilled nursing facility care coinsurance||No||No||Yes||Yes||Yes|
|Part A deductible||No||Yes||Yes||Yes||Yes|
|Part B deductible||No||No||Yes||No||Yes|
|Foreign travel exchange||No||No||80%||80%||80%|
|Part A coinsurance and hospital costs||Yes||Yes||Yes||Yes||Yes|
|Part B coinsurance or copayment||Yes||50%||75%||Yes||Yes**|
|Blood (first 3 pints)||Yes||50%||75%||Yes||Yes|
|Part A hospice care coinsurance or copayment||Yes||50%||75%||Yes||Yes|
|Skilled nursing facility care coinsurance||Yes||50%||75%||Yes||Yes|
|Part A deductible||Yes||50%||75%||50%||Yes|
|Part B deductible||No||No||No||No||No|
|Foreign travel exchange||80%||No||No||80%||80%|
Our Search For The Best Medicare Supplement Plans
1. We considered a large number of Medicare supplement insurance companies
2. We evaluated Medicare supplement insurance companies based on our expert guided criteria: price transparency, helpfulness and coverage
3. We brought you the best Medigap plans for consideration
Searching for the right policy can be difficult, so we did it for you. The approach we took to hone in on the top supplemental insurance companies was as follows:
- We considered a large number of supplemental insurance companies
We kicked off our search with 10 Medicare supplement insurance companies that offer a multitude of plans. We included companies that appeared in popular website queries, and those that spent a large amount of money advertising on TV or the radio. These are the companies most likely to be shopped by consumers.
- We followed our own buying tips
Next, we analyzed these companies based on our expert-guided buyer criteria in three categories: price transparency, helpfulness, and coverage. Companies that obscured their prices, made the process very difficult, or had limited coverage options were cut from the search.
- We shopped for policies
We contacted companies and asked for more information. We found out that policies ranged in price from less than $100/month for basic coverage to thousands for maximum protection.
Then, we shared these best companies for you, a friend or family member to consider.
Medicare Supplement Plan Reviews
After our evaluation, we selected three best Medicare supplemental insurance providers: AARP by UnitedHealthcare, Mutual of Omaha, and United Medicare Advisors. Each of these companies were good picks, and also stood out in a unique way.
United Medicare Advisors
United Medicare Advisors will help guide you through the confusing aspects of Medicare plans to find the best insurance strategy for your personal needs. The company works with more than 27 plan providers in 45 states and has produced more than 100,000 policies. Medical Advisors represent companies like Gerber, Sterling and Humana.
Price transparency: To get a quote you can either call a United Medicare Advisors representative or complete an online form with your contact and health details. Upon sending it off, an agent will contact you with suggested plans. United Medicare Advisors need personal information to form a tailored quote for each individual. Their website says they save consumers an average of around $634 per year by switching to a new Medigap plan.
Read our comprehensive United Medicare Advisors review.
Best Online Marketplace
Medicare.net is a one-stop-shop for up-to-date information on Medicare, Medicare supplement plans, Medicare Advantage, prescripton plans and more. It works with every major insurance carrier to provide real-time quotes by state and zipcode. Information you’ll find on their website includes:
- Carrier Medicare information – details on carries such as BCBS, Humana, Aetna and more.
- Important Medicare information – find information on current and future Medicare, Medigap and Medicare Advantage prices, as well as details on prescription drug cards and when to apply for Medicare.
- New Medicare customer information – if you’re new to Medicare, Medicare.net explains what Medicare is and how to apply for it.
Medicare.net wants to help you find the best plan for your situation. Its “Help me find the best plan” button gives your four choices: needs assesment, build your plan, current plan comparion and are my drugs covered?. Depending on your current situation, choose one of the four plans to filter Medicare, Medigap and Medicare Advantage plans.
Read our comprehensive Medicare.net review
AARP by UnitedHealthcare
The American Association of Retired Persons (AARP) offers AARP Medicare Supplemental Insurance plans via UnitedHealthcare. UnitedHealthcare is a subsidiary of UnitedHealth Group and is America’s biggest health insurer, boasting over 130 million members.
Price transparency: AARP earned the top spot as the number one most transparent company since the site generates actual sample rates – without requiring you to fill out personal details in an online form or call a representative. To view rates, type in your ZIP code in the “Find Plans In Your Area” toolbar, then a list generates of all of the available plans and prices based on your age and the plan you want to select. If you decide you want a more detailed quote, then you can call a customer service representative or fill out an online information form requesting to be contacted.
Helpfulness: The company takes as much guesswork as possible out of your quest for supplemental insurance. For example, you can answer a couple health questions in an online quiz that’ll match you with potential plans that may work for you. Company representatives are also available by phone seven days a week. The AARP website has a search tool to find plans in your ZIP code and a link to schedule in-person info meetings in your area if you’d rather have a face-to-face meeting.
Coverage: Now depending on your state, the site offers at least 10 different plans for you to pick. And as we mentioned, the greater the number of plans the greater options you have to get the healthcare you want at a price you can manage.
Mutual of Omaha
The Omaha, Nebraska Fortune 500 health insurance and financial services firm offers a wide range of insurance products, from health to auto coverage. Mutual of Omaha has received stellar ratings, including an A+ (Superior) from A.M. Best Company, Inc. for overall financial strength and its “ability to meet ongoing obligations to policyholders.”
Price transparency: You won’t find any quotes online. You can, however, start the price conversation by completing a quick online form on the site and a representative will contact you to go over possible plans.
Helpfulness: You can search the site for the closest available agent for a face-to-face talk, or fill out a quick online form stating specific times you’re available for a customer service representative to call you – as well as include any notes to explain your needs. The site also features an education section titled “Planning and Advice” which is essentially a Medicare 101 info center to turn you into a Medicare pro. The section includes helpful articles touching on topics including your enrollment period and eligibility rules. That way you can read up on an arsenal of info before you reach out to a representative so you have a better handle on what to ask and what you’re looking for.
Coverage: A search of coverage options by state shows lots of options for consumers to look into, along with links to nearby agents’ offices for you to visit in-person or call with questions for local support.
Check out our comprehensive Mutual of Omaha Medicare Supplement review.
Humana is a Fortune 500 company offering several health insurance plans, including Medicare supplement plans. It services over 13 million customers and has won numerous awards from the National Business Group on Health, American Heart Association, Military Times and other organizations for the company’s insurance products and responsible business practices.
Price transparency: Humana offers quotes on their website with a simple zip code search. Enter your zip code and you’ll see a list of Medicare supplement insurance policies available in your area. Prices are easily comparable thanks to Human’s user-friendly site.
Perks: Humana’s Medicare supplement policies come with perks not found with other companies. Perks include discounts for using electronic payments, Silver Sneakers fitness program, 24-hour nurse access via telephone, discounts on eye exams, contact lenses and glasses, over-the-counter medication, massage therapy and more.
Additional Medicare Supplement Insurance Companies
Read our comprehensive review of Cigna Medicare Insurance
Related Medicare Supplement Resources
Readers of this Medicare Supplement guide content also read these related articles.
Check out this article to see if you meet the qualifications for medicare.
Medicare supplement plans have separate premiums from Medicare. Read about how Medicare supplement plan premiums are calculated.
One concern that comes up when thinking about Medicare supplement plans is whether you’ll be able to use your current doctor with your plan. Read about whether all doctors accept Medicare supplement plans.
Frequently Asked Questions about Medicare Supplement Plans
Do I have to purchase Medicare supplement insurance?
No. but can you afford not to? 9 out of 10 people have a type of supplemental coverage, according to the AARP.
If you forgo supplemental insurance, then you’re responsible for out-of-pocket health insurance costs – that can quickly cost thousands of dollars. If you’re on a fixed income, this may quickly eat into your retirement savings. Unless you can guarantee that you won’t have more than a sniffle for the rest of your life, coverage is probably a good financial move.
When should I buy Medicare Supplement Insurance?
Put this on your calendar – the Medigap open enrollment period. That’s a six-month window which kicks off the first month you’re 65 and enrolled in Medicare Part B. If you sign up for Medicare supplemental insurance during this period, you can join any plan (even if you have a pre-existing condition).
You can still buy Medicare supplemental insurance after this window but you will pay a price – literally. After this enrollment period, insurers may increase premiums or deny coverage.
What if I’m 65 or older and still using my employer coverage?
If you are one of millions of Americans working after 65, your employer health insurance coverage may be all you need for now. Medicare supplement open enrollment generally won’t begin for you until you enroll in Medicare Part B. If you haven’t enrolled in Part B yet, you should consider waiting to enroll until you are ready for your Medicare supplement open enrollment to begin. There are some notable exceptions for Part B and employer coverage.
How much does Medicare supplemental insurance cost?
We found policies that ranged in price from less than $100/month for basic coverage to thousands for maximum protection. There’s no “normal” number, as there are so many factors in play like where you live, your age and needs. A ballpark figure is a couple hundred dollars a month for standard coverage. However, it’s basic economics – the more supplemental insurance you want, the greater the cost.
Can I get a discount?
Yes. Some plans offer discounts if you’re married (studies show that married couples tend to be healthier – as they encourage each other to eat nutritious meals, exercise, and see a doctor). You can also possibly cut your rate if you’re a non-smoker, as you’ll likely have fewer health risks. Or you may be able to save by paying annually or via electronic funds transfer. Even if the website or brochure you’re studying doesn’t mention anything about discounts – ask.
Are all 11 Medicare supplemental insurance plans the same in every state?
While there are 11 different plans in most of the U.S., federal law mandates that each plan carry the same coverage. For example, Plan K in New York offers identical benefits to Plan K in New Mexico.
Where else can I turn for more information?
Call your State Health Insurance Assistance Program. Enter your state, and the contact phone number and website of the local office will appear.
Another website site to check out: The U.S. government-run Medicare site. In addition to being the final resource on Medicare and Medigap insurance, the site has a ZIP-based search to find a Medigap policy in your area.
Bottom line: Medicare supplement insurance coverage is one of the most important health and financial decisions you make for retirement.
If you decide to buy Medicare supplemental insurance, talk with a representative and walk through every cost – and get a list of the cost and benefits in writing. Good companies will offer you this price transparency, and this way you’re not surprised by a large bill or with coverage you don’t need.
Buying a policy can be complicated, so get help and find a helpful policy provider. There are many coverage choices available, and the right plan may help you significantly reduce unwanted medical costs. Before you sign up, it’s a good idea to have a friend or family member review your policy. If that’s not an option, we found the following companies were the best and therefore should be a good choice.