Consumer Reports Medigap 2024: A Comprehensive Guide to Medicare Supplements

Medigap plans are standardized, meaning the benefits are the same across different insurance companies, but the price can vary significantly.

Plan F is the most comprehensive Medigap plan, covering 100% of Medicare-approved expenses.

In 2024, Medigap plans will no longer be sold to new Medicare beneficiaries, but existing policyholders can continue to renew their plans.

The Medicare Supplement Insurance (Medigap) program has been in place since 1992.

Medigap plans are not the same as Medicare Advantage plans, and they pick up some or all of out-of-pocket expenses such as the $1,156 deductible for hospitalization under Part A.

To buy a Medigap plan, start at the Medigap policy search page on Medicare.gov, enter your zip code, and you'll see a list of the standardized lettered plans.

Plan F is the most popular choice among the nearly 10 million Americans who buy Medigap plans, with 51 percent of the market, according to America's Health Insurance Plans.

The cost of a plan can vary greatly depending on the company you buy it from, the premium pricing method the company uses, how old you are when you buy it, and whether you have any pre-existing conditions.

You won't see prices on the Medigap policy search page, so you'll need to contact the companies one by one or work with a trusted independent health insurance broker to get that information.

Blue Cross Blue Shield offers a wide range of Medicare Supplement plans, including all 10 types of plans, which is a unique feature among providers. They have a strong presence in 41 states, with 33 independent companies making up the group.

One of the benefits of choosing Blue Cross Blue Shield is their competitive pricing for Plan F, which is lower than the industry average. They also offer a high-deductible Plan F option.

If you live with another person insured by Blue Cross Blue Shield, you may qualify for a household discount in some states. This can be a great way to save money on your premiums.

Blue Cross Blue Shield's extra benefits are also worth noting, as they include premium discounts, a 24/7 nurse line, routine hearing exams, a free fitness membership, and discounts on health products and services. Depending on your state, you may be able to add coverage for prescription drugs and dental care or a dental/vision/hearing package.

Here are some key facts about Blue Cross Blue Shield's Medicare Supplement plans:

AARP/UnitedHealthcare is a top contender in the Medicare Supplement market, offering a range of benefits and competitive pricing. They have a reputation for being well-placed to meet their insurance obligations, with an A+ rating from credit rating agency AM Best.

One of the standout features of AARP/UnitedHealthcare's plans is their relatively few customer complaints, which is impressive given their size. They also have a lower-than-average premium for Plan G, making them a great option for those looking for a more affordable Medigap plan.

AARP membership is required to purchase a policy, but it's only $16 a year, and you'll get some nice extras, such as a free gym membership and discounts on dental, vision, and hearing care. You can also get discounts on premiums for making electronic payments from your bank account and having multiple household members enrolled.

Their community pricing model charges everyone similar premiums at the beginning, regardless of age, and raises premiums at the same rate for everyone. This approach can be more stable over time, but premiums may be higher initially.

Here are some key benefits of AARP/UnitedHealthcare's Medigap plans:

However, it's worth noting that their high-deductible Plan G premiums are expensive, and their loss ratio is lower than some competitors, which may indicate that they're spending less on claims.

Medicare Supplement Insurance can be a complex topic, but it's essential to understand the basics. Investopedia's researchers consulted with market intelligence firms to identify the best Medigap companies, focusing on providers with strong financials, customer satisfaction, and nationwide availability.

To create this list, the researchers used data from organizations like AM Best and the National Association of Insurance Commissioners (NAIC), which collects customer complaints. They also mined data from government databases and insurer websites to develop a quantitative model that scored each Medigap company based on criteria like costs, financials, and customer satisfaction.

The researchers weighted these criteria as follows: costs (38%), financials (30%), plan types (17%), customer satisfaction (10%), and nationwide availability (5%). This approach helped them identify the top Medigap companies, including Humana, which offers a high-deductible Plan G with better-than-average premiums in 42 states.

Medicare Supplement Insurance plans are categorized into several types, each with its own set of benefits and costs.

Plan A is the most basic, covering basic hospital expenses and some skilled nursing care.

Plan F+ offers more comprehensive coverage, including deductibles, copays, and coinsurance for hospital stays and doctor visits.

Plan G+ also provides extensive coverage, but excludes the deductible for hospital stays.

Plan N offers a balance between cost and coverage, requiring copays for doctor visits and emergency room visits.

Humana's high-deductible Plan G has better-than-average premiums, with an average premium of just $93 in a cost analysis of ZIP codes in five states.

Humana offers up to eight Medigap plans in 42 states, which is a significant advantage for those looking for flexibility in their coverage.

If you live with your spouse, Humana offers a generous 12% discount to reduce your premium further.

Humana received a respectable A financial strength rating from AM Best, which is a good sign for the company's stability.

However, Humana's complaint record is concerning, with a complaint index nearly four times the expected number, indicating a very high number of complaints for a company of its size.

If you're looking for a reliable Medicare Supplement Insurance company, consider Blue Cross Blue Shield. They offer all 10 types of Medicare Supplement plans, including a high-deductible Plan F, and have a household discount available in some states.

Their financial strength and customer satisfaction ratings vary by state, but they have very good grades ranging from A+ to A-. However, their premium prices increase more with age than the industry average.

State Farm stands out for its financial strength and customer satisfaction. It has the highest financial strength rating possible, an A++ AM Best rating, and received far fewer complaints from policyholders than expected for its size.

Humana's high-deductible Plan G policy is widely available and costs less than average, but their customer satisfaction ratings are not as strong as some competitors.

Here are some key differences between these companies:

Ultimately, the best Medicare Supplement Insurance company for you will depend on your individual needs and circumstances. Be sure to research and compare options carefully to find the one that's right for you.

Medicare Advantage plans are private and replace regular government-run Medicare, covering the same health services as original Medicare but with out-of-pocket expenses up to an annual maximum of $5,000 to $6,700.

You'll have to pay these expenses, even if you have a Medigap plan, which works with original Medicare to pick up its out-of-pocket costs.

Advantage plans often come with Part D drug plans, but you'll have higher out-of-pocket expenses and be restricted to the plan's network.

Medigap plans, on the other hand, will leave you with little or no out-of-pocket exposure, depending on the plan design you choose.

If you don't like your Advantage plan, you can switch to another one at open enrollment, but with Medigap, you might be stuck with it after a six-month grace period.

In most states, Medigap insurers can turn you down or charge you extra because of pre-existing conditions after this period.

Be aware that if you skip Part D when you start Medicare and change your mind later, you'll be assessed a permanent premium surcharge, which in 2015 is $0.33 per month.

This surcharge can add up quickly, so it's better to enroll in the cheapest plan available when you first become eligible for Part D.

Medicare Supplement Rates are determined by various factors, including the Region you live in.

The Regions across the Top Row are used to categorize Medicare Supplement Insurance Rate Plans, which affects the premiums you'll pay.

The first three digits of the Zip Code across the Second Row also play a role in determining your premium rates.

Insurers' names are listed down the first Column, but the monthly premiums for December 1, 2024 are contained in the body of the Table, where you can find the actual rates.

To give you a better idea, here are the Regions across the Top Row:

Anthem is a great option for those looking for the lowest cost Medicare Supplement plan. Their average premium for Plan G is the best among the companies Investopedia researched.

You can get a 10% household discount if you cover multiple people in the same household, which can add up to significant savings.

Anthem operates in 14 states, so it's essential to check if they're available in your area.

Their Plan G policies have the lowest premiums for 70- and 80-year-olds compared to other Medigap companies.

Anthem also offers extra benefits, such as a SilverSneakers fitness membership, prescription drug discounts, and savings on vitamins and weight loss programs.

Here are some key benefits of choosing Anthem:

Medicare Supplement rates can be a bit of a puzzle to navigate, but don't worry, I'm here to help you understand the basics. Medicare Supplement plans, also known as Medigap plans, are standardized and regulated state by state, so it's essential to know what to expect.

The federal government sets minimum standards for how these plans are priced and sold, but the specifics can vary greatly depending on your location. Some states have more consumer protections than others, so it's crucial to research the regulations in your area.

If you're looking to buy a Medigap plan, start by visiting Medicare.gov's Medigap policy search page. Enter your zip code, and you'll see a list of the standardized lettered plans available in your area, such as Plan F and Plan C.

Plan F is the most popular choice, covering almost every out-of-pocket expense for Parts A and B, with 51% of the market share. Plan C is the runner-up, covering slightly less, with 14% of the market share.

To find the monthly premiums for December 1, 2024, you can refer to the table below:

Keep in mind that the cost of a plan can vary greatly depending on the company you buy it from, your age, and any pre-existing conditions you may have.