How to Choose the Best Medicare Supplement Company

Here at MedicareWire, we are not insurance agents. We do not sell Medicare Supplement insuranceMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage.... or any other type of health insurance.

We are educators and senior advocates. Our job is to make sure that seniors and their caretakers have the information they need to make the best decisions possible related to their Medicare health insurance.

To this end, MedicareWire creates programs that analyze Medicare plans. We look at many different aspects of plans and insurers in order to bring our readers unbiased information. Then we help our readers get to the enrollment page for the plan of their choice. We do so without trying to coerce personal information out of you so that you can be bombarded with phone calls and junk mail.

We also work with a national insurance brokerage, HealthCompare. When you call the number at the top of our website you’re calling ealthCompare, a company with a strong reputation for great service. However, we want you to feel free to use the agency of your choice. Our list of  Top 10 Medicare Supplement Insurance Companies stands on its merit, we have no direct affiliation with these companies.

In this MedicareWire article, we will help you understand how to choose the best Medicare supplement insurance company in your area. We’ll also answer the following frequently asked questions about supplemental insurance:

Supplemental Insurance Company Ratings

Coming up with a definitive list of the best supplemental Medicare insurance is very difficult. Ask 10 agents this question and 9 out of the 10 will tell you that it’s whichever plan has the lowest premium and the lowest rate increase history in your area. However, we decided to take a few more data points into consideration. Here’s what we looked at to come up with our list:

1. Lowest rates and rate increases
2. Years in the Medicare Supplements Business
3. Range of Plans Offered
4. A&M Best Financial Rating
5. Medicare SELECTMedicare SELECT is a type of Medigap policy (Medicare supplement plan) that requires its members to get their primary care from a contracted provider.... Plans Offered
6. Household Discount Offered
7. Policy Fee

We put these metrics through a weighted scorecard methodology and generated our list. What we found, however, is that there are no clear winners. The top 10 list actually varies wildly from state to state. However, we did find that a handful of insurers, from a list of over 200, were consistently near the top. In alphabetical order they are :

• Aetna Medicare Supplements
• Anthem Medicare Supplements
• Bankers Fidelity Medicare Supplements
• Blue Cross Blue Shield Medicare Supplements
• Cigna Medicare Supplements
• Continental Life Medicare Supplements
• Gerber Life Medicare Supplements
• Humana Medicare Supplements
• Loyal American Medicare Supplements
• Mutual of Omaha Medicare Supplements

From our analysis, we feel that you can confidently choose any one of these insurance carriers. But, don’t choose until you have all of the facts. You must get an up-to-date rate and rate increase history report for the plan you want in your zip code. We now offer this as a free service.

Comparing Medigap Insurance Companies by Rate Increases

Look, we can tell you who we think the best Medigap insurance companies are, but until you actually compare rates and rate increase, you’ll never know for sure. As you are probably aware, all lettered Medigap plans offer the exact same benefits, regardless of the insurance company standing behind the policy. That’s because Medicare supplement plans are standardized (in all but three states)

Here’s a fact. An Aetna Medicare Supplement Plan FMedicare Supplement Plan F is the most comprehensive Medicare supplement plan available. This plan covers all Original Medicare deductibles, coinsurance, and copayments, leaving you with no out-of-pocket costs on all Medicare-approved services.... may cost less in San Diego, California than the same plan from Mutual of Omaha, but in Tampa, Florida Mutual of Omaha’s rates could be better. You simply won’t know until you get a free Medicare Supplement Rate Analysis.

Getting the rate increase history is important because it will show you, in back and white, what you can expect from each insurance carrier. The last thing you want is to jump into an insurance pool with a low initial rate and rapid rate increases down the road. Stable rates are best, even if the initial rate is slightly more.

The Most Popular Standardized Medicare Supplement Plans

As mentioned above, Medigap plans are standardized. Each lettered plan (A, B, C, D, F, G, K, L, M, and N) covers you with the same benefits, regardless of the company you choose. We suggest that you get a rate plan analysis, then work with your agent to select the best company. Your agent can walk you through the companies and options so that you get the best supplemental Medicare insurance for YOU.

Although Medigap plans are standardized, not all plans offer the same level of coverage. Even though there are 10 different lettered plans, only three of those plans are super popular. Those plans are Plan F, Plan FG, and Plan N. Most people aging into Medicare this year will choose one of those plans.

Best Medicare Supplement Plans

The top reason Plans F, G, and N are so popular is that they leave their beneficiaries with the least out-of-pocket expenses. This is the top reason people buy a Medicare supplement vs. Medicare AdvantageMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B)..... Another top reason is choice because Medigap insurance is accepted by all doctors who accept Medicare patients. There are no networks to hassle with or approvals needed to see a specialist.

Here’s why Plans F, G, and N are the best (e.g., so popular).

Medicare Plan F is the Best Medicare Supplement Because…

Medicare Plan F is the Cadillac of Medicare Supplements. The simple reason for this is that it offers first-dollar coverage. When you have a Plan F policy you pay nothing out-of-pocket on all Medicare-covered services. People who choose this plan like it because it’s easy and offers complete peace-of-mind. You pay your monthly premium and you’re done. Period. BUT, this plan is not for everyone.

Not only is Medigap Plan F the most expensive of all Medicare supplements, but it’s also no longer available to Medicare beneficiaries turning age 65 this year. That’s a decision Congress made a few years ago that took effect starting 1 January 2020 (see: Is Medicare Plan F Going Away?). But, let not your heart be troubled, because Plan G is a great option.

Medicare Plan G is the Best Medicare Supplement Because…

For the past few years, Medicare Plan GIf you're turning age 65 this year, Medicare Supplement Plan G is the most comprehensive Medicare supplement you can buy. It's also the most popular. You might be thinking that Medicare Supplement Plan F is... has been growing in popularity because people started to realize that they can save a lot of money with this plan vs. a Plan F policy. The reason for this is that Plan G covers everything that Plan F covers except the Medicare Part BMedicare Part B is medical coverage for people with Original Medicare. It covers doctor visits, specialists, lab tests and diagnostics, and durable medical equipment. Part A is for hospital inpatient care.... deductibleA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share..... That’s the annual deductible you pay to see your doctor (and use other medical services) before Medicare kicks in and starts paying. In most cases, Medigap Plan G’s annual premium plus the Part B deductible is less than the annual cost of Plan F.

When you first do the math it may not look like a lot of money. But, if you are healthy, and rarely see your doctor for anything other than your annual checkup, Plan G’s savings really add up. The reason for this has to do with the fact that your preventative healthcare visits are free with Medicare. So, for healthy people, you may not pay your annual deductible for 3, 4, 5 years or more. As a result, the $300 to $400 per year difference between a Plan G and F policy really stacks up.

Medicare Plan N is the Best Medicare Supplement Because…

Speaking of being healthy, if you’re super healthy and want to save a bunch on your supplemental Medicare insurance premiumsA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums. ..., be sure to discuss Medicare Plan NMedicare Supplemental Plan N is one of the ten standardized Medigap plans. Although it is one of the newest plans available, Medicare Plan N is quickly becoming a favorite with Baby Boomers aging into their... with your agent. This is not only the newest of the 10 Medigap plans, but it’s also one of the most innovative and most economical.

With a Medigap Plan N policy, you pay a small copayA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service.... when you see your doctor (up to $20) or use the emergency room (up to $50). And, unlike Plan G, you don’t get coverage on Medicare excess chargesA Medicare Part B excess charge is the difference between a health care provider’s actual charge and Medicare’s approved amount for payment..... These are costs above what Medicare regularly pays doctors (up to 15% more) for medical services. In trade for you paying these small costs out-of-pocket you pay much less for your Medicare supplement coverage.

Medicare Supplement Insurance Companies

Above we named our pick for Top 10 Medicare Supplement Insurance Companies. Here’s some background information on those 10 insurance carriers and why we feel they are a solid choice.

Aetna Medicare Supplements

Founded in 1853 as a life insurance company, Aetna is one of the oldest insurance companies in the United States. What you can count on from Aetna is stability, and that’s why they are one of our top picks. Currently, they have an A rating with A.M. Best, and their rates are very competitive.

Aetna offers Medigap Plans A, B, F, G, and N, however, they do not offer any of the cost-sharing plans with an annual cap, such as Plan K and L.  Also Aetna does not offer Medicare SELECT plans. As a result, they do score a little lower than some of our top picks. Here are the Pros and Cons:

However, Aetna has one of the best member portals in the business. If you are a member, you can register for an account through the Aetna website to track claims, request a new ID card, view your policy coverage, and pay your bill online.

Anthem Medicare Supplements

Anthem is a member of the Blue Cross Blue Shield Association. As with all BCBS members, Anthem is an independent company. However, unlike most of the Blues, Anthem offers its own Medicare Supplements, including Plans A, F, G, and N.  Here are the pros and cons of Anthem Medigap from our analysis:

One interesting note about Anthem is that it offers the super popular SilverSneakers® program (fitness classes) to many of its policyholders. So, if fitness is important to you, Anthem offers a great way to save by getting your coverage through them.

Bankers Fidelity Medicare Supplements

Founded in 1955, Bankers Fidelity Life offers Medicare supplement insurance in many states. They have an excellent rating with A.M. Best and have been selling Medigap plans for over a decade.

Bankers Fidelity Life offers a wide range of plans, including A, B, F, G, K, L, and N (plans, coverage, and options vary by state). All of their Medicare supplements include the standard Medigap features, which includes nationwide access to all healthcare providers that accept Medicare. Plus, each of their plans is guaranteed renewable and there are no waiting periods for pre-existing conditions.

Here are the pros and cons based on our analysis:

Blue Cross Blue Shield Medicare Supplements

Founded in 1929, Blue Cross Blue Shield (BCBS) ensures nearly 1 in 3 Americans. While they are not the biggest Medicare Supplement carrier, we feel they are among the very best.

BCBS offers 7 different Medigap plans, including A, F, G, K, L, and N. They also sell the High-Deductible Medicare Plan F policy. And, although they are not as popular as other plans, we appreciate that BCBS offers Plans K and L, providing their members with more opportunities to lower their premiums.

Cigna Medicare Supplements

Although they only have about 10 years of experience servicing Medicare Supplements, Cigna has a top 10 Plan F premium and a strong financial rating from A.M. Best. We also appreciate that they don’t charge a policy fee. They might be relatively new in the business, but they are financially strong and have good rates, so we feel they are one of the better options for seniors to consider.

Here are the pros and cons of our analysis:

Continental Life Medicare Supplements

Established in 1983, Continental Life is a relatively new insurance company. And, although they built a strong financial rating all on their own, they became a subsidiary of Aetna in 2011, strengthening their financial rating even further.

Continental Life offers the full range of Medicare Supplement plans. Although their plan offering differs by state, the most popular plans are available in all of the states they service. Here are the pros and cons based on our analysis:

Gerber Life Medicare Supplements

Best known for its line of baby food, the Gerber name in the insurance business surprises many people. But, the fact is, Gerber Life is a major player in both life insurance and Medicare supplements.

Gerber Life is a financially stable insurance carrier and offers a variety of insurance products, including a good line of Medigap plans. It’s their diversity of insurance products that makes us pro Gerber.

Founded in 1967, Gerber Life Insurance Company is now owned by the Nestle Company, it has a solid A rating from A.M. Best, which is considered excellent.

Humana Medicare Supplements

Humana Insurance Company is one of the largest private Medicare insurance companies. Their financial strength is excellent, and they have a solid reputation for good customer service.

Humana writes 9 of the standardized Medigap plans. In fact, the only plan they don’t offer is Medigap Plan MMedigap Plan M offers good coverage for healthy people who are unlikely to incur excess charges or require hospitalization. Although the coverage is similar, Plan M is not as popular as Medicare Plan N due.... They also offer the high-deductible versions of Plan F and Plan G. Here are the pros and cons to consider:

Loyal American Medicare Supplements

Loyal American has been in the insurance business for more than fifty years and have been selling Medicare supplement policies since 2005. They offer a variety of insurance products and serve millions of Americans nationwide. They offer most of the standardized Medigap plans, but depending on where you live, some plans may not be available. Here are the pros and cons of our most recent analysis.

Mutual of Omaha Medicare Supplements

Mutual of Omaha was one of the very first companies to offer Medicare supplement plans. When Medicare was signed into law in 1965, Mutual was stepped up to help seniors get more coverage. They have been covering seniors ever since, and have several subsidiary companies, including United World Life Insurance Co. and United of Omaha Life Insurance Co.

Mutual offers Medicare supplement plans in all states, except Massachusetts, and is rated A+ (superior) by A.M. Best. Plans vary a bit by state, but the three most popular Plans – F, G, and N – are available in all states where Mutual and its subsidiaries sell Medicare supplement plans.

Here are the pros and cons:

 

Citations & References