AARP Medicare Supplement Insurance offers comprehensive coverage at a competitive price, making it a favorable choice for many individuals. While the average costs can vary, these plans not only provide the standard benefits but also offer discounted access to vision care, dental services, hearing aids, fitness programs, and more.
Why Choose AARP Medicare Supplement:
AARP/UnitedHealthcare Medicare Supplemental Insurance plans are highly recommended due to their strong coverage options. Although their customer service rating may not be as high as some other companies, the wide range of policy selections allows you to find the plan that suits your needs best. Additionally, the endorsement by AARP adds an extra level of assurance.
AARP/UnitedHealthcare plans are among the most popular Medicare Supplement plans, with approximately 32% of Medicare Supplement subscribers opting for an AARP plan.
Membership Requirement:
To be eligible for AARP Medigap insurance, you need to be an AARP member. If you're not already a member, you can join during your insurance application process. The cost of membership is minimal, at only $16 per year.
Cost Variations:
The costs of AARP Medigap insurance can vary significantly, ranging from about $60 to $300 per month. Obtaining a price quote based on your specific situation can help determine if an AARP policy offers the best value for you.
Lifetime Spending Considerations:
Despite the initial price differences, AARP Medicare Supplement plans generally provide good long-term value. For instance, while a 65-year-old individual may pay slightly more for an AARP Medigap plan, the slower age-based price increases could make it the most cost-effective option in their 80s and 90s, reducing their total lifetime spending.
Discounted Options:
AARP Medigap also offers low-cost alternatives that provide discounts on insurance costs. These plans may have limited coverage for out-of-network facilities and providers but can save you $200 to $250 per year. UnitedHealthcare's extensive network of providers ensures that you still have access to a wide range of healthcare services.
State-specific Cost Variations:
The costs of Medigap plans can vary by state due to pricing regulations. In some states, age and health conditions cannot be used to increase monthly costs. Other states allow price increases based on age, while a few states have their own unique plan structures and pricing.
Comparison with Other Companies:
Comparing costs among different insurance companies can be challenging due to variable plan structures and pricing formulas. It is recommended to obtain insurance quotes tailored to your location and situation. AARP Medigap plans may initially cost more for a 65-year-old individual compared to similar plans from other providers. However, the slower price increases of AARP plans can make them more affordable in the long run. By age 85, AARP Medigap plans can be cheaper than those offered by Humana, Cigna, and BlueCross BlueShield.
Understanding AARP Medigap Plans:
AARP Medicare Supplement Insurance policies are actually provided by UnitedHealthcare. AARP endorses and markets select UnitedHealthcare plans, while receiving a fee of approximately 4.95% for each plan sold.
Medigap policies offer additional benefits on top of Original Medicare (Parts A and B), reducing your out-of-pocket expenses such as deductibles, coinsurance, and other medical costs. The level of coverage depends on the specific plan you choose.
Coverage and Additional Benefits:
Medigap plans have standardized benefits across all companies. Therefore, an AARP Plan G, for example, offers the same coverage as a Plan G from another provider. The Medicare.gov Medigap coverage chart can assist in selecting the appropriate plan based on your needs.
It's important to note that Medigap plans do not cover prescription drugs. For that, you'll need a separate Medicare Part D plan, and AARP/UnitedHealthcare is ranked as one of the easiest-to-use providers of Medicare Part D.
AARP Medigap plans offer additional programs that enhance their value. These include discounted vision care (AARP Vision Discount), dental services (through Dentegra), hearing aid discounts and screenings (HearUSA), a 24/7 nurse line for health-related inquiries, free gym memberships (Renew Active by UnitedHealthcare), mental sharpness activities (AARP Staying Sharp), and a safe driving course that could help lower your car insurance rates.
Customer Reviews and Satisfaction:
AARP/UnitedHealthcare receives mixed customer reviews and satisfaction ratings. While their customer service rating is not as high as some competitors, they have a strong ability to pay claims. UnitedHealthcare is one of the largest health insurance companies and holds a solid A (excellent) rating from AM Best.
It's worth noting that the National Association of Insurance Commissioners (NAIC) reports slightly higher complaint rates for UnitedHealth Group, the parent company of UnitedHealthcare. However, both UnitedHealthcare and AARP have an A+ rating from the Better Business Bureau. Common complaints about AARP include excessive mail, poor customer service, and aggressive marketing.
Frequently Asked Questions:
Is AARP supplemental insurance good?
AARP supplemental insurance plans provide good value by reducing out-of-pocket costs for medical care and offering discounts on various services.
Is AARP the same as UnitedHealthcare?
AARP Medicare policies are provided through UnitedHealthcare. AARP endorses and markets UnitedHealthcare plans, receiving a fee for each plan sold.
Does AARP pay the Medicare deductible?
Coverage for deductibles depends on the specific plan. Medigap plans B, D, G, and N fully cover the Medicare Part A deductible, while plans K, L, and M provide partial coverage. Plans C and F (no longer available to new Medicare beneficiaries) cover both Part A and Part B deductibles.
What is AARP Medicare Supplement Plan F?
Medicare Supplement Plan F, which is no longer available to new Medicare beneficiaries, offers extensive coverage and had the highest enrollment. However, Plan G is now recommended as the best overall coverage option.
Sources and Methodology:
The information provided is based on analysis, policy details, third-party rankings, and sample cost data from 2021. Sources include Medicare.gov, AARP, UnitedHealthcare, Humana, Cigna, BlueCross BlueShield, the Better Business Bureau, J.D. Power, and the National Association of Insurance Commissioners. The data was gathered from various sources to provide a comprehensive overview of AARP Medicare Supplement Insurance.