aarp medicare supplemental insurance provides solid coverage at a good price. Average costs vary, and in addition to standard benefits, plans provide discounted access to vision, dental, hearing, fitness and more.
our thoughts: why we recommend aarp medicare supplement
medicare supplemental insurance plans (also called medigap) from aarp/unitedhealthcare are a good option for most people. customer service rating is not as strong as other companies. however, the wide range of policy selections makes it easy to choose the best plan for you, and aarp’s backing can give you peace of mind.
They’re some of the best medicare add-on plans available, and they’re also the most popular plans, with about 32% of medicare add-on subscribers having an aarp/unitedhealthcare plan.
Insurance policyholders must be aarp members and you can join during your insurance application if you are not already a member. membership costs are minimal at just $16 per year.
AARP medigap insurance costs vary widely, from about $60 to $300 per month. Getting a quote based on your situation can help you understand if an AARP policy is the best deal for you. you.
Despite the large price differences, AARP’s Medicare Supplement plans are generally good value for money. For example, a 65-year-old may pay a little more for an AARP Medigap plan, but slower price increases with age could mean you’ll have the cheapest plan when you’re in your 80s or 90s. this reduces your total lifetime spend.
For those who want a discount on insurance, AARP Medigap offers low-cost alternatives that limit some coverage to in-network providers and facilities. These plans could save you $200 to $250 a year in insurance costs, and with unitedhealthcare’s large network of providers, you may not see a significant impact on access to care.
medigap costs vary by state
Costs for add-on plans vary widely. To a large extent, this is due to state differences in pricing regulations.
Eight states prohibit cost increases based on age or health status. most other states can increase monthly costs as you age. and there are three states that don’t follow the standard medigap plan letters and have their own style of plans and prices.
1. aarp medigap costs in states where age does not affect price
In states with this rate structure, insurance companies cannot use your age to increase your monthly costs. Your rates may increase over time based on inflation or industry changes, but in general, you can expect more stable pricing.
2. aarp medigap costs in states where age affects prices
In states with this pricing structure, the average monthly cost for AARP Medigap Plan G is $124 per month for a person age 65+. at age 75, the average monthly premium is $199, and it’s $209 for those age 85.
For Plan K, our recommendation for an affordable Medicare Supplement plan, monthly costs range from $58 to $98.
aarp/unitedhealthcare price increases are based on what is called an enrollment discount.
This pricing structure is unique to AARP, and Humana’s sample medigap policies have a consistent 3% increase each year.
3. aarp medigap costs in states with alternative plans
the medicare supplemental plans in massachusetts, minnesota and wisconsin have different structures. Instead of typical plan letters and benefits, these states use alternate plan names. Below are the average costs of AARP Medicare Supplement plans for a non-smoking woman age 65 in these states. Please note that Minnesota and Massachusetts do not allow price increases based on age, but Wisconsin does.
how aarp medigap costs compare to other insurance companies
Due to variable plan structures, it can be difficult to compare costs, and the most accurate comparison will be based on insurance quotes for your location and situation. In states where prices change as you age, different formulas for price increases can affect your total lifetime costs. For example, a 65-year-old woman may pay more for the AARP Medicare Supplement than for a similar Humana or BlueCross BlueShield plan. However, in this case, AARP plans have slower price increases. at age 85, aarp medigap is cheaper than human, cigna, and bluecross blueshield.
To understand how aging will affect your costs, you can request multiple price quotes to discover the best deal now and for decades to come.
how do aarp medicare supplemental plans work?
When you buy a medicare supplemental insurance plan from aarp, you’re actually getting a unitedhealthcare policy. As part of the business agreement, AARP endorses and markets select UnitedHealthcare plans, and in turn, AARP earns an estimated 4.95% fee for each plan sold.
medigap policies give you additional benefits in addition to original medicare (parts a and b). These supplemental plans can lower your out-of-pocket costs by covering deductibles, coinsurance, or other medical expenses. the level of coverage will depend on the plan you select.
what kind of coverage can you get?
The benefits of the medicare supplemental plans are standardized in all the companies. This means that a Plan G from AARP will offer the same health care benefits as a Plan G from another company. This standardization makes it easy to compare plans, and the medicare.gov medigap coverage chart can help you select the right plan for your needs.
You can sign up for a medigap policy when you first become eligible for medicare or during open enrollment. aarp/unitedhealthcare offers all available medigap plan letters. however, available plans may vary by location and Medicare qualification date.
what unique features do aarp medigap plans have?
Although the core medical benefits of AARP plans will be the same as those offered by other insurance companies, AARP Medigap plans offer access to additional programs, which add significant value. aarp medigap subscribers also get:
criticism and customer satisfaction
aarp/unitedhealthcare has mediocre customer reviews with various metrics indicating user complaints and frustrations.
across all of its divisions, unitedhealth group has a slightly higher complaint rate compared to a typical insurer of its size. The National Association of Insurance Commissioners (NAIC) Company Complaint Index is 1.22, which means there is a 22% higher than normal complaint rate.
Looking specifically at unitedhealthcare medicare supplemental plans, the naic reports that approximately 90% of complaints relate to claims handling.
at better business bureau (bbb), both unitedhealthcare and aarp receive an a+ rating, but their online customer reviews on the platform are low, scoring 1.06 to 1.28 out of 5. complaints common concerns about aarp include excessive spamming, service, and aggressive marketing.
unitedhealthcare also ranks in the bottom third of providers in j.d. power survey on customer satisfaction with medicare advantage plans. Although plans for Medicare Advantage are managed separately from Medicare Supplement insurance, poor customer service ratings provide an eye-opening perspective.
however, unitedhealthcare has a strong ability to pay your claims. is one of the largest health insurance companies and has received strong financial ratings from am best with a rating of a (excellent).
frequently asked questions
sources and methodology
Above comparisons are based on plan coverage levels, policy details, third-party ratings, and sample cost data for 2021. Price quotes for a female non-smoker were analyzed by age , location and provider. Sources include medicare.gov, aarp, unitedhealthcare, humana, cigna, bluecross blueshield, the better business bureau, j.d power, and the national association of insurance commissioners.
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