Strong coverage is offered at a reasonable price through AARP Medicare Supplement Insurance. Aside from the conventional benefits, plans also offer subsidized access to vision, dentistry, hearing, fitness, and other services. Average costs are varied.
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Our thoughts: Why we recommend AARP
Medicare Supplement
The majority of people should choose one of the AARP/UnitedHealthcare Medicare Supplement Insurance (commonly known as Medigap) plans. The grade for customer service is not as high as it is for some other businesses. The AARP endorsement can give you peace of mind, and the vast range of policy options make it simple to select the appropriate plan for you.
With around 32% of Medicare Supplement subscribers having an AARP/UnitedHealthcare plan, they're among the greatest Medicare Supplement plans that are available and also among the most popular plans.
All insurance policyholders must be AARP members; if you are not a member already, you can become one when you apply for insurance. Costs for membership are quite low, at $16 a year.
Costs for AARP Medigap insurance vary widely, ranging from about $60 to $300 per month. You can determine whether an AARP coverage is the best option for you by requesting a price quote based on your specific circumstances.
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| AARP Medicare Supplement 2023 |
The majority of the time, AARP Medicare Supplement plans are a decent deal despite the significant price variations. For instance, a 65-year-old might pay a little bit more for an AARP Medigap plan, but because age-based price increases are likely to be slower, they might have the most affordable plan available when they are in their 80s and 90s. The overall lifetime cost is decreased as a result.
AARP Medigap offers affordable alternatives that restrict some coverage to in-network facilities and providers for people looking for a savings on insurance. With UnitedHealthcare's extensive provider network, you might not notice a significant difference in your ability to get healthcare with these plans, which could save you $200 to $250 year on insurance premiums.
Medigap costs vary by state
The price of additional insurance varies greatly. This is largely brought on by variations in pricing laws between states.
Eight states forbid price increases based on a person's age or health. Most other states permit age-related increases in monthly expenses. Additionally, three states have their own types of plans and prices that do not adhere to the conventional Medigap plan alphabet.
The average prices for each of these three Medicare Supplement plans are shown below.
1. AARP Medigap costs in states where age doesn’t affect the price
Insurance providers are not permitted to use your age as a factor in determining your monthly premiums in states using this pricing system. You can anticipate more consistent pricing overall, while your prices may rise over time due to inflation or changes in the industry.
Comparing prices and policies for the AARP Medicare Supplement
Average cost for AARP Medigap coverage
Plan | Monthly cost |
|---|---|
| Plan A | $158 |
| Plan B | $242 |
| Plan C | $288 |
| Plan F | $256 |
| Plan G | $193 |
| Plan G (1) | $173 |
| Plan K | $70 |
| Plan L | $136 |
| Plan N | $167 |
| Plan N (1) | $150 |
Data notes:
- Plan G (1) and Plan N (1) have the standard benefits of their plan letter, but coverage is limited to in-network providers for some health care services, including hospitalization.
- Estimates are based on a 65-year-old female nonsmoker in Seattle, Hartford, Conn. and Little Rock, Ark.
- A 75-year-old was used for Plan C and F cost estimates because these plans are not offered to current 65-year-olds.
2. AARP Medigap costs in states where age affects pricing
For a 65-year-old person living in a state with this pricing scheme, the average monthly cost of the AARP Medigap Plan G is $124. The typical monthly premium for a 75-year-old is $199, and for an 85-year-old, it is $209.
The monthly premiums for Plan K, the affordable Medicare Supplement plan we suggest, range from $58 to $98.
Price hikes by AARP/UnitedHealthcare are based on what they refer to as an enrollment discount.
- From age 65 to 68, policyholders are given a 39% discount.
- Then, the discount is reduced by three percentage points each year until age 81.
- After age 81, you'll pay the standard rate without any additional age-related price changes.
This pricing structure is unique to AARP, and sample Medigap policies from Humana have a steady 3% increase each year.
Age 65
Age 75
Age 85
Data notes:
- Plan G (1) and Plan N (1) have the standard benefits of their plan letter, but coverage is limited to in-network providers for some health care services, including hospitalization.
- Based on estimates for a female nonsmoker in Dallas, Chicago and Charlotte, N.C.
3. AARP Medigap costs in states with alternative plans
Massachusetts, Minnesota, and Wisconsin have various systems for their Medicare Supplement plans. These states employ different plan names as opposed to the conventional plan letters and perks. Here are the typical premiums for AARP Medicare Supplement plans in various states for a 65-year-old female nonsmoker. Be aware that Wisconsin allows pricing hikes based on age but not Massachusetts or Minnesota.
- Minnesota (Basic and Extended Basic plans): $192-$239
- Massachusetts (Core and Supplemental 1A plans): $123-$172
- Wisconsin (Basic plan and Basic plan with copayments): $86-$126
How AARP Medigap costs compare to other insurance companies
Comparing costs might be challenging due to varying plan structures; the most accurate comparison will be based on insurance quotes specific to your situation and location. The various algorithms for price rises can have an impact on your overall lifetime costs in places where prices grow as you become older. A 65-year-old female may pay more for an AARP Medicare Supplement plan than she would for a comparable one from Humana or BlueCross BlueShield, for instance. However, in this instance, price hikes for AARP plans are more gradual. By the age of 85, AARP Medigap is less expensive than BlueCross BlueShield, Humana, and Cigna.
You can ask for several price quotations to find the greatest deal now and for many years to come and to understand how aging will effect your costs.
How do AARP Medicare Supplement plans work?
An AARP Medicare Supplement Insurance plan is actually a UnitedHealthcare policy when you purchase one. According to the terms of the contract, AARP promotes and markets a few UnitedHealthcare products in exchange for an estimated 4.95% commission on each plan sold.
In addition to Original Medicare, Medigap plans provide you with additional benefits (Parts A and B). By paying for deductibles, coinsurance, or other medical charges, these add-on plans can lower your out-of-pocket costs. The plan you choose will determine the extent of coverage.
What type of coverage can you get?
All firms offer the same benefits with their Medicare Supplement plans. Accordingly, AARP's Plan G will provide the same health benefits as a Plan G from another company. Because of this uniformity, it is simple to compare plans, and Medicare.gov's Medigap coverage chart can assist you in choosing the best one for your requirements.
When you first become eligible for Medicare or during open enrollment, you can enroll in a Medigap policy. All Medigap plan letters are accessible through AARP/UnitedHealthcare. However, depending on the location and the Medicare qualification date, several plans might be offered.
- What it covers: All Medigap plans cover some portion of out-of-pocket costs (deductibles and coinsurance) for Medicare Part A (hospital insurance) and Medicare Part B (medical insurance).
- What it doesn’t cover: A supplemental plan will not cover prescription drugs. For that, you’ll need a separate Medicare Part D plan, and AARP/UnitedHealthcare ranks as the easiest-to-use Medicare Part D provider.
What unique features do AARP Medigap plans have?
Even while AARP plans' primary medical coverage are identical to those provided by other insurance providers, AARP Medigap plans give access to extra programs, which significantly increases value. In addition, AARP Medigap members receive:
- Vision: Discounted eye exams, glasses and contacts (AARP Vision Discount).
- Dental: Discounted rate of 30%-40% on select services through Dentegra.
- Hearing: Discounted screenings and hearing aids (HearUSA).
- 24/7 nurse line: Ability to call a registered nurse with questions about your health, medication costs and more.
- Fitness: Free gym membership where available (Renew Active by UnitedHealthcare). AARP insurance stopped offering SilverSneakers in 2019.
- Mental sharpness: Brain health games and activities (AARP Staying Sharp).
- Driver safety: Safe driving course, which could help you reduce your car insurance rates.
Customer reviews and satisfaction
Poor user satisfaction ratings are reported for AARP/UnitedHealthcare, and a number of measures show user annoyance and frustration.
In comparison to a typical insurer of its size, UnitedHealth Group has a slightly higher percentage of complaints across all of its businesses. The National Association of Insurance Commissioners' (NAIC) complaint index for the company is 1.22, which indicates that there are around 22% more complaints than is average.
The NAIC states that roughly 90% of complaints particularly pertaining to UnitedHealthcare Medicare Supplement plans are concerning claim handling.
Both UnitedHealthcare and AARP have an A+ rating with the Better Business Bureau (BBB), yet their online user reviews on the site only give them ratings of 1.06 to 1.28 out of 5. Excessive junk mail, subpar customer service, and aggressive marketing are common criticisms of AARP.
Additionally, according to J.D. Power's study on consumer satisfaction with Medicare Advantage plans, UnitedHealthcare is ranked among the poorest third of providers. Despite the fact that Medicare Advantage plans and Medicare Supplement Insurance are managed separately, the dismal customer service rating tells a story.
UnitedHealthcare, however, has a good ability to pay its claims. It is one of the biggest health insurance providers, and AM Best has given it a good financial rating of A (outstanding).
A lot of people have questions
Is AARP supplemental insurance good?
A UnitedHealthcare/AARP supplemental insurance plan offers good value. It offers savings on vision, dentistry, hearing, gym membership, and other services, which might help you lower your out-of-pocket expenses for medical treatment.
Is AARP the same as UnitedHealthcare?
You can get insurance via UnitedHealthcare with an AARP Medicare coverage. In accordance with a business agreement, AARP provides marketing and endorsement in return for a percentage of what policyholders pay.
Does AARP pay the Medicare deductible?
Depending on the plan you select, the deductible coverage will change. The Medigap Plans B, D, G, and N all fully cover the Medicare Part A deductible, but Plans K, L, and M only partially do so.
The Medigap plans C and F fully cover the Medicare Part A and Part B deductible. These two add-on plans, however, are only accessible to anyone who qualified for Medicare before 2020.
What is AARP Medicare Supplement Plan F?
The most popular and comprehensive Medicare Supplement Plan F is only available to people who were eligible for Medicare before 2020, although it has the largest enrolment. During the yearly open enrollment period, if you meet the requirements, you can enroll in Plan F. If you're not eligible, Plan G is the best overall option.
Sources and methodology
The comparisons made above are based on the extent of plan coverage, the specifics of the policy, third-party rankings, and hypothetical cost information for 2021. Based on the female nonsmoker's age, region, and provider, price quotes were examined. The National Association of Insurance Commissioners, AARP, UnitedHealthcare, Humana, Cigna, BlueCross BlueShield, the Better Business Bureau, and Medicare.gov are some of the sources used.
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