If you are nearing retirement age, it is important to start thinking about your health insurance options. Medicare Supplement plans can be a great choice for those who are looking for comprehensive coverage. But how do you know which plan is the right one for you? And how do you compare prices and policies between different providers? In this blog post, we will help make the process a little bit easier for you. We will compare AARP Medicare Supplement plans with some of the other top providers in the industry.
Quick Thoughts on AARP
Medicare Supplement Insurance (also called Medigap) plans from AARP/UnitedHealthcare are a good choice for most people. The customer service rating is not as strong as that of some other companies. However, the wide range of policy selections makes it easy to choose the best plan for you, and the AARP endorsement can give you peace of mind.
They’re some of the best AARP Medicare Supplement plans available, and they’re also the most popular plans, with about 32% of Medicare Supplement subscribers having an AARP/UnitedHealthcare plan.
Insurance policyholders must be AARP members, and you can join during your insurance application if you’re not already a member. Membership costs are minimal at only $16 per year.
Costs for AARP Medigap insurance vary widely, ranging from about $60 to $300 per month. Getting a price quote based on your situation can help you understand if an AARP policy is the best deal for you.
Despite the large price differences, AARP Medicare Supplement plans are usually a good value. For example, a 65-year-old may pay slightly more for an AARP Medigap plan, but the slower age-based price increases could mean they’ll have the cheapest plan when they’re in their 80s and 90s. This reduces the total lifetime spending.
For those who want an insurance discount, AARP Medicare Supplement plans offers low-cost alternatives that limit some coverage to in-network facilities and providers. These plans could save you $200 to $250 per year on your insurance costs, and with UnitedHealthcare’s large network of providers, you may not see a meaningful impact on health care access.
How Do Their Plans Work?
When you buy an AARP Medicare Supplement Insurance plan, you’re getting a policy from UnitedHealthcare. As part of the business agreement, AARP endorses and does marketing for select UnitedHealthcare plans, and in turn, AARP gets an estimated 4.95% fee for each plan sold.
Medigap policies give you additional benefits on top of Original Medicare (Parts A and B). These supplemental plans can reduce your out-of-pocket expenses by covering deductibles, coinsurance, or other medical expenses. The level of coverage will depend on the plan you select.
What Types of Coverage Do They Offer?
The benefits of Medicare Supplement plans are standardized across all companies. This means 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 Medigap coverage chart from Medicare.gov 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 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 Medicare Supplement ranks as the easiest-to-use Medicare Part D provider.
What unique features do AARP Medigap plans have?
Even though the major medical benefits of AARP plans will be the same as those offered by other insurance companies, AARP Medigap plans offer access to additional programs, adding significant value. AARP Medigap subscribers also get:
- 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, could help you reduce your car insurance rates.
If this sounds like something you would be interested in. Please give us a call.