What is the best supplemental health insurance for seniors

Medigap plans are sold by private insurance companies, but the plans’ Medicare coverage is regulated by the government. So, for example, Medigap Plan G has the same Medicare benefits regardless of which insurance company you choose.

In most states, there are 10 standardized Medigap plan types. The insurance companies are responsible for which plan types they sell, what they charge and whether to include extra perks, as well as providing customer service. Each company has different strengths and weaknesses.

Best Medicare Supplement Insurance companies

NerdWallet compares Medigap supplemental health insurance companies' performance in terms of plan choices, member satisfaction, prices, extra perks, service area and more.

Here’s how the top Medicare Supplement Insurance companies stand out in 2022:

Best for Medigap plan options: AARP/UnitedHealthcare Medicare Supplement Insurance

Service area: 50 states and Washington, D.C.

Medigap plans offered: A, B, C, D, F, G, K, L and N (plan availability varies by location).

Standout feature: While many competitors offer four or five Medigap plans, AARP/UnitedHealthcare offers every Medigap plan except for Plan M, and its Medigap policies are available everywhere in the country.

AARP’s Medicare Supplement Insurance plans are insured exclusively by UnitedHealthcare, which is the largest provider of Medicare Supplement Insurance. AARP/UnitedHealthcare Medigap plans have low complaint rates when compared to most competitors. There are many configurations of plan types and extras available — sometimes so many that it might be overwhelming to choose.

Pros

• Nine out of 10 standard Medigap plans are available to qualifying applicants.

• Plans are available in every state — even Massachusetts, which competitors tend to skip.

• Customers complain about AARP/UHC Medigap plans at relatively low rates, and UHC does well on third-party customer satisfaction ratings.

Cons

• The health and wellness discounts sold as “wellness extras” are sometimes costly, while you can find similar perks for free from some competitors.

• Some plans are offered with as many as three variations, each with different pricing, extras and restrictions, which might be confusing.

• Medicare Select plans have lower premiums, but you must stay in-network for inpatient care.

Best for member satisfaction: Mutual of Omaha Medicare Supplement Insurance

Service area: Every state except Massachusetts, plus Washington, D.C.

Medigap plans offered: A, F, G and N (plan availability varies by location).

Standout feature: Members file significantly fewer complaints about Medigap policies from Mutual of Omaha than other insurers. The same very low complaint rate holds true when averaged across all of Mutual of Omaha’s insurance products.

Unlike many Medigap insurers, Mutual of Omaha doesn’t sell Medicare Advantage or other health insurance plans. Its insurance offerings are meant to complement your main health insurance, such as Medicare Supplement Insurance, life insurance and long-term care insurance. It doesn’t offer as many plan types as some competitors, but member satisfaction is high.

Pros

• Members file complaints at rates about 62% below the average for all Medigap insurers on the market.

• Mutual of Omaha sells Medicare Supplement Insurance in every state but Massachusetts.

• A discount of up to 12% for some applicants living with another adult is larger than many other providers offer.

Cons

• For new Medicare beneficiaries, only Medigap plans A, G and N are available in most states.

• Mutual of Omaha spends less on member benefits and more on overhead than the average Medigap insurer.

• It can be challenging to find some information on Mutual of Omaha’s website.

Best for low premiums: Aetna Medicare Supplement Insurance

Service area: 43 states.

Medigap plans offered: A, B, D, F, G and N (plan availability varies by location).

Standout feature: Aetna’s prices for the most popular plans for new Medicare members, Medigap Plan G and Plan N, are among the lowest on the market.

Aetna is the third-largest health insurance company in the U.S. It has some of the lowest premiums for popular Medigap plans like Plan G and Plan N. Its prices aren’t as low for some other plan options, though, and customers file complaints about Aetna’s Medigap insurance at rates significantly above the market average.

Pros

• Aetna offers some of the lowest rates for Medigap Plan G and Plan N — the most popular plans for new Medicare members.

• Aetna spends more of its income from premiums on benefits for members, compared to the average Medigap insurer.

Cons

• Aetna doesn't offer online price quotes in a number of the states where it sells plans. In states where you can get online pricing, you still need to call to apply.

• Aetna’s Medigap plans have complaint rates significantly higher than the industry average.

• Other Medigap insurers offer more discount options and extra benefits than Aetna.

Best for extra benefits: Anthem Medicare Supplement Insurance

Service area: 16 states.

Medigap plans offered: A, F, G and N (plan availability varies by location).

Standout feature: In some locations, Anthem offers the option to add on coverage with cost sharing for services not included in standard Medigap plan types. For example, Anthem Extras packages can cover some costs for dental cleanings, dental procedures and eye exams, plus an allowance for glasses frames or contact lenses.

Anthem is the second-largest health insurer in the U.S. It offers Medicare Supplement Insurance both as part of the Blue Cross Blue Shield collective and on its own. Anthem’s optional dental and vision coverage add-ons are rare among competitors. It offers only a few Medigap plan types, though, and serves relatively few states.

Pros

• Anthem offers several tiers of dental and vision coverage to mix and match with Medigap plans.

• Some members can save on premiums with discounts based on your household and payment methods.

• Anthem offers extra perks for a variety of fitness, health and wellness products and services.

Cons

• Only a few Medigap plan types are available, although they are the most popular ones.

• Medigap policies are available in only about one-third of states.

• Anthem spends more on overhead and less on member benefits than other major Medigap insurers.

Best for nationwide availability: Blue Cross Blue Shield Medicare Supplement Insurance

Service area: 50 states and Washington, D.C.

Medigap plans offered: A, B, C, D, F, G, K, L, M and N (plan availability varies by location and BCBS licensee).

Standout feature: There’s at least one Blue Cross Blue Shield company serving every state, so wherever you are, it’s likely that there are BCBS Medigap plans available to you.

Blue Cross Blue Shield is a collective of 34 companies. Together, BCBS companies make up about 42% of the U.S. health insurance market. BCBS companies offer Medicare Supplement Insurance everywhere in the country, but because each of the companies functions independently, plan offerings, pricing, and other details will vary.

Pros

• In some locations, BCBS companies offer all 10 Medigap plan types to qualifying applicants.

• BCBS tied for the top score on the American Customer Satisfaction Index for health insurers.

• BCBS companies offer Medigap policies in all 50 states and Washington, D.C.

Cons

• Prices, plan types, extras and member experiences can vary depending on your local BCBS company.

• Both Medigap Plan A and Plan N were at least 50% more expensive than the market’s best prices, on average, in quotes obtained by NerdWallet.

• BCBS offers Medicare Select plans that are cheaper than the standard versions, but you have to stay in-network.

Medigap plan types

Find the right Medicare Supplement Insurance plan

Because Medigap plans are standardized, you can get precisely the same Medicare benefits from any company offering the plan. So when you shop, keep these considerations in mind to find the best policy to fit your needs:

• Is your preferred plan available? Health insurance companies don’t always sell every plan, so check who sells the plan you want to buy in your area.

• What are the premiums? Prices for the same plan can vary between companies, so check to find the most competitive rates.

• Will your premiums change over time? Most policies cost more as you age, but some companies offer policies that let you lock in a price when you sign up.

• Are there extras? Medigap plans’ core benefits are standardized, but in certain cases, some companies include such perks as discount programs or gym memberships.

If you have additional questions about Medicare, visit Medicare.gov or call 800-MEDICARE (800-633-4227, TTY 877-486-2048).

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