AARP Medicare Supplement Review: Analyzing Rates and Coverage

In terms of coverage, AARP Medicare Supplement Insurance is both reliable and affordable. Plans include free or low-cost eye care, dental care, hearing aids, fitness, and other services. The average cost per year is between a few hundred and a few thousand dollars.

Why we think AARP’s Medicare Supplement plans are a good choice

Most people would benefit from AARP/Medicare Supplement Insurance (Medigap) coverage. It’s true that customer service isn’t as highly regarded as it is at other businesses. The variety of plans available makes it simple to find the right one for you, and the organization’s endorsement by AARP is a nice bonus.

About 32% of Medicare Supplement subscribers have a Medicare Supplement plan via AARP or UnitedHealthcare, and for good reason: they’re among the best plans available.

You can become an AARP member at the time you apply for insurance if you are not already one. Just $16 a year is all it takes to become a member.

Depending on your age and health, AARP Medigap insurance can cost anywhere from $60 to $300 a month. The only way to know if an AARP policy is a good deal for you is to get a quote that takes your specific circumstances into account.

AARP Medicare Supplement plans are generally affordable, despite wide price variations. If you’re 65 years old, you might spend a little more on an AARP Medigap plan, but the reduced premium increases as you grow older could make it the best deal over the course of your life. The cumulative cost over one’s lifetime is thereby reduced.

In order to keep premiums low, AARP Medigap offers alternatives to traditional insurance that restrict coverage to hospitals and doctors who are part of the organization’s provider network. With UnitedHealthcare’s large network of providers, you may not notice a big difference in your access to health care even though these plans save you $200 to $250 per year. 

The cost of a Medigap policy varies from state to state

Supplemental plan premiums might range substantially. This is due primarily to variations in pricing policies between states.

Eight states have outlawed price hikes based on a person’s age or health status. In most other places, monthly fees can go up as you get older. Three additional states have their own approaches to Medigap plan letters, costs, and coverage. 

See how much you might expect to pay for an AARP Medicare Supplement in each of these three groups below.

Follow this guide to learn more about AARP Medicare Login.

1. Medigap premiums charged by AARP in states where age is not a factor

In states that follow this system, insurance premiums cannot be increased based on a client’s age. Unless there are significant shifts in the economy or business, you can anticipate more consistent pricing.

Plan NameAverage Monthly Cost for AARP Medigap
Plan A$158
Plan B$242
Plan C$288
Plan F$256
Plan G (Our recommendation for best overall plan)$193
Plan G (1)$173
Plan K$70
Plan L$136
Plan N$167
Plan N (1)$150
  • While both Plan G (1) and Plan N (1) provide the usual benefits outlined in their plan letters, they do so with the caveat that some medical services, including hospitalization, are only covered if they are provided by an in-network provider.
  • All three locations (Seattle, Hartford, and Little Rock) use the same nonsmoking 65-year-old female as their basis for their estimates.
  • Since neither Plan C nor Plan F is currently available to those aged 65 or older, we utilized a 75-year-old to estimate their costs.

2. Medigap premiums charged by AARP in states where rates vary according on age

If you live in one of the states that uses this pricing scheme, you can expect to pay $124 a month for AARP’s Medigap Plan G if you’re 65 or older. Those 75 years old pay an average of $199 per month in premiums, while those 85 and up pay $209.

Monthly premiums for Plan K, our recommended low-cost Medicare Supplement plan, are $58 to $98.

An “enrollment discount” is the basis for the AARP/UnitedHealthcare price rise.

  • Policyholders receive a 39% discount between the ages of 65 and 68.
  • Then, beginning at age 62 and continuing until age 81, the discount will be decreased by 3% annually.
  • There will be no further discounts based on age beyond 81, just the usual cost.

However, Humana’s Medigap policy examples show a consistent annual increase of 3%, making AARP’s pricing scheme stand out.

  • Standard benefits under both Plan G (1) and Plan N (1) apply, as outlined in the respective plan letters, although coverage for some medical treatments, such as hospitalization, is restricted to those provided by providers inside the respective plans’ networks.
  • Calculations were made for a healthy female nonsmoker residing in Dallas, Illinois, and North Carolina’s Charlotte.

3. The cost of AARP’s Medigap policies in states where other options exist

Each state has their own unique framework for their Medicare Supplement policies, and states like Massachusetts, Minnesota, and Wisconsin are no exception. In these jurisdictions, plan names and benefits differ from the norm, and the letters and numbers of standard plans are not used. The following table details the typical monthly premiums for a 65-year-old, nonsmoking female on an AARP Medicare Supplement plan in each of these states. It’s important to know that Wisconsin allows pricing hikes based on age, while Minnesota and Massachusetts do not.

  • 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

Price comparison of AARP’s Medigap coverage to that of competing plans

Cost comparisons are complicated by plans’ varying structures; getting insurance quotes tailored to your needs is the best way to get an accurate picture of the range of prices you’ll face. If you live in a state where prices increase with age, the formulae used to calculate those increases may have a significant impact on your overall expenditures. A 65-year-old woman, for instance, might pay more for AARP Medicare Supplement than she would for a comparable plan from Humana or BlueCross BlueShield. Price hikes are lower for AARP members. By the time a person reaches age 85, AARP Medigap coverage is less expensive than that of Humana, Cigna, and Blue Cross Blue Shield.

Medigap Plan G Comparison

Get various quotations to find the best bargain now and in the future, taking into account how your age may affect the price.

What is the procedure for using AARP’s Medicare Advantage plans?

UnitedHealthcare provides the actual coverage for AARP’s Medicare Supplement Insurance plans. An estimated 4.95 percent of each UnitedHealthcare plan sold goes to AARP as compensation for the organization’s promotion and endorsement of that plan.

In addition to what is provided by original Medicare, Medigap insurance fills in the gaps (Parts A and B). These supplementary policies can help you save money by paying for your insurance deductible, copayments, or other medical costs that your primary policy doesn’t cover. To what extent you are protected depends on the policy you purchase.

For instance, if a doctor’s appointment costs $200, for instance, Medicare Part B might cover $100 of that expense. Then, because of a technique known as “crossover billing,” the AARP Medigap plan might foot the remaining $75. You’ll only have to pay $25 out of pocket for the $200 doctor’s visit once insurance covers the rest.

What kinds of protection are available?

Benefits for Medicare Supplement plans are uniform among insurers. The medical coverage provided by AARP’s Plan G is equivalent to that provided by any other company’s Plan G. This uniformity facilitates plan comparisons, and the Medigap coverage chart available on Medicare.gov can guide you in your choice of supplemental insurance.

Medigap coverage can be obtained either at the time of first Medicare enrollment or afterwards, during open enrollment. AARP/UnitedHealthcare provides access to all Medigap plan options. Plans may be different depending on where you live and when you become eligible for Medicare.

  • All Medicare Part A (hospital insurance) and Medicare Part B (medical insurance) deductibles and copayments are reimbursed in full by all Medigap plans (medical insurance).
  • Prescription medicines are not covered by a supplement plan. You’ll need a separate Medicare Part D plan for that, and user reviews agree that AARP/UnitedHealthcare is the best option.

Can you tell me about the special qualities of AARP’s Medigap policies?

While AARP plans’ major medical benefits will be comparable to those of other insurance providers, the added value of AARP Medigap plans’ access to other programs is substantial. Furthermore, AARP Medigap members receive

  • Discounts on vision care, including tests, glasses, and contacts (AARP Vision Discount).
  • Dentegra offers a 30%–40% discount on some dental services.
  • Hearing: Low-cost hearing tests and devices (HearUSA).
  • All day, every day, you have access to a registered nurse who can answer your questions regarding your health, the cost of your medications, and anything else.
  • Free gym memberships, if available, for fitness (Renew Active by UnitedHealthcare). SilverSneakers insurance coverage was discontinued by AARP in 2019.
  • Fitness for the mind: puzzles and puzzle-solving games (AARP Staying Sharp).
  • Reduce your auto insurance premiums by taking a defensive driving course.

Customer Satisfaction Reviews

User satisfaction with AARP/UnitedHealthcare is low across the board.

UnitedHealth Group, as a whole, has a higher complaint rate than is expected for an insurer of its size. The National Association of Insurance Commissioners (NAIC) complaint index for the company is 1.22, which indicates a 22% higher complaint rate than average.

About 90% of NAIC-reported complaints about UnitedHealthcare Medicare Supplement plans concern claim handling.

At present, UnitedHealthcare and AARP both have an A+ rating on BBB, but their customer reviews there are only 1.06 to 1.28 stars. Many AARP members are unhappy because of the organization’s persistent spam, subpar support staff, and pushy sales tactics.

In addition, J.D. Power’s evaluation of consumer satisfaction with Medicare Advantage plans places UnitedHealthcare in the bottom third of providers. Despite the fact that Medicare Advantage plans are handled independently from Medicare Supplement Insurance, the low customer service ranking still tells a striking story.

UnitedHealthcare’s ability to pay claims, however, is robust. AM Best has given it a solid financial rating of A (outstanding), making it one of the largest health insurance companies.

FAQs on AARP Medicare Supplement Review

Could you tell me if the AARP’s extra insurance is any good?

The AARP/UnitedHealthcare Supplemental Insurance Plan is reasonably priced. It offers savings on a variety of health care services, such as prescription glasses, hearing aids, gym memberships, and more, and can help lower your out-of-pocket expenditures.

To what extent does AARP mirror UnitedHealthcare?

A Medicare plan offered by AARP provides coverage through UnitedHealthcare. In exchange for a cut of the premiums paid by policyholders, AARP’s marketing and endorsement are part of the business deal between the two companies.

Does Medicare’s deductible get paid by AARP?

Depending upon the policy you select, your deductible coverage may change. Plans B, D, G, and N pay the full Medicare Part A deductible, whereas Plans K, L, and M pay a portion of the deductible.

Medicare Parts C and F offer comprehensive protection against the out-of-pocket costs of Medicare Parts A and B. The only people who can get these two extra plans are those who became eligible for Medicare before 2020.

Plan F from the AARP’s Medicare Supplement Insurance Program entails what exactly?

Plan F has the most enrollees and provides the most robust coverage, but it is only available to people who become eligible for Medicare prior to 2020. During the designated time each year, eligible employees can choose to enroll in Plan F. Plan G is the best choice if you don’t qualify for any other plan because it gives you the most protection.

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