AARP/UnitedHealthcare is our pick for the best Medicare Supplement company due to its excellent third-party ratings and affordable pricing for Plan G.
Medicare supplement plans, also known as Medigap policies, are designed to fill coverage gaps in Original Medicare. These policies are sold by private companies and standardized to follow Medicare rules. They help cover coinsurance, copayments, and deductibles that would otherwise be your responsibility. There are 10 types of Medigap plans, each designed to cover different costs and services.
To determine the best Medigap companies, we compared pricing, available plans, extra features, financial stability assessments from the credit ratings agency AM Best, and quality and customer satisfaction ratings from the National Committee for Quality Assurance (NCQA), which measure member experiences across other types of Medicare plans. We used NCQA ratings to help measure each provider's overall quality, though ratings aren't currently available for Medigap plans.
Best Medicare Supplement (Medigap) Companies
- Best Overall: AARP/UnitedHealthcare
- Most Medigap Plan Types: Blue Cross Blue Shield
- Best Medigap High-Deductible Plan G Provider: Mutual of Omaha
- Best for Financial Strength: State Farm
Best Overall : AARP/UnitedHealthcare
![AARP](https://www.investopedia.com/thmb/7-VPrl0UEh27yXyOuQRJlVnp-HY=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/AARP-4be260596bb142d9a62bbb693e7d041c.png)
AARP
- Ratings: A+ from AM Best, 3.9 stars from NCQA
- Discounts: Multi-policy, electronic funds transfer and annual payer discounts
- Additional Features: Online brain health program
AARP/UnitedHealthcare has high third-party ratings and the best Medicare Supplement Plan G pricing among the providers we reviewed. Additionally, it ranks highest among insurers we analyzed for Medigap insurance.
Highest NCQA rating of any Medigap provider
A+ financial strength rating
24/7 nurse line
Generous new enrollment discount
Only available to AARP members
Plans D, M, and high-deductible Plans G and F not available
With UnitedHealthcare, you may be eligible for a new enrollment discount of up to 39% (depending on where you live), plus a 7% multi-member discount. It also has favorable third-party ratings—the company’s National Committee for Quality Assurance (NCQA) rating, which measures member experiences across all Medicare plans, is 3.9 out of 5 stars, beating every competitor offering Medigap policies. UnitedHealthcare has an A+ (Superior) financial strength rating from AM Best, meaning there is a strong chance it will be a to pay your claims.
AARP Medigap policies also come with robust additional benefits in most geographical areas, including a free gym membership, an online brain health program, discounts on dental, vision, and hearing care, a driver safety course, and access to a 24/7 nurse line.
UnitedHealthcare offers the best pricing for Plan G of the providers we reviewed, with an average premium of $166 across four states. However, UnitedHealthcare doesn’t offer the affordable high-deductible Plan G, so some budget-conscious applicants may be better served by another company.
Learn more in our UnitedHealthcare Medicare Insurance Review.
UnitedHealthcare Group is being sued for allegedly using a flawed artificial intelligence algorithm that denies rehabilitation care for Medicare Advantage patients despite knowing that the algorithm has a 90% error rate.
Most Medigap Plan Types : Blue Cross Blue Shield
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Blue Cross/Blue Shield
- Ratings: 3.5 stars from NCQA
- Discounts: Wellness discounts and bank draft discount
- Additional Features: Dedicated care consultant
Blue Cross Blue Shield offers every Medigap plan and a substantial discount program, though plan availability varies by state.
Offers every Medigap plan, letters A through N
Optional dental, hearing, and vision coverage
Extensive discount program offered to most members
Plan availability varies by state
Blue Cross Blue Shield offers the most Medigap plan options, but since it operates as a group of companies, availability varies by geographical area. For example, the company’s high-deductible Plan G is only available in select states.
If the options in your area meet your needs, Blue Cross Blue Shield membership offers many benefits. You can get discounts on wellness-related products and services and enroll in optional dental, vision, and hearing coverage. Blue Cross Blue Shield also offers Part D prescription drug coverage to complement your Medigap policy. Most members also have access to a 24/7 nurse line.
Pricing for Blue Cross Blue Shield’s Medigap Plan G is better than average relative to the industry. The company’s NCQA rating, which is 3.5 out of 5 stars, is also a little better than average.
Learn more in our Blue Cross Blue Shield Medicare Insurance Review.
"Medigap plan types are designated by the letters A through N (some letters are skipped), each designed to fill a specific gap in your coverage. Plan types A and B cover some basic gaps at the lowest monthly cost, while D, F, and G provide more comprehensive coverage at a higher price."
— Shanker Narayan, Investopedia Research Analyst
Best Medigap High-Deductible Plan G Provider : Mutual of Omaha
![Mutual_of_Omaha](https://www.investopedia.com/thmb/D3IorvvopzoeP3INjSKpyRqtEiA=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Mutual_of_Omaha-854e01d49f3e43a6ba1e5567bf207b9d.jpg)
Mutual_of_Omaha
- Ratings: A+ from AM Best
- Discounts: Discounts on vision, hearing, and healthy living products
- Additional Features: Offers dental insurance
Mutual of Omaha offers an affordable, widely available, high-deductible Plan G, which makes it our pick as the best Medigap high-deductible Plan G provider.
Widely available high-deductible Plan G
A+ financial strength rating
Offers Part D, dental insurance, and a discount program
Customer support during business hours only
Mutual of Omaha offers high-deductible Plan G in 45 states and Washington, D.C. While BCBS scored higher overall, it doesn’t offer the plan in as many areas. Mutual of Omaha’s average pricing for the standard Plan G is better than the industry average, though it varies by state. Plan G is one of the most comprehensive Medigap plans available. It covers any Part B excess charges and the Part A deductible but not the Part B deductible.
Mutual of Omaha is also a Part D provider, offers dental insurance, and provides discounts on vision, hearing, and healthy living products. The company also offers an optional fitness program for $29.99 per month and access to a free wellness app. However, other Medicare Part D plans are better rated. Customer support hours are also limited to business hours, while other companies offer weekend support or even 24/7 customer service.
Best for Financial Strength : State Farm
![State Farm](https://www.investopedia.com/thmb/Jt7ggzysG4VB0aMTTsdqnRTJZsU=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/State-Farm_logo-320-height-7087a2a1e9ad4324aa85cb36f552f78f.png)
State Farm
- Ratings: A++ from AM Best
- Discounts: Not advertised
- Additional Features: High customer satisfaction
State Farm has an incredibly high financial strength rating from AM Best and a strong customer satisfaction record, making it the best Medigap provider for financial strength.
Highest possible financial strength rating from AM Best
Far fewer complaints than expected with the NAIC
Excellent pricing for Plan G
Limited information without an agent
Doesn’t offer high-deductible Plan G
State Farm has an A++ (Superior) financial strength rating from AM Best, which is the highest rating available. This means the company is unlikely to default on its financial obligations and has a superior ability to pay claims. Also, the company received far fewer complaints than expected relative to its size. This suggests that State Farm customers are generally satisfied with their policies.
Pricing for Plan G policies is also excellent. However, the company doesn’t offer all plan types, including high-deductible Plan G. While other companies provide extra benefits and discounts with their plans, State Farm doesn’t advertise similar programs. Information about State Farm’s Medigap plans is hard to find online, so you need to contact an agent to get details or purchase a policy.
The Bottom Line
UnitedHealthcare is the best option for most people seeking a Medigap plan. It’s worth getting an AARP membership to access UnitedHealthcare’s excellent prices, high third-party ratings, and plentiful benefits. However, if you’re looking for a broader selection of plan types, including high-deductible Plan G, Blue Cross Blue Shield may be better, depending on its availability in your state. The company also offers an extensive discount program to most members.
Mutual of Omaha is a good alternative if Blue Cross Blue Shield isn't available in your state, especially if you want affordable dental coverage. State Farm is the way to go if you want the provider with the highest financial strength ratings.
Research Insight
"Your location plays a large part in determining which Medigap policies you can access. A company might say on its website that it offers seven of the 10 policy types, but depending on demand and regulations, it might only offer four in your state. Be sure to check on availability in your area when choosing a Medicare Supplement Plan."
— Shanker Narayan, Investopedia Research Analyst
Why You Should Trust Our Expert Insurance Reviewers
Investopedia collected data points related to dozens of important criteria for choosing Medigap plans, across eight companies. We used this data to review each company for financial stability, patient satisfaction, coverage options, cost, and other features to provide unbiased, comprehensive reviews to help you make the right decision.
Investopedia launched in 1999, and has been helping readers find the best Medigap companies since 2020. We are dedicated to helping you find the right Medigap provider for your needs.
Compare the Best Medicare Supplement (Medigap) Companies
Company | Ratings | Discounts | Additional Features |
AARP/UnitedHealthcare
Best Priced Medicare Supplement Plan G |
A+ from AM Best, 3.9 stars from NCQA | Multi-policy, electronic funds transfer, and annual payer discounts | Online brain health program |
Blue Cross Blue Shield
Most Medigap Plan Types |
3.5 stars from NCQA | 5% multi-policy discount and other wellness discounts | Inexpensive dental, vision, and hearing coverage |
Mutual of Omaha
Best Medigap High-Deductible Plan G Provider |
A+ from AM Best | Discounts on vision, hearing, and fitness | Offers dental insurance |
State Farm
Best for Financial Strength |
A++ from AM Best | Not advertised | High customer satisfaction |
What Is Medicare Supplement Insurance (Medigap)?
Medicare Supplement Insurance, also known as Medigap, is a type of health insurance policy offered by private companies to help pay for out-of-pocket costs in Original Medicare coverage. These costs include copayments, coinsurance, and deductibles. Medigap plans can also cover services that Original Medicare doesn't, like emergency medical care when traveling outside the U.S. To be eligible for a Medigap policy, you must have Medicare Part A and Part B.
Medigap plans are identified by letter (A–D, F, G, K–N). Each letter plan offers a different set of benefits, and the benefits of each plan with the same letter are standardized. For example, Plan G from one company provides the same benefits as Plan G from another company. However, premiums can vary across insurers and locations.
What Does Medigap Cover?
In addition to copayments, coinsurance, and deductibles from Original Medicare, some Medigap plans help cover:
- Skilled nursing facility care
- Foreign travel emergency health care
- Medicare Part B excess charges
What Does Medigap Not Cover?
Medigap policies do not cover:
- Long-term care
- Vision or dental care
- Hearing aids
- Eyeglasses
- Private duty nursing
Medigap plans are standardized, but premiums can vary. Choosing the right plan requires comparing coverage details and prices from different insurers.
What Are the Alternatives to Medigap?
You might want an alternative to Medigap for your health coverage for several reasons, including cost and complexity. Medicare Advantage plans are a popular choice, with 30.8 million enrollees in 2023. These plans, sold by private companies, include drug, dental, and vision coverage. They can have lower premiums but may have higher out-of-pocket costs.
Medicaid is another option for those who qualify. It can cover costs not usually covered by Medicare, like nursing home care and personal care services.
Is Medigap Available in Every State?
Medigap plans are available in every state, but the offerings may vary in different places. Most states have standardized Medigap plans identified by letters A through N, but Massachusetts, Minnesota, and Wisconsin have different sets of standardized plans. Different state regulations may also influence Medigap prices and plan offerings. For example, Connecticut, Massachusetts, Maine, and New York have guaranteed-issue protections prohibiting insurers from denying applicants coverage based on pre-existing conditions.
What Is the Downside to Medigap Plans?
Can reduce out-of-pocket costs of Original Medicare
Accepted by any health care provider that takes Medicare
Standardized plans are easy to compare
Cost, especially for age-rated plans, can be high
Limitations on when you can get a plan without medical underwriting
Does not include prescription drug coverage, dental, vision, or hearing
Frequently Asked Questions
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Why Do People Choose Medigap Over Medicare Advantage?
People often opt for Medigap because it allows you to choose any doctor or hospital that accepts Medicare patients. On the other hand, Medicare Advantage plans only let you pick providers and hospitals in your network.
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Is Medigap More Expensive Than Medicare Advantage?
Medicare Advantage bundles all your coverage into one policy, making it less expensive, while Medigap is purchased on top of an existing Medicare policy. However, Medigap, paired with an Original Medicare plan, sometimes offers more coverage than Medicare Advantage. Determining which option works best depends on whether you think the additional coverage is worth the extra cost.
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Do Medigap Premiums Increase With Age?
Medigap premiums can be based on age, depending on your policy type. The first type is a "community-rated" policy, which charges everyone the same premium and does not increase with age. The second is an "issue-age-rated" policy that charges premiums based on the age you enrolled in Medigap, with lower costs for younger policyholders. "Attained-age-rated" is the final policy type, and premiums are based on your current age, meaning they increase as you get older.
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What Is Medicare Supplement Plan G?
Medicare Supplement Plan G covers every gap in Original Medicare except the Part B deductible, which is $240 for 2024. You won’t pay any copayments or coinsurance with Plan G, and it provides some coverage for international emergency care. However, unlike Plans K and L and Medicare Advantage plans, it does not limit your maximum out-of-pocket expenses.
Some states also offer a high-deductible Plan G. This plan has lower premiums, but you must pay your Original Medicare coinsurance, copays, and deductibles until you’ve spent enough to meet the Plan G deductible, which is $2,800 in 2024.
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Can You Enroll in Medicare Supplement Plans at Any Time?
The best time to enroll in a Medicare supplement plan is during Medigap open enrollment. This period begins the first month you are enrolled in Medicare Part B and are 65 or older. It lasts six months and can’t be repeated. If you apply outside of open enrollment, you must meet medical underwriting requirements. In most states, insurers can deny you a policy outside of open enrollment if you have pre-existing conditions.
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Which Medigap Plan Do Most People Choose?
The most popular Medigap plan type is Plan F. It had 5.7 million enrollees as of 2021, not including California. However, Medigap Plan F is no longer available if you turned 65 after Jan. 1, 2020.
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What Is the Average Cost of a Medigap Plan?
Costs can vary depending on the provider, plan type, and level of benefits. We found that monthly costs can range from as low as $64 for High-Deductible Plan G and as high as $461 for Plan F. In contrast, Medicare Advantage plans have no or very low premiums.
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Is There a Medigap Plan That Covers Everything?
The most comprehensive Medigap plan is Plan F. It covers out-of-pocket costs for Medicare Parts A and B, coinsurance for skilled nursing facilities, and foreign travel emergencies. However, it's no longer available if you turned 65 after Jan. 1, 2020. The next-most comprehensive option is Plan G, which covers everything Plan F does except for the Medicare Part B deductible.
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Companies We Reviewed
AARP / UnitedHealthcare, Blue Cross Blue Shield, Wellcare, Mutual of Omaha, State Farm, Humana, Cigna, Aetna / CVS Health
How We Chose the Best Medicare Supplement Plan Providers
To identify which health insurance companies to review, we analyzed business and market insight databases, including Statista, Plunkett, and Gale. We also considered user-generated data from Google to determine public interest and trends in Medicare plans.
We collected data from third-party rating agencies like the credit rating agency AM Best and the National Committee for Quality Assurance (NCQA), an independent organization that rates health insurance plans on quality and customer satisfaction. We also gathered data from government websites and databases provided by the Centers for Medicare and Medicaid Services (CMS), such as CMS.gov and Healthcare.gov, and from insurers via websites, media contacts, and existing partnerships. The data collection process spanned Sept. 15 to Sept. 29, 2023.
We then developed a quantitative model that scores each Medicare Supplement plan provider based on four major categories and six criteria that are crucial in evaluating the company's offerings and benefits.
We weighted the four categories as follows for this article:
- Cost: 40%
- Plan features: 30%
- Plan quality and customer satisfaction: 20%
- Company financial strength: 10%
Read our full methodology for reviewing Medicare insurance providers.
Your Guide to Medicare Plans
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