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What is the best health insurance for seniors on Medicare?

Published in Medicare Supplement Plans 4 mins read

For seniors on Medicare, the best health insurance typically refers to Medicare Supplement (Medigap) plans, and for most individuals, AARP/UnitedHealthcare is identified as the best company for Medigap coverage, particularly for 2025. These plans are designed to help cover many of the out-of-pocket costs that are not paid by Original Medicare.

Understanding Medicare Supplement (Medigap) Plans

Medicare Supplement Insurance, commonly known as Medigap, is a type of private health insurance that helps you pay for some of the costs that Original Medicare (Part A and Part B) doesn't cover. This includes copayments, coinsurance, and deductibles. When you have Original Medicare and a Medigap policy, Medicare pays its share of the approved amount for covered health care costs, and then your Medigap policy pays its share.

Key Benefits of Medigap Plans:

  • Reduced Out-of-Pocket Costs: Medigap plans can significantly lower your financial responsibility for healthcare expenses.
  • Predictable Expenses: With a Medigap plan, your healthcare costs become more predictable, making budgeting easier.
  • Freedom of Choice: You can see any doctor, specialist, or hospital nationwide that accepts Medicare, without needing a referral.
  • Travel Coverage: Some plans offer coverage for emergency healthcare when you travel outside the U.S.

Why AARP/UnitedHealthcare Stands Out for Medigap

AARP/UnitedHealthcare is consistently recognized as a top provider for Medicare Supplement plans. Their association with Medigap plans makes them a primary choice for many seniors seeking comprehensive supplemental coverage. They are highlighted for offering robust Medigap options that cater to the diverse needs of retirees and seniors, helping them manage their healthcare costs effectively alongside Original Medicare.

Key Considerations When Choosing Medigap

Choosing the right Medigap plan involves understanding how these plans are structured and what factors might influence your decision:

  • Standardized Plans: Medigap policies are standardized across states (except Massachusetts, Minnesota, and Wisconsin). This means that Plan G from one insurer offers the exact same benefits as Plan G from another insurer, only the premiums might differ.
  • Popular Plan Options: For those new to Medicare post-2020, Medigap Plan G and Plan N are often popular choices as they offer extensive coverage. Plan G covers all gaps except the Part B deductible, while Plan N covers all gaps except the Part B deductible and some copayments for doctor visits and emergency room use.
  • Enrollment Period: The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period. This period starts the month you turn 65 and are enrolled in Medicare Part B. During this time, you have a guaranteed right to buy any Medigap policy offered in your state, regardless of your health status.
  • Premiums: Medigap premiums can vary significantly based on the insurance company, the plan type, your age, location, and the underwriting method used.

How Medigap Works with Original Medicare

Original Medicare consists of Part A (Hospital Insurance) and Part B (Medical Insurance). While these parts cover a wide range of services, they don't cover everything, leaving beneficiaries responsible for deductibles, coinsurance, and copayments. This is where Medigap steps in.

Here's a simplified look at what Medigap helps cover:

Original Medicare Component What Original Medicare Covers (Example) What Medigap Helps Cover
Medicare Part A (Hospital) Hospital stays, skilled nursing facility care Part A deductible, Part A coinsurance, extended hospital stays, blood
Medicare Part B (Medical) Doctor visits, outpatient services, preventive care Part B deductible, Part B coinsurance, excess charges (if applicable)

Important Tips for Seniors

  • Compare Plans Annually: Even if you're satisfied with your current plan, it's wise to review your options annually to ensure you're getting the best value and coverage for your changing health needs.
  • Review Health Needs: Your health requirements can change over time. Ensure your chosen Medigap plan still aligns with your current and anticipated healthcare needs.
  • Utilize Official Resources: For comprehensive and unbiased information about Medicare and Medigap plans, always refer to official government sources like Medicare.gov.