Worst Medicare Supplement Companies
Based on my personal experience as a Medicare broker, Bankers Life and United American Insurance Company are among the worst Medicare Supplement companies – due to aggressive sales tactics and high premiums.
I want to shine a light on several Medicare Supplement (Medigap) companies that lack dependability and trustworthiness. I’ve considered key factors like their monthly premiums, premium stability, and overall experience in the Medicare market.
With over 10,000 baby boomers entering the Medicare market daily, it’s no surprise that every insurance company in America wants a piece of the business. After experiencing the highs and lows over 20+ years in the Medicare field, my goal is to help you make a smart choice when picking a Medigap provider.
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Important tip:
Evaluating a Medicare Supplement company based on benefits alone is not enough. All companies provide the same benefits for each plan level, regulated by CMS and your state insurance department.
Example: Medico’s Medigap Plan G benefits are the same as State Farm’s Medigap Plan G benefits.
Medigap Premium Comparison
The biggest red flag with a Medicare Supplement provider is high premiums.
We put together a chart comparing the premiums of popular Medigap plans offered by different companies. We highlighted the most reliable providers and pointed out those who clearly charge too much.
| Medigap Company | Plan G | Plan N | Plan A |
|---|---|---|---|
| ACE Insurance Company | $113.83 | $85.42 | $112.75 |
| Allstate Health Solutions | $117.48 | $92.75 | $116.07 |
| Cigna | $130.62 | $91.34 | $138.98 |
| Aflac | $130.91 | $99.41 | $130.25 |
| Mutual of Omaha | $130.99 | $99.46 | $134.49 |
| Medico | $139.96 | $106.69 | $132.97 |
| Humana | $149.15 | $117.03 | $149.00 |
| State Farm | $141.35 | $104.04 | $151.81 |
| United American Insurance Company | $183.00 | $198.00 | $148.00 |
| Quotes are the average monthly rate for a 65 year-old male nonsmoker living in El Paso, TX (zip code 79936). | |||
Premium analysis:
Companies like United American Insurance Company, State Farm, and Humana charge up to 38% higher rates for Plan G, 57% more for Plan N, and 26% more for Plan A compared to other top Medicare Supplement providers.
Worst Medigap Companies
Based on our research and experience, we have concluded that the following are the worst Medicare Supplement providers.
#1: Bankers Life
Bankers Life has offered Medicare Supplement plans for many years. Their door-to-door sales approach often involves high-pressure agents pushing a single, expensive option.
We’ve received many calls from Bankers Life policyholders, reporting they paid nearly 50% higher premiums than if they had enrolled with a more reputable Medicare Supplement provider. Coupled with the subpar rating on the Better Business Bureau, it’s clear that customers are not happy.
Bankers Life doesn’t even offer the option to obtain an insurance quote online. To receive one, you must fill out a form on their website and wait to be contacted by an insurance agent.
#2: United American Insurance Company
Despite its longevity, United American Insurance Company stands out for all the wrong reasons. Many policyholders have experienced unexpected premium increases and are overpaying by nearly 40% compared to leading companies.
Beneficiaries have also expressed frustration over policies not covering certain conditions or scenarios as initially expected.
Some reviews mention the difficulty in reaching customer support for assistance, understanding policy benefits and restrictions, and navigating claim processes. According to the BBB website, they are ranked with just 2.3 stars.
#3: Medico
With Medico’s long history, it seems they haven’t kept up with competitive rates. We’ve had many calls from Medico policyholders who noticed they’re paying about 30% more compared to top companies.
The Better Business Bureau website has also received negative feedback from Medico policyholders due to inadequate transparency in coverage details, a high rate of claims denial, and – if they can get ahold of anyone – horrible customer service.
#4: State Farm
While State Farm is well known in the car insurance industry, its footprint in the Medicare Supplement market has been less than impressive.
State Farm’s Medigap rates are often higher compared to other companies. Reviews and feedback point out customer service and policy flexibility concerns, indicating that State Farm may not be the best choice for those seeking Medigap coverage.
State Farm should also step up its game and offer perks like premium discounts or fitness program incentives that leading Medigap providers are already offering.
#5: Humana
Humana may offer a few discounts, but Medigap beneficiaries often pay premiums about 20% higher than other top companies.
According to the National Association of Insurance Commissioners (NAIC), complaints about Humana’s Medicare Supplement insurance plans are 223% more frequent than the average for all Medigap plans. This includes plans from Humana and its subsidiaries.
It’s also worth mentioning that the MyHumana app, designed to help manage coverage, hasn’t received good feedback either. The iOS app scored 2.9 out of 5, with users mentioning issues like incorrect coverage tracking, slow loading, and functionality problems.
#6: Transamerica
Known for its long history in the life insurance industry, it tried its hand in the Medicare space, only to exit the market altogether.
Here is the notice we received back in 2020 regarding their departure:
“Transamerica Premier has made the decision to streamline their focus and product portfolio by closing new sales of their Medicare Supplement Insurance business.
Effective September 28, 2020, Transamerica Premier will stop all new sales for this line of business. This includes all new sales for Agent Sold Medicare Supplement Insurance Plans A, B, C, D, F, and N.
Existing policies will not be impacted and will continue to be supported.”
Best Medigap Companies
Let’s look at some alternatives to the worst Medigap companies – like the top providers we partner with and trust for their reliability.
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Aetna:
- Offers Medigap Plans A, B, C, D, F, G, and N
- Up to 7% household discount
- Policies are guaranteed renewable
- No network restrictions – see any doctor who accepts Medicare
- Dental and vision coverage options
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Cigna:
- Offers Medigap Plans A, F, G, and N
- Up to 25% premium discounts
- Healthy Rewards program
- Options to bundle dental, vision, or hearing coverage
- User-friendly online portal
- 24/7 customer helpline
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Aflac:
- Offers Medigap Plans A, F, G, and N
- 9.2% more affordable premiums on average
- Up to 7% household discounts
- Fast claims processing (typically one business day)
- Extra $2 discount per month for applicable monthly EBT payments
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Allstate:
- Offers all ten standardized Medigap plans
- 12% more affordable premiums on average
- Up to 25% stackable discounts
- 30-day “free look” trial period
- Access to the Active&Fit fitness program
- Dental policy options with a 10% bundling discount
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Mutual of Omaha:
- Offers Medigap Plans A, B, C, D, F, G, M and N
- Up to 12% household discount
- Nationwide provider network
- Access to the Mutually Well program
- Dental policy options with a 15% bundling discount
- 44% fewer complaints than average
Lower premiums matter, but we believe it’s important to work with providers who also offer solid financial stability, top-notch customer service, and a range of Medigap policy options to fit various healthcare needs.
Bottom Line
Certain Medigap companies may use pushy sales methods and offer superficial benefits to those looking to enroll in a Medigap plan. Remember to dig deeper to fully understand what each provider is truly offering.
Key things to think about are premiums, reliability, and longevity in the Medicare industry.
I recommend working with an experienced Medicare broker with at least five to ten years of expertise in the field. They can present you with a variety of options from different providers.
FAQs
- What are the best Medigap companies?
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