UnitedHealthcare / AARP Medicare Supplement Review
Many folks are not aware that AARP is not an insurance company and is, in fact, a membership/marketing organization. The plans that AARP markets are insured by UnitedHealthcare. AARP simply markets the plans to seniors and charges them an annual fee to be a member of their organization so they can get some additional benefits. I will be reviewing Medicare supplement plans insured by UHC and marketing by AARP in detail.
Why Are AARP/UHC Medicare Plans So Popular?
As many of you know AARP is very popular. Too often, I hear people who believe AARP is an insurance company and they offer the “best” plans. This is not completely true. AARP is simply a membership organization that also happens to be an excellent marketing company. Every person turning 65 is bombarded with direct mail and other forms of advertisements from them. They also have a huge marketing budget so often folks see them on T.V. and they come to mind first when thinking about Medicare plans.
The fee to join AARP is $16 per year. In order to get a Medicare plan with UHC you have to join AARP and pay the fee. What do you get in return? The most notable benefit with AARP/UHC is “Silver Sneakers.” With Silver Sneakers you are able to join select gyms at no cost. To get a free rate comparison call me at (800) 208-4974.
UHC Medicare Supplement Plans and Rates
UHC/AARP currently (March 2017) offers plans F, G and N (also other not so popular plans such as A and K). They have announced they will start offering Plan G only July 1st, 2017 in several states (see below). Thier rates vary by state and can range from competitive in price to not competitive at all or just plain overpriced. It is important to understand what other carriers are charging before you enroll in a plan. We work with UHC and many other carriers. Call us at (800) 208-4974 for a free quote comparison today!
But Aren’t UHC Plans “Community-Rated”?
In most states, UHC Medicare Supplement plans are community-rated. In states like Florida, they are “issue age.” In situations where they are community rated, it is important to understand what “community rated” means. Community-rated is when the rate is the same for everyone in a specific area, regardless of age. The rates will only increase when the carrier increases everyone’s rates at the same time. The downside with a community rated plan from UHC is that you will have an “early enrollment” discount that will dimish each year, causing the rate to increase every year. In addition, you may have an “inflation” increase or adjustment each year.
The rate may not increase due to age on a community-rated plan but the rate will probably increase similar to an age-attained policy or issue-age due to the diminishing “early enrollment discount.”
UHC/AARP Medicare Supplement Plan G
Yes, UHC has announced they will start offering a Plan G in several states starting on July 1st, 2017. To find out if they have a Plan G in your state call us at (800) 208-4974 today! In many states the popular “Silver Sneakers” benefit will come with the Plan G. This plan is identical to Plan F, except the only benefit that is not covered the the Part B deductible of $183 in 2017.
Other than the Part B deductible, Plans F and G are the same. Plan G, however, is much cheaper per month than Plan F. The premium difference between F and G almost always covers the Part B deductible plus some. In addition, Plan G offers more rate stability. To read more about Plan G, see our explanation here. To get a free quote call us directly at (800) 208-4974.
How Much Does Plan G Cost With AARP/UHC?
The Plan G appears it will be competitive in many states. At the time of writing this, we have reviewed rates for CA and NJ. Here are some sample rates for a 65-year-old non-smoker:
Plan F: $152 per month
Plan G: $130 per month
Plan F: $160 per month
Plan G: $138 per month
To get up-to-date competitive rates for your area give us a call at: (800) 208-4974
Our Professional Opinion
A Medigap plan with UHC can be the right option for you. If they are competitive in your area then it would make sense to buy a Medigap plan insured by them. It is important to compare all of your options as there may be better choices. If you are considering a Medigap plan with UnitedHealthcare then allow us to provide you with a free quote comparison. Call us today, we are happy to help. (800) 208-4974