What Are the Best Medicare Supplement Plans in Texas?
What Are the Best Medicare Supplement Plans in Texas?
Find Cheap Medicare Plans in Your Area
In Texas, it costs an average of $147 per month for Medicare Supplement Plan G, which is the best coverage for new enrollees.
With Medicare Supplement, also called Medigap, your costs can vary by the plan's level of coverage, the insurance company and your age. Most Medigap enrollees in Texas choose Medigap Plan F or G, as these two options have the highest levels of coverage.
We recommend AARP/UnitedHealthcare (UHC) as the overall best Medigap provider in Texas because of its good customer satisfaction, moderate costs and included extras such as dental discounts. For those looking for cheap coverage, Medigap Plan N provides coverage that's nearly as good as Plan G, and Aetna's Plan N costs $88 per month in Texas, although there is a trade-off in customer satisfaction ratings.
- $126 per month
- 75% fewer complaints than average
- $88 per month
- 159% more complaints than average
What's the best Medicare Supplement company in Texas?
In Texas, AARP/UnitedHealthcare is the overall best Medicare Supplement provider.
AARP/UHC plans are more popular than plans from Blue Cross and Blue Shield (BCBS) of Texas. Even though its prices can be slightly higher, AARP/UHC policyholders are generally more satisfied with their coverage.
Insurer | Popularity | Plan G cost | Plan N cost | Customer satisfaction | Financial strength |
|---|---|---|---|---|---|
| AARP/UHC | 27% | $126 | $107 | 4.5 | A+ |
| BCBS of Texas | 19% | $121 | $99 | 3.0 | A |
| Mutual of Omaha | 15% | $133 | $100 | 5.0 | A+ |
| Aetna | 7% | $126 | $88 | 1.5 | A |
| Cigna | 3% | $148 | $101 | 4.0 | A |
| USAA | 3% | $123 | $113 | 5.0 | A++ |
| Humana | Less than 3% | $122 | $96 | 1.0 | A- |
| Amerigroup | Less than 3% | $119 | $102 | 5.0 | A |
Costs are average monthly rates for a 65-year-old female nonsmoker in Dallas. Popularity is the market share percentage in Texas by premiums. Customer satisfaction is based on the rate of complaints for each company's Medigap division.
AARP/UnitedHealthcare is not just the top provider in Texas, it's also one of the best Medicare Supplement providers nationally because its plans frequently provide a good value on coverage.
Remember that with Medigap, a plan's medical benefits are consistent, and each plan gives you the same level of coverage no matter what company you choose. Plus, with the majority of Medigap plans, you'll have coverage at any doctor or medical provider who accepts Medicare, which means 99% of medical providers nationwide.
With both medical coverage and access to doctors being consistent, it's easier to compare Medicare Supplement plans based on cost and customer satisfaction to decide which is the best provider for you.
Best overall
AARP/UnitedHealthcare Medigap plans strike the balance of being a good value while also having good customer satisfaction.
AARP's Medigap costs are about average in Texas:
- Plan F: $176 per month
- Plan G: $126 per month
- Plan N: $107 per month
However, policyholders get access to a wide collection of add-on perks such as a 30% to 40% discount on dental care through Dentegra, discounts on eye exams and lenses, as well as discounts on hearing care and hearing aids. This provides a good value for those who plan to use these services.
Plus, some of the AARP/UHC plans won't increase your costs because of your age, which is called "community pricing." This can give you more stable rates with costs only changing because of market factors.
AARP/UHC also offers a very good household/multiple policy discount. In Texas, you'll save an average of 12% if there are two or more members in your household with an AARP Medigap plan.
However, we only recommend AARP/UHC plans if you are enrolling when you have protected enrollment called guaranteed issue, such as during your initial enrollment period. If you go through the medical underwriting process and have a preexisting health condition, rates could be as high as $388 per month for Plan G.
Cheapest for Plans F and G
Amerigroup has the cheapest Medigap Plans F and G in Texas with monthly rates of $160 for Plan F and $119 for Plan G.
Even though Amerigroup plans are not popular in Texas, the company is a subsidiary of the major insurance company Anthem.
Keep in mind that customer satisfaction within Amerigroup's Medigap division is very good, even though Amerigroup's Medicare Advantage plans don't have high ratings. Medigap policyholders are very satisfied with their coverage.
Plus, Amerigroup's Medigap plans are rapidly growing in popularity, and the company went from $2.6 million in premiums in 2019 to $11.4 million in premiums in 2021.
As for discounts, you can save $48 per year by paying annually instead of monthly, $2 per month by paying with an automatic withdrawal and 5% per person if you qualify for a household discount.
With these cheap Medigap plans, you won't have as many extras as with AARP/UnitedHealthcare, but Amerigroup enrollees do get a SilverSneakers fitness membership.
Cheapest Plan N
In Texas, it costs $88 per month for Medigap Plan N from Aetna.
This is a good value that's lower than the typical cost in the state of about $100 per month.
Medigap Plan N is a great choice for budget-conscious shoppers, and the plan provides coverage that's nearly as good as Plan G's coverage, but you will have some extra out-of-pocket costs for medical care such as a $20 copay for office visits.
And while Aetna offers a good price on Plan N, there is a trade-off between cost and quality. Aetna has a high rate of complaints among Medigap policyholders. For those who prioritize customer service, it may be worth it to pay about $10 more per month and get Plan N from Blue Cross and Blue Shield of Texas or Mutual of Omaha.
Aetna also offers a 7% household discount if your spouse or someone with whom you have resided for at least 12 months also has an Aetna Medicare Supplement plan.
Best for discounts
Blue Cross and Blue Shield of Texas is a popular choice for Medigap plans, and it has a large array of discounts.
BCBS Medigap plans cost $121 per month for Plan G, $171 per month for Plan F and $99 per month for Plan N.
The most notable discount is with BCBS Medigap Select policies, where you can get 9% off if you're willing to forgo some provider flexibility. To qualify for one of these Select plans in Texas, you'll need to live within 30 miles of one of the company's in-network hospitals and only use one of these hospitals for nonemergency hospital care. Although you'll have coverage to see any doctor, you'll also need to check that the physician who admits you for hospital care has admitting privileges at the in-network hospital. The Select plans cover emergencies at any hospital.
On top of this discount, BCBS also offers either a 3% discount if other people in your household have a BCBS Medigap plan or a continuation discount if you had a BCBS health insurance plan within the past year.
Additionally, a BCBS Medigap plan provides discounts for vision care and lenses, hearing exams and hearing aids, as well as access to discounted gym memberships, fitness gear, nutrition resources and more through a program called Blue365.
Keep in mind that BCBS Medigap in Texas has a customer satisfaction rating that's about average, and it receives a typical number of complaints for a company of its size. If you prefer top-tier customer satisfaction, we recommend USAA or Mutual of Omaha.
How much does a Medigap plan cost in Texas?
Most people in Texas pay between $130 and $180 per month for a Medigap plan.
However, costs can vary widely based on a range of factors including the plan's level of coverage and the age of the enrollee.
For example, a 65-year-old in Texas will pay an average of $178 per month for Medigap Plan F, $147 per month for Medigap Plan G, $131 per month for Medigap Plan N and $53 per month for high-deductible Plan G.
Medigap plan | Monthly cost in Texas | Popularity in Texas (enrollment) |
|---|---|---|
| C | $189 | 1% |
| F | $178 | 46% |
| A | $178 | 1% |
| B | $167 | 0% |
| D | $156 | 1% |
| G | $147 | 41% |
| L | $139 | 0% |
| M | $132 | 0% |
| N | $131 | 7% |
| K | $75 | 1% |
| FH | $67 | - |
| GH | $53 | - |
Median monthly cost in Texas for someone aged 65 to 69. Enrollment does not total 100% because of discontinued, waivered and pre-standardized plans that are not shown here. Enrollment in high-deductible plans is grouped together with the standard plan letter.
Find Cheap Medicare Plans in Your Area
- Plan F: Providing the best coverage available, Medigap Plan F is also the most popular plan in Texas, as 46% of Medigap enrollees have chosen this plan. With an average cost of $178 per month, you'll eliminate most expenses for health services including the deductibles and copayments for medical care and hospitalization. However, Plan F is only available to those who were eligible for Medicare prior to 2020.
- Plan G: Plan G has the best coverage that's available to new Medicare enrollees. For an average cost of $147 per month, enrollees will have very few medical expenses. And in Texas, Plan G may be a better deal than Plan F, even though you'll have more medical expenses. For example, with Plan G, you'll have to pay the Medicare Part B deductible, which is $226 per year. But if Plan G costs at least $19 less per month than Plan F ($228 less per year), then Plan G will be a better deal than Plan F.
- Plan N: Plan N is a good choice for shoppers on a budget who want very good coverage but who are willing to pay for some medical care, such as the $226 Medicare Part B deductible and $20 copays for office visits. You'll be fully covered for major medical costs including hospitalization. Plan N costs an average of $131 per month in Texas, and it's a somewhat popular choice, with 7% of the state's enrollment.
- High-deductible Plan G: With an average cost of $53 per month, high-deductible Plan G is the cheapest Medigap plan in Texas. This plan provides catastrophic-style coverage because the typical Plan G benefits will only kick in after you've spent $2,700 on your medical care. Before the Medigap plan kicks in, you'll have the standard coverage through Original Medicare and will typically pay about 20% of your medical costs. However, if you have a serious illness, this cheap Medigap plan will protect you from a situation where your medical bills add up to tens of thousands of dollars.
List of Medigap companies in Texas
In Texas, there are 47 insurance companies selling Medigap plans.
- Accendo (CVS)
- Aetna (CVS)
- American Benefit Life Insurance Co.
- Amerigroup (Anthem)
- Atlantic Coast Life Insurance
- Bankers Fidelity Assurance Co.
- Blue Cross and Blue Shield of Texas
- Capitol Life Insurance
- Catholic Life Insurance
- Central States Health and Life Co. of Omaha (CSO)
- Cigna
- Colonial Penn
- Elips Life Insurance
- Federal Life Insurance
- GPM Health and Life Insurance
- Globe Life
- Great Southern Life Insurance
- Guarantee Trust Life Insurance
- Heartland National Life Insurance
- Humana
- Magna Insurance Co.
- Manhattan Life
- Medico Insurance Co.
- Mutual of Omaha
- Nassau Life Insurance Co.
- National Guardian Life Insurance Co.
- National Health Insurance Co.
- Old Surety Life Insurance Co.
- Oxford Life Insurance Co.
- Pan-American Life Insurance Co.
- Pekin Life Insurance
- Philadelphia American Life Insurance Co.
- Physicians Life Insurance Co.
- Puritan Life Insurance Co. of America
- Resource Life Insurance Co.
- SBLI USA Life Insurance Co.
- Sentinel Security Life Insurance Co.
- State Farm
- Transamerica
- USAA
- Union Security
- UnitedHealthcare
- United American
- United Commercial Travelers of America
- United Insurance Co. of America
- United States Fire Insurance Co.
- Wisconsin Physicians Service Insurance Corp.
Medicare resources in Texas
Choosing the best Medicare plan can be difficult, and there are resources within the state of Texas to help you make your decision or find out if you qualify for financial programs to help with Medicare costs.
- In Texas, the State Health Insurance Assistance Program (SHIP) is also called the Texas Health Information, Counseling and Advocacy Program. Its resources are freely available, and you can speak with someone by phone or in one of the Texas offices.
- The Texas Department of Insurance also provides a list of Medicare contacts to help you find the resources you need for your situation.
- And if you're applying for Medicare for the first time, you can use the U.S. Social Security Administration's website to apply online or find a Social Security office in Texas.
Frequently asked questions
Does Texas have free Medicare?
Medicare Part A, which covers hospitalization, is free for most people because of payroll taxes paid when working. You can also enroll in a free Medicare Advantage plan if one is offered in your area. But Medicare Part B benefits are usually not free, and most people pay $164.90 per month.
Who is eligible for Texas Medicare?
You can become eligible for Medicare at age 65. Those who are younger may also become eligible through a qualifying disability or medical condition such as end-stage renal disease (ESRD) or Lou Gehrig's disease.
How popular are Medigap plans in Texas?
In Texas, 45% of Medicare enrollees have chosen a bundled Medicare Advantage plan. The remaining 55% have Original Medicare benefits and may be supplementing that coverage through Medigap, Medicaid or an employer-sponsored Medicare supplemental plan. These trends are similar to national enrollment trends, as 58% of enrollees nationwide have Original Medicare.
What is the cost of Medicare Plan G in Texas?
In Texas, Medigap Plan G costs an average of $147 per month for a 65-year-old. However, costs will vary by company, and Plan G from AARP/UnitedHealthcare is usually a good deal, costing $126 per month.
What are the most popular Medigap companies in Texas?
In Texas, AARP/UnitedHealthcare is the most popular Medigap provider with 27% of enrollment, and it's also one of the best Medicare Supplement providers nationally. This is followed by Blue Cross and Blue Shield of Texas, which has 19% of enrollment, Mutual of Omaha with 15% and Aetna with 7%.
Does Texas have a Medicare Savings Program?
Yes. With the Texas Medicare Savings Program, you can qualify for financial help if you are an individual earning up to $18,588 per year ($1,549 per month) or a couple earning up to $24,960 per year ($2,080 per month). There are additional requirements regarding assets such as savings or stocks.
Sources and methodology
The costs for Medicare Supplement plans in Texas are based on 2022 rates provided by the Centers for Medicare & Medicaid Services (CMS) and Medicare.gov. We used standard costs where applicable without household discounts.
Enrollment data is based on AHIP's report on the state of Medicare Supplement coverage and the Medicare Supplement loss ratio report from the National Association of Insurance Commissioners (NAIC).
Additional information was sourced from AM Best for financial strength, the NAIC for the rate of complaints and Medicare.gov for general coverage details.
The customer satisfaction rating is a one-to-five score based on the NAIC complaint index of the company's Medigap division. The top score of 5.0 means the company has received less than a quarter of the complaints that a typical insurer of its size would receive.
Customer satisfaction score | Number of complaints a company receives as compared to a typical insurer of its size |
|---|---|
| 5.0 (top rating) | Over 75% fewer complaints than typical |
| 4.5 | 50% to 75% fewer complaints than typical |
| 4.0 | 25% to 50% fewer complaints than typical |
| 3.5 | 0% to 25% fewer complaints than typical |
| 3.0 | An average rate of complaints |
| 2.5 | 0% to 50% more complaints than typical |
| 2.0 | 50% to 100% more complaints than typical |
| 1.5 | 100% to 250% more complaints than typical |
| 1.0 | Over 250% more complaints than typical |
Our calculations for a company's rate of complaints used a weighted average based on Texas market share for Aetna (Continental Life Insurance Co. of Brentwood and Aetna Health Insurance Co.) and Mutual of Omaha (United World Life Insurance Co., United of Omaha, Omaha Insurance Co. and Omaha Supplemental Insurance Co.).
How does age affect Medigap prices in Texas?
In Texas, insurance companies are allowed to use an enrollee's age to determine their Medigap rates.
Someone aged 75 in Texas could pay an average of 40% more for Medigap compared to someone aged 65. However, prices typically level off after age 75.
Not all insurance companies use age to set Medigap prices in Texas, and to avoid age-based price increases, look for Medigap plans that have community-rated prices such as some of the AARP/UHC plans. You might pay a little more at age 65, but annual cost increases will be much slower.
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