|A.M. Best financial strength rating: A+||BBB rating: Not rated||Consumer Affairs rating: 4.1 stars|
Quick State Farm Medicare Supplement Plans review: State Farm Medicare Supplement Insurance (Medigap) plans are offered across the U.S. states and are underwritten by State Farm Mutual Automobile Insurance Company.
Founded in 1922, State Farm has been in the insurance business for almost 100 years. The company began selling automobile insurance and has a long track record of financial stability and growth into other service lines, including Medicare Supplement Insurance. Consumer reviews are generally positive and focus on good customer service.
State Farm Mutual Automobile Insurance Company offers Medigap plans A, B, D, F and C (only for Medicare beneficiaries eligible before January 1, 2020), G, and N. State Farm’s plans are based on attained aged pricing, which means premiums increase as you age. Most Medigap plans offered by other insurers have a similar pricing structure.
You can easily obtain an online quote or speak with an agent about which plan option is best for you.
Pros and Cons of State Farm Medicare Supplement Plans
|What we like about State Farm Medigap plans:||The drawbacks of State Farm Medigap plans:|
What Do State Farm Medicare Supplement Plans Cover?
Also known as Medigap, State Farm Medicare Supplement plans work with Original Medicare Parts A and B. They help reduce your out-of-pocket costs by lowering or eliminating copays, coinsurance payments, and deductibles. Coverage is valid at Medicare-participating doctors and hospitals across the United States even when traveling. Plans are guaranteed to be renewable as long as you continue to pay your premiums. Medicare Supplement policies are compatible with Part D plans that can lower your prescription drug costs.
Once you are a State Farm Medicare Supplement plan member, you may be eligible for additional services, benefits, or opportunities to add dental, vision, or hearing coverage. Additional premiums may apply. Talk with your State Farm agent to discuss your specific needs.
State Farm Medicare Supplement Plan Options
There are 10 universal Medigap policies known as plans A, B, C, D, F, G, K, L, M, and N, including standardized benefits and copay reductions. Plans C and F are only available to existing Medicare enrollees who became eligible for Medicare before 2020. New beneficiaries can sign up for a Medigap plan without restrictions during their seven-month initial enrollment period. Otherwise, insurers can base eligibility on your medical history.
Except for Plan F, you’re responsible for paying your $226 Part B deductible (in 2023) for medical services and diagnostics. Medigap policies can reduce or eliminate your Part A hospital deductible, which can save you up to $1,600 per benefit period in 2023. Some plans may pick up excess charges beyond Medicare-approved amounts, and they can limit your out-of-pocket expenses.
State Farm’s Medicare Supplement Plan options include six or seven standardized plans, depending on where you live. State Farm does not offer plans K, L, or M. Plan A is the most basic coverage and includes hospital copayment costs up to a year after Medicare benefits are used up, the first three pints of blood, hospice care, and Part B coinsurance after your annual deductible is met.
Plan G is the most comprehensive plan available to beneficiaries who are Medicare eligible after January 1, 2020. Unlike Plan F, it doesn’t cover the Part B annual deductible, but does cover excess charges and up to 80% of foreign travel emergency expenses.
Plan N is a lower-cost alternative to Plan G and includes copays for office and emergency room visits. It does not cover excess charges from providers who do not accept the approved Medicare amount for services rendered. Plan D offers the same coverage but does not require copays.
Monthly premiums vary by age, tobacco use, and gender of the applicant. Keep in mind that Medigap plans are per person, so if you’re married, both you and your spouse need to purchase one. All of State Farm’s Medigap plans have attained age pricing, which means your premiums will increase as you age.
Here are a few examples from State Farm’s Illinois offerings in 2023:
|Plan name||Monthly premium†||Part A hospital deductible||Part B medical deductible||Member responsibility for excess charges||Out-of-pocket maximum|
|Plan A||$120.90||$1,600||$226||All costs||N/A|
|Plan D||$129.74||$0||$226||All costs||N/A|
|Plan N||$98.58||$0||$226||Up to $20 for office visits or up to $50 for ER care, plus all costs||N/A|
*Based on pricing in Bloomington, IL for a 65-year-old female, no tobacco use
†Rates are based on medical eligibility, age, gender, and tobacco use
State Farm Medicare Supplement Plans Reviews and Ratings
Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how A.M. Best, the Better Business Bureau, and Consumer Affairs rate State Farm’s Medicare Supplement plans and parent companies.
|A.M. Best financial strength rating: A+||A.M. Best sets credit ratings for insurers. State Farm’s A+ rating in this category indicates a superior ability to meet financial obligations.|
|BBB rating: Not rated||As a parent company of State Farm’s Medigap plans, State Farm Insurance Company is not accredited or rated through the Better Business Bureau. There have been 1,344 complaints closed in the past three years. No BBB rating is given because the company is in the process of responding to previously closed complaints.|
|Consumer Affairs rating: 4.1 stars||Consumer Affairs gave State Farm Medicare Supplement Insurance a rating of 4.1 stars based on nine customer reviews. Positive reviews for good customer service and a variety of plan options, including basic, value, and comprehensive. Online services are easy to use.|
Learn More From Our Sources
- AMBest | FSR for State Farm Mutual Automobile Insurance Co. and Affiliates | Last accessed December 2021
- Better Business Bureau | State Farm Insurance Company | Last accessed December 2021
- Consumer Affairs | State Farm Medicare Supplemental Insurance | Last accessed December 2021
- Medicare | What’s Medicare Supplement Insurance (Medigap)? | Last accessed December 2021
- Medicare | Find a 2022 Medigap Policy | Last accessed December 2021
- State Farm | Medicare Supplement Insurance | Last accessed December 2021