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best medicare supplement plan in texas

Best Medicare Supplement Plans in Texas 2022

What Are Medicare Supplement Plans in Texas?

Enrolled in Original Medicare in Texas? A Medicare Supplement plan, Medigap, works with Original Medicare. 

Original Medicare Part A and B don’t have a maximum cap on out-of-pocket expenses. As a result, these costs could add up to a shocking amount unless you have a Medicare Supplement plan in Texas. A Supplement plan pays for some or all out-of-pocket costs you incur while enrolled in Original Medicare.

38% of Medicare beneficiaries enrolled in fee-for-service coverage had a Medicare Supplement plan in 2020. That’s up from 36% in 2019, according to The State of Medicare Supplement Coverage by AHIP.

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Supplement Plans Are Standardized

There are ten types of Medicare Supplement plans available in Texas, which are standardized. This means that all the plans are the same, but each insurance company sets the cost. Each plan is labeled by the letters A – G and K – N. Every insurance company must offer at least Medicare Supplement plan A but can provide other options. 

5 Most Popular Medicare Supplement Insurance Plan Types in Texas

The five most popular Medicare Supplement plan types in 2020 were Plan F (46%), Plan G (41%), Plan N (7%), Plan J (2%), and Plan C (1%). However, only two of these plan types are taking new enrollments; Plan G and N. Therefore, Plan G is the most popular option for new enrollees, followed by Plan N. 

  • 46% have Plan F, which offers the most comprehensive Medicare coverage.
  • 41% have Plan G, the most comprehensive coverage plan available to new Medicare enrollees.
  • 7% have Plan N, which has a lower premium than Plan G but higher copays.

Plans that include the Part B deductible were phased out as of January 1, 2022. That included plans F, J, and C. This means that if you became eligible for Medicare on or after January 1, 2020, you will not be able to enroll in these plans. However, plans F, J, and C are still available to anyone enrolled in the plan previously if they were eligible for Medicare before January 1, 2020. 

Medigap Plan G Has the Best Coverage in Texas

Medicare Supplement Plan G most closely resembles Plan F. The only difference is that Plan G doesn’t cover the Part B deductible, and Plan F does. Overall, Plan G is the best value for a Medicare Supplement plan in Texas. It offers the highest level of coverage for new Medicare enrollees.

Medicare Supplement Plan G covered services:

  • Medicare Part A deductible.
  • Medicare Part A coinsurance and hospital expenses up to 365 days.
  • Medicare Part A hospice care copayment and coinsurance.
  • Coinsurance for a skilled nursing facility.
  • Medicare Part B coinsurance and copayments.
  • Medicare Part B excess charge.
  • 80% of foreign travel exchange.
  • Three pints of blood.

Medigap Plan G offers a standard and a High-Deductible plan depending on your health insurance and budget needs. 

Depending on your sex, age, and tobacco use, a standard Plan G premium could cost between $99 – $579 or more per month versus a Plan G High-Deductible plan’s premium costing $29 – 89, or more, per month. With a high-deductible plan, you must first pay for plan copayments, coinsurance, and deductibles before the policy pays anything. 

Below is an example of the monthly premium cost for someone living in the 75001 zip code. Remember, Medicare is local to the county level. Your results may differ based on your zip code/county, your age, sex, and whether you smoke. 

The Difference Between the Standard and High-Deductible Plan G Monthly Premium

65-year-old woman, non-smoker 65-year-old woman, smoker 65-year-old man, non-smoker 65-year-old man, smoker
Standard Plan G $99-$446 $112-$513 $109-$503 $123-$579
High-Deductible Plan G $29-$72 $32-$79 $32-$81 $35-$89

Medicare Supplement Plan N Offers Lower Monthly Premiums

Medicare Supplement Plan G and N are nearly identical, except that Plan N doesn’t cover Medicare Plan B excess charges. Plan N has $20 copayments for each physician visit and a $50 copay for each emergency room (ER) visit that does not result in hospitalization. 

Medicare Supplement Plan N covers:

  • Medicare Part A deductible.
  • Medicare Part A coinsurance and hospital expenses up to an additional 365 days.
  • Medicare Part A hospice care copayment and coinsurance.
  • Coinsurance for a skilled nursing facility.
  • Medicare Part B copayments and coinsurance.
  • 80% of foreign travel exchange.
  • Three pints of blood.

Plan N doesn’t offer a high-deductible plan option. The standard Plan N premium, depending on sex, age, and tobacco use, is between $77 – $542, or more, a month in 2022. Plan N’s monthly premium can be lower than Medicare Supplement Plan G’s standard premium (not high-deductible), but it will have higher copays.

Below is an example of the monthly premium cost for someone living in the 75001 zip code. Remember, Medicare is local to the county level. Your results may differ based on your zip code/county, sex, age, and tobacco use. 

The Plan N Monthly Premium Depending on Age, Sex, and Tobacco Use

65-year-old woman, non-smoker 65-year-old woman, smoker 65-year-old man, non-smoker 65-year-old man, smoker
Plan N $77-$417 $85-$480 $87-$471 $96-$542

Top 5 Medicare Supplement Insurance Companies in Texas

Medicare Supplement plans (Medigap) are regulated by the government and sold by private insurance companies. In 2020, these were the top five most popular Medicare Supplement insurance companies in Texas.

Insurance company Percent of Texas Members
AARP/UnitedHealthcare  27%
Blue Cross Blue Shield of Texas 19%
Mutual of Omaha 15%
Aetna 7%
Cigna 3%

Source: 2020 Medicare Supplement Loss Ratios, National Association of Insurance Commissioners.

Medigap Premium Prices Vary Between Insurance Companies

All Medicare Supplement (Medigap) policies are standardized; the same. When you choose amongst the companies that offer the plan, you are making a choice regarding service and additional Medicare benefits. 

Below, you can find the standard Plan G monthly premium, the Plan G High-Deductible premium, and the Plan N premium for a 65-year-old, non-smoking woman in the 75001 zip code. Plan costs are based on the insurance carrier, age, sex, and tobacco use. Men tend to have higher monthly premiums than women. 

Review below to compare monthly premiums amongst the three most popular Medigap plans in Texas. 

Insurance company Standard Plan G High-Deductible Plan G Plan N
AARP/UnitedHealthcare  $110  Not available $84 
Blue Cross Blue Shield of Texas $121 $51 $99 
Mutual of Omaha $116  $42  $91
Aetna $126 Not available $88
Cigna $134 $48 $93

What is the Best Medicare Supplement Plan in Texas?

According to Medicare beneficiary enrollment in Texas, the best Medicare Supplement plans in Texas are either standard Plan G, High-Deductible Plan G, or Plan N offered by one of the following three insurance companies:

  • AARP/UnitedHealthcare: standard Plan G or Plan N
  • Blue Cross Blue Shield of Texas: standard or high-deductible Plan G or Plan N
  • Mutual of Omaha: standard or high-deductible Plan G or Plan N
Agent tip:

“Just because these plans and insurance companies are the most popular doesn’t mean they are right for you. To choose a Medicare Supplement plan tailored to your needs, you should consider the costs and coverage.“

How Do You Choose a Medicare Supplement Plan?

When you sign up for Medicare, you’re making a decision regarding coverage and cost. 

Either Original Medicare with a Part D prescription drug plan and with or without a Medicare Supplement plan. Or a Medicare Advantage Plan with Prescription Drug coverage. These two methods are the most common way to get coverage suited to your health and budget needs. 

Just because the plans and insurance companies mentioned above are the most popular doesn’t mean they are right for you. To choose a Medicare Supplement plan tailored to your needs, you should consider the costs and coverage. Choose a plan that includes the doctors and medications you want and need at a price you can afford. 

Need help deciding which Medicare Supplement Plan is right for your health and budget? Speak with a local licensed agent who can guide you through your options. Call (623) 222-8884 or review your Medicare plan options online

What Are Alternatives to Medicare Supplement?

The alternative to a Medicare Supplement plan is a Medicare Advantage plan. Frequently, a Medicare Advantage plan could be a more budget-friendly alternative to a Medicare Supplement plan. This is because most Medicare Advantage plans also include prescription drug coverage. 

Instead of having Original Medicare, plus prescription drug coverage and a Medicare Supplement plan, you can have complete coverage with extra benefits with a Medicare Advantage Prescription Drug Plan. And with only one Medicare card. 

Your Medicare Coverage Options

Most Medicare Advantage plans also offer dental, vision, and hearing benefits. These are benefits that Original Medicare and Medicare Supplement plans don’t cover.

When to Apply for Medigap Coverage

The best time to enroll in a Medigap plan is during your Medigap Open Enrollment Period. During this time, insurance companies must sell you any plan they offer regardless of your pre-existing medical conditions. The Medigap Open Enrollment Period is also when you receive the best pricing. 

Your Medigap Open Enrollment Period only happens once and cannot be changed or repeated. And its timing is also unique to you. This enrollment period begins the first month you are enrolled in Medicare Part B, and you’re 65 or older. The enrollment period lasts six months.

Medicare Medigap Open Enrollment Period

If you miss your Medigap Open Enrollment Period, you may not be eligible to enroll in the future. This is because insurance companies are not required to offer you a plan which could require underwriting unless you have a guaranteed issue right. 

Need help understanding when your Medigap Open Enrollment Period is? Speak with a local licensed agent who can help. Call (623) 222-8884.

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Read more by Jasmine Alberto

I am a Spanish-speaking Texas Life and Health Insurance Licensed Agent and have been helping people with Medicare since 2007. I am on the the Advisory Committee for Foster Grandparents, Senior Companions, and RSVP Houston. I enjoy traveling, a backyard BBQ, and volunteering in my community.

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