Southern Senior Care Blog

AARP Medicare Supplement Plans are underwritten by United Healthcare. I’m not going to spend a lot of time comparing AARP Medicare Supplement Plans to those offered by numerous other companies. There have been many articles and documents created that discuss the subject of “Standardization” of Medicare Supplements. In short, in 1997 Medicare standardized all medicare supplements. There are thirteen plans identified by the letters A-L. Companies can offer any or all of these plans and can charge any premium they wish. Plans of the same letter are “Identical” from one company to another. I REPEAT Plans of the same letter are 100% identical. The only difference between them is the premium.

AARP Medicare Supplement Plan Costs

NOTE: This information is valid for Georgia and some other states. Unlike most Medicare Supplement companies, AARP uses “Community Pricing.” This means that everyone who has an AARP Medicare Supplement Plan “F” pays the same premium regardless of their age. You may talk to someone whose monthly premium is not exactly the same as yours. That is because AARP offers several optional discounts that can reduce ones monthly premium:

1. Spousal Discount - If both partners have an AARP Medicare Supplement, then both receive a 5% discount on their premiums.
2. Electronic Payment Discount - If you pay for your AARP Medicare Supplement by automatic electronic monthly bank draft you receive a $2.00/month discount.

Is the AARP Medicare Supplement the Best?

As mentioned in the paragraph above and many other reports, Medicare Supplement Plans are standardized, which mean the benefits offered are the same from company to company. You will find The Medicare Supplement Plan chart in the marketing material from every company. So, the question of which medicare supplement company is best, does not have an easy answer.

What is an AARP Medicare Supplement?

Medicare Supplement Insurance helps pays some of the medical expenses that Medicare does not cover. Some of these expenses are:

• Annual Part B deductible of $134
• Part A Hospital deductible of $1024 (this is paid for every overnight hospital visit)
• 20% of Part B expenses

So, when you need medical care, you show your Medicare Card. The doctor, hospital or healthcare provider sends the bill to Medicare. Medicare pays for their part of the expenses that are on the “Medicare Approved List,” and then they send the balance of the bill to your Medicare Supplement Insurance company - in this case AARP. AARP then pays their part of the expenses. Here is the “KEY” to how Medicare Supplement Companies work. Notice, I said they pay their part? I did not say they review the expenses, or they decide how much they are going to pay, or debate with the doctor about how much they are going to pay. The Medicare Supplement Company pays the balance of “whatever Medicare Approves.” If Medicare approves a charge and pays, then the Medicare Supplement Company MUST pay their part, no questions asked. That is why when you talk to someone who has had a Medicare Supplement Plan in place for several years, they always say things like “My Medicare Supplement company is GREAT, they always pay.” That is because they have to according to the rules of Medicare.

So, What is the Best Medicare Supplement Plan?

Now that we’ve discussed a little more about what Medicare Supplement Companies do and what a Medicare Supplement Insurance is, I’m going to refer you over to a blog entry devoted to that question. What is the Best Medicare Supplement Plan?