Is AARP Medicare a good plan? A Comprehensive Guide for Seniors

With over 65 million Americans enrolled in Medicare, selecting the right plan is a significant decision that requires careful research.

When evaluating your options, a common and important question arises: Is AARP Medicare a good plan? This comprehensive guide offers an authoritative look at what AARP offers through its partnership with UnitedHealthcare.

Quick Summary

Determining if an AARP Medicare plan is right for you depends on individual health needs, budget, and location, as it offers a variety of Medigap and Medicare Advantage plans through UnitedHealthcare to suit different preferences.

Key Points

• AARP is a Partner: AARP does not sell Medicare insurance directly but partners exclusively with UnitedHealthcare to offer its co-branded plans.

• Two Main Options: AARP offers two primary types of Medicare plans: Medigap (for covering costs with Original Medicare) and Medicare Advantage (an all-in-one alternative to Original Medicare).

• Medigap vs. Advantage: Medigap plans offer nationwide flexibility with higher premiums, while Medicare Advantage plans often have lower premiums but require using a specific provider network.

• Factors to Consider: Your choice should depend on your health needs, preferred doctors, budget, and desire for extra benefits like dental and vision.

• Research is Key: You must compare specific plan details, not just the brand name, to find the best fit for your unique situation.

• UnitedHealthcare is the Insurer: Remember that UnitedHealthcare determines the policy benefits, networks, and costs, so it's important to research their reputation and plan specifics.

Understanding the AARP and Medicare Partnership

Many seniors know of AARP through its advocacy work and member benefits, but its role in the Medicare landscape is often a point of confusion. AARP does not directly sell Medicare insurance. Instead, it has an exclusive partnership with UnitedHealthcare to offer AARP-branded Medicare plans. This means that when you purchase an AARP Medicare plan, you are buying a UnitedHealthcare policy that is co-branded with the AARP name. This distinction is important because the plan's benefits, network, and cost are determined by UnitedHealthcare, not AARP itself. This partnership offers a range of options, including both Medicare Supplement and Medicare Advantage plans, each with distinct features designed to meet different healthcare needs.

AARP Medicare Supplement (Medigap) Plans

For those who prefer the flexibility of Original Medicare, AARP offers several Medigap plans. These standardized plans help cover the 'gaps' in Original Medicare, such as copayments, coinsurance, and deductibles.

Key features of AARP Medigap plans include:

• Original Medicare Coverage: These plans work with your Original Medicare (Parts A & B) and generally allow you to see any doctor or visit any hospital in the U.S. that accepts Medicare, without network restrictions.
• Standardized Benefits: Medigap plans are standardized across insurance carriers, so an AARP Medigap Plan G offers the same benefits as a Plan G from another insurer. The primary differences lie in the cost, customer service, and added perks.
• Predictable Costs: By covering out-of-pocket expenses, Medigap plans can provide more predictable healthcare costs.
• Higher Premiums: While they reduce out-of-pocket costs at the point of care, these plans typically come with higher monthly premiums compared to Medicare Advantage plans.

Common AARP Medigap Plan Offerings:

• Plan G: One of the most popular plans for new enrollees, covering all Medigap-eligible expenses except the Part B deductible.
• Plan N: A lower-premium option that covers most costs but may require a small copay for doctor's office and emergency room visits.

AARP Medicare Advantage Plans (Part C)

For those who want an all-in-one alternative to Original Medicare, AARP offers several Medicare Advantage plans, also through UnitedHealthcare. These plans bundle Parts A, B, and usually D (prescription drugs) into a single plan.

Key features of AARP Medicare Advantage plans include:

• Network-Based Care: Most Advantage plans operate through a specific network of doctors, hospitals, and specialists, such as HMOs (Health Maintenance Organizations) or PPOs (Preferred Provider Organizations).
• Comprehensive Benefits: Plans often include extra benefits not covered by Original Medicare, such as routine dental, vision, and hearing coverage, as well as wellness programs.
• Lower Premiums: Many Advantage plans have low or even $0 monthly premiums, though you must still pay your Part B premium.
• Out-of-Pocket Limits: These plans have an annual out-of-pocket maximum, providing a financial safety net.

Comparison: Medigap vs. Medicare Advantage

Choosing between AARP's Medigap and Medicare Advantage offerings depends on your personal health and financial priorities. Here's a quick comparison to help clarify the differences:

Feature	AARP Medigap Plan	AARP Medicare Advantage Plan
Network	No network restrictions. See any provider accepting Medicare.	Typically requires using a network of doctors and hospitals (HMO, PPO).
Cost Structure	High monthly premium, low or no out-of-pocket costs at the point of care.	Low or $0 monthly premium, but involves copayments and coinsurance for services.
Referrals	No referrals needed to see specialists.	Often requires a referral to see a specialist (especially HMOs).
Extra Benefits	No extra benefits beyond what Original Medicare covers.	Often includes dental, vision, hearing, and wellness programs.
Prescription Drugs	Requires a separate Part D plan.	Typically includes Part D coverage built into the plan.
Travel Coverage	Can be very good, offering coverage across the U.S. and some foreign travel benefits.	Often limited to the plan's service area, with limited coverage outside it.

Factors to Consider When Choosing a Plan

1. Your Health Needs and Provider Network: Do you have specific doctors you want to keep? If so, check if they are in the network for any prospective Medicare Advantage plan. Medigap plans offer more flexibility in this regard.

2. Your Budget and Cost Predictability: Can you afford a higher monthly premium for a Medigap plan that offers more predictable out-of-pocket costs? Or do you prefer a lower monthly premium with an Advantage plan, accepting potential copayments throughout the year?

3. Prescription Drug Coverage: Do you take regular prescriptions? Most Advantage plans include Part D, while Medigap plans require you to purchase a separate plan. Compare the total cost of each option, including premiums, deductibles, and copays.

4. Extra Benefits: Are dental, vision, or gym memberships important to you? Medicare Advantage plans are typically the only ones that include these extras.

How to Compare AARP Medicare Plans Effectively

1. Evaluate Your Personal Needs: Create a list of your most important healthcare providers, prescriptions, and any specific benefits you want.
2. Compare Plan Types: Decide whether a Medigap or a Medicare Advantage plan better suits your financial and healthcare needs.
3. Review the Details: Don't just look at the premium. Read the plan's Evidence of Coverage carefully to understand all copayments, deductibles, and coverage limitations.
4. Consider Customer Service and Reputation: Since these are UnitedHealthcare plans, research their reputation for customer service and claims processing.
5. Use Official Resources: For an unbiased overview of all your options, visit the official government site. Learn more about Medicare plans here.

Conclusion: Making an Informed Decision

So, is AARP Medicare a good plan? The answer is not a simple yes or no. AARP's partnership with UnitedHealthcare provides a wide array of plan options, catering to different needs and budgets. The 'goodness' of the plan is entirely subjective and depends on your individual circumstances. For those seeking the freedom to choose any doctor and more predictable costs, a Medigap plan might be a better fit. For others who prefer lower premiums and extra benefits, a Medicare Advantage plan might be more appealing. By carefully evaluating your health, budget, and coverage priorities, you can make an informed decision that ensures your healthcare needs are well covered.

Frequently Asked Questions

What is the relationship between AARP and UnitedHealthcare?

AARP has an exclusive partnership with UnitedHealthcare to offer AARP-branded Medicare Supplement (Medigap) and Medicare Advantage plans. When you enroll in an AARP Medicare plan, you are signing up for a UnitedHealthcare policy.

Are AARP Medicare plans available in every state?

The availability of specific AARP Medicare plans can vary by state and even by county. You must use UnitedHealthcare's search tools or the Medicare.gov plan finder to see which AARP-branded plans are offered in your specific area.

What are the main differences between AARP Medigap and Medicare Advantage plans?

AARP Medigap plans work with Original Medicare to cover out-of-pocket costs and have higher premiums. Medicare Advantage plans are an alternative that often includes prescription drug coverage and extra benefits but use a specific provider network and often have lower or $0 premiums.

Can I have both an AARP Medigap and a Medicare Advantage plan?

No, you cannot be enrolled in both a Medicare Supplement (Medigap) plan and a Medicare Advantage plan at the same time. You must choose one or the other.

Do I have to be an AARP member to purchase an AARP Medicare plan?

You do not need to be an AARP member to get information about or enroll in an AARP Medicare plan. However, AARP members may qualify for a discount on premiums for some plans.

Do AARP Medicare plans cover prescription drugs?

AARP Medicare Advantage plans typically include Part D prescription drug coverage. AARP Medigap plans do not, so you would need to enroll in a separate Part D plan if you choose a Medigap policy.

How do AARP Medicare plan costs compare to other providers?

Costs for both AARP Medigap and Medicare Advantage plans are competitive but vary widely by location, plan type, and your specific needs. It is essential to compare AARP's offerings directly with those from other providers to find the best value for your situation.