Mutual of Omaha Medicare Supplement Insurance 2022 Review

Mutual of Omaha’s customers have few complaints about its Medigap plans, which are available in every state but Massachusetts.
Feb 28, 2022

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Mutual of Omaha is an insurance and financial services company. It offers Medicare Supplement Insurance, or Medigap, in 49 states and Washington, D.C.

Unlike many Medigap insurers, Mutual of Omaha doesn’t sell Medicare Advantage or other health insurance plans. The company specializes in insurance meant to complement your main health insurance, such as Medicare Supplement Insurance, life insurance and long-term care insurance.

Mutual of Omaha stands out for its low rate of member complaints — more than 60% below the market average.

Here’s what you should know about Mutual of Omaha Medicare Supplement Insurance.

Mutual of Omaha Medicare Supplement Insurance pros and cons

Mutual of Omaha’s Medigap offerings have advantages and disadvantages.

Pros

Cons

  • Members have few complaints: Members file complaints at rates more than 60% below the average for all Medigap insurers on the market.

  • Available almost everywhere: Mutual of Omaha sells Medicare Supplement Insurance in every state but Massachusetts.

  • Large household discount: A discount of up to 12% for living with another adult is larger than many other providers offer.

  • Plan types: For new Medicare beneficiaries, only Medigap plans A, G and N are available in most states.

  • Premium dollars spent on overhead: Mutual of Omaha spends less on member benefits and more on overhead than the average Medigap insurer.

  • Website is hard to navigate: Mutual of Omaha’s website doesn’t make it as easy to find information as do some competitors' sites.

Available Medicare Supplement Insurance plans

Here are the Medicare Supplement Insurance plans Mutual of Omaha offers for any Medicare member everywhere the company operates:

  • Medigap Plan A — the basic benefits included in every Medigap plan without any extras.

  • Medigap Plan N — a plan with lower premiums but higher copays.

  • Medigap Plan G — the highest-coverage option available to new Medicare members. Available as either a standard plan or a high-deductible option.

Mutual of Omaha also offers Medigap Plan F and the high-deductible version of Plan F for beneficiaries who were eligible to enroll in Medicare prior to 2020. Newer Medicare members can’t buy these plans from any insurer.

Plans A, G, N and F are the “primary plans available across all states,” according to a representative from Mutual of Omaha, but the company also offers other plan types in some states. Enter your ZIP code on the Mutual of Omaha website to see which plans are available in your area.

In addition, Mutual of Omaha offers plans in Minnesota and Wisconsin according to each state's Medigap plan standards, which differ from the standardization system used in the majority of the country.

Additional benefits

The Medicare benefits of each Medigap plan are standardized, but companies can include other perks with the standardized coverage. Here are some of the extras available with some Mutual of Omaha policies:

  • Wellness discount program: Mutual of Omaha’s Mutually Well program offers some members low-cost gym memberships, discounts on wellness products and services, and an app to plan and track fitness activities.

  • Hearing aids and eyewear: Some policies offer discounts on hearing aids, vision exams and eyewear from certain providers.

Mutual of Omaha Medicare Supplement Insurance service area

Mutual of Omaha offers Medicare Supplement Insurance plans in Washington, D.C., and every state except Massachusetts.

Mutual of Omaha covers about 1.3 million Medigap beneficiaries, and its share of the total Medicare Supplement Insurance market is about 9.3% [1].

Cost

The following price quotes were obtained for three states representing above-average, average and below-average costs for Medicare Supplement Insurance, when compared across all plans and providers using pricing data from Medicare.gov [2]:

  • Colorado: More expensive than average.

  • North Carolina: Average cost for the U.S.

  • Ohio: Less expensive than average.

The sections below show pricing information from Mutual of Omaha for a 65-year-old female nonsmoker and reflect “base” pricing with discounts removed or factored out whenever the option was available. (Note: Some Medigap prices may be higher for males.)

For comparison, each table also includes the price for the least-expensive option to buy the same plan from other providers, based on information from Medicare.gov. For example, Mutual of Omaha’s price for Medigap Plan A in Fort Collins, Colorado, appears alongside the lowest price on Medicare.gov for all Plan A policies available in Fort Collins to an applicant with identical demographics.

Plan A

On average, Mutual of Omaha’s quoted prices for Medigap Plan A were about 46% higher than the least-expensive Plan A policy in the area.

Mutual of Omaha-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$126.75.

$70.

Greensboro, North Carolina

$103.50.

$81.

Sandusky, Ohio

$89.68.

$69.

Plan G

Standard Plan G

On average, Mutual of Omaha’s quoted prices for Medigap Plan G were about 28% higher than the least-expensive Plan G policy in the area.

Mutual of Omaha-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$144.91.

$97.

Greensboro, North Carolina

$106.70.

$87.

Sandusky, Ohio

$104.07.

$92.

High-deductible Plan G

Mutual of Omaha’s quoted prices for the high-deductible version of Plan G were about 27% higher than the least-expensive high-deductible Plan G policy in the area.

Mutual of Omaha-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$43.

$32.

Greensboro, North Carolina

$34.76.

$30.

Sandusky, Ohio

$40.58.

$31.

Nerdy tip: A high-deductible Medigap plan can save you money overall if the premiums plus the money you spend meeting the deductible are less expensive than the higher premiums of a standard insurance policy. For 2022, benefits for high-deductible Plan G kick in after a $2,490 deductible. Divided over 12 months, that’s $207.50 per month. A high-deductible plan would need to have premiums at least $207.50 less than the standard version to start offering savings.

Plan N

On average, Mutual of Omaha’s quoted prices for Medigap Plan N were about 26% higher than the least-expensive Plan N policy in the area.

Mutual of Omaha-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$103.69.

$70.

Greensboro, North Carolina

$80.44.

$68.

Sandusky, Ohio

$81.08.

$73.

Discounts

Here are some discounts Mutual of Omaha offers to qualifying Medicare Supplement Insurance applicants:

  • Household: Some applicants can receive up to a 12% discount if they live with a spouse, domestic partner or other adults. In some states, this discount requires that the other household member already has or is applying for a Mutual of Omaha Medigap policy.

  • Dental policy: Some members that purchase Mutual of Omaha dental insurance within 30 days of starting a Medicare Supplement Insurance policy can qualify for up to a 15% discount on premiums for the dental plan.

Available discounts can vary according to factors such as your location, household status and how you apply for a policy.

Mutual of Omaha’s spending on care

71.4% for member benefits

Medicare Supplement Insurance providers are required to report data on the premiums they collect and how much they spend to provide benefits for members.

Based on the most recent year of data, Mutual of Omaha Medicare Supplement Insurance plans spend about 71.4% of premiums on member benefits [3]. (The other 28.6% goes to overhead expenses like administrative costs, marketing, salaries and commissions.)

For comparison, the average for all providers is 72.3%. The minimum required by law for individual Medigap policies is 60% [4].

Member complaints

62% below average

Members file fewer complaints about Mutual of Omaha’s Medicare Supplement Insurance plans than other insurers. Mutual of Omaha and its subsidiaries that sell Medigap plans had a complaint rate about 62% below the average for all Medigap plans, according to three years’ worth of data from the National Association of Insurance Commissioners [5].

The low Medigap complaint rate for Mutual of Omaha and its subsidiaries is on par with their overall performance. Across all insurance types offered by those companies, the average complaint rate was about 63% below the average for all insurers over the same three years of data.

Customer service

Here’s how Mutual of Omaha members can contact customer service:

  • Call customer service at 800-775-1000, Monday to Thursday, from 7 a.m. to 5:30 p.m. or Friday from 7 a.m. to 5 p.m. Central time.

  • Email Mutual of Omaha for non-urgent matters through an email contact form or at [email protected].

  • Contact Mutual of Omaha through Facebook.

  • Contact Mutual of Omaha through Twitter.

Third-party ratings

There are a few companies that weigh in on customers’ experiences with insurers or the strength of the company in question, and we’ve included two here:

AM Best Financial Strength Rating: A+

AM Best is a credit rating agency that specializes in the insurance industry. In February 2022, AM Best affirmed its Financial Strength Rating, or FSR, of A+ (Superior) for Mutual of Omaha Insurance Corporation and its subsidiaries: United of Omaha Life Insurance Company, Companion Life Insurance Company and United World Life Insurance Company [6].

An A+ rating in this category indicates that AM Best believes Mutual of Omaha has a superior ability to meet its ongoing insurance obligations.

Moody’s Investors Service: A1

Moody’s Investors Service is a credit rating agency that evaluates the financial strength and creditworthiness of public and private organizations of all types. In October 2020, Moody’s affirmed its A1 rating and stable outlook for Mutual of Omaha and its subsidiary, United of Omaha Life Insurance [7].

An A1 rating indicates that Moody’s considers Mutual of Omaha’s obligations to be a low credit risk and that Mutual of Omaha is on the higher end of this rating category. A stable outlook indicates that Moody’s expects a low likelihood of the A1 rating changing over the medium term.

Compare alternatives

Here's how Medicare Supplement Insurance providers compare with Mutual of Omaha.

Compare Medicare Supplement Insurance providers

Complaint rate: 67% worse than the market average.

Service area: 43 states.

Percent of premiums spent on benefits: 75.6%.

Complaint rate: 63% better than the market average.

Service area: 50 states and Washington, D.C.

Percent of premiums spent on benefits: 71.7%.

Complaint rate: 24% worse than the market average.

Service area: 16 states.

Percent of premiums spent on benefits: 68.6%.

Complaint rate: 0.4% better than the market average.

Service area: 50 states and Washington, D.C.

Percent of premiums spent on benefits: 72.6%.

Complaint rate: 40% worse than the market average.

Service area: 48 states and Washington, D.C.

Percent of premiums spent on benefits: 75%.

Complaint rate: 335% worse than the market average.

Service area: 49 states, Washington, D.C., and Puerto Rico.

Percent of premiums spent on benefits: 77%.

Complaint rate: 62% better than the market average.

Service area: 49 states and Washington, D.C.

Percent of premiums spent on benefits: 71.4%.

Complaint rate: 50% better than the market average.

Service area: 45 states and Washington, D.C.

Percent of premiums spent on benefits: 71.7%.

About Mutual of Omaha

Mutual of Omaha, headquartered in Omaha, Nebraska, was founded in 1909 as the Mutual Benefit Health & Accident Association. The company changed its name to Mutual of Omaha in 1950. Mutual of Omaha sells Medicare Supplement Insurance and Medicare Part D plans, dental insurance, life insurance and other insurance products such as long-term care and disability insurance. It also offers other financial services such as annuities, mortgages and investment services. In 2020, Mutual of Omaha had $11 billion in revenue.

Find the right Medicare Supplement Insurance plan

Because Medigap plans are standardized, you can get precisely the same Medicare benefits from any insurer offering the plan. So when you shop, keep these considerations in mind to find the best policy to fit your needs:

  • Is your preferred plan available? Insurers don’t always sell every plan, so check who sells the plan you want to buy in your area.

  • What are the premiums? Prices for the same plan can vary quite a bit between insurers, so check to find the most competitive rates.

  • Will your premiums change over time? Will the insurer charge more as you age, or can you lock in a price when you sign up?

  • Are there extras? Medigap plans’ core benefits are standardized, but some insurers include extras like discount programs or gym memberships.

If you have additional questions about Medicare, visit Medicare.gov or call 800-MEDICARE (800-633-4227, TTY 877-486-2048).

ARTICLE SOURCES

Works cited
  1. National Association of Insurance Commissioners, “2020 Medicare Supplement Insurance Experience Reports,” accessed Feb. 15, 2022.

  2. Centers for Medicare & Medicaid Services, “2020 Medigap Data,” accessed Feb. 15, 2022.

  3. National Association of Insurance Commissioners, “2020 Medicare Supplement Insurance Experience Reports,” accessed Feb. 15, 2022.

  4. Code of Federal Regulations, Title 42, Part 403, Section 215, accessed Feb. 15, 2022.

  5. National Association of Insurance Commissioners, “Company Complaint Index,” accessed Feb. 15, 2022.

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