State Farm Medicare Supplement Insurance 2022 Review

State Farm doesn’t have the lowest Medigap prices, but its members almost never complain about their policies.
Aug 23, 2022

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

State Farm is probably best known for auto insurance, but the company also offers medical insurance products including Medicare Supplement Insurance, or Medigap.

State Farm sells Medigap policies in most states and members have few complaints about them. However, the prices could be lower, and competitors offer more opportunities for discounts or added perks with your policy.

Here’s what you need to know about State Farm Medicare Supplement Insurance.

State Farm Medicare Supplement Insurance pros and cons

State Farm’s Medigap offerings have advantages and disadvantages.

Pros

Cons

  • Minimal complaints: State Farm members file complaints at rates nearly 90% below the average for all Medigap insurance companies on the market.

  • Combines with other insurance: If you already have State Farm for auto, home or another insurance product, it could be easy to work with your agent to add on a Medigap policy.

  • Pricing: You can find lower prices on plans from State Farm’s competitors, even before discounts.

  • Not many perks or discounts: State Farm doesn’t keep up with competitors that offer various discounts on premiums and added perks like fitness benefits.

Available Medicare Supplement Insurance plans

State Farm offers four Medicare Supplement Insurance plans available for purchase by any Medicare beneficiary in most states:

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

  • Medigap Plan D — a middle cost option that covers most Medigap benefits.

  • Medigap Plan G — the highest-coverage option available to new Medicare members.

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

State Farm also offers Medigap Plan C and Medigap Plan F for qualifying beneficiaries who were eligible to enroll in Medicare prior to 2020. Newer Medicare members can’t buy these plans from any insurer.

In addition, State Farm offers Medicare Supplement Insurance in Minnesota and Wisconsin that fits each state’s respective standards, which differ from the standardization system used in the majority of the country.

Select your state on State Farm’s website to see the Medigap plan types available in your location.

Additional benefits

Medigap plans have standardized Medicare benefits, but insurance companies can offer additional perks. While some competitors offer extra benefits like gym memberships or discounts on hearing aids and eyewear, State Farm doesn’t publicize similar extras for its Medicare Supplement Insurance policies.

State Farm Medicare Supplement Insurance service area

State Farm offers Medicare Supplement Insurance in 45 states and Washington, D.C. (State Farm doesn’t offer Medigap policies in Connecticut, Massachusetts, New Jersey, New York or Rhode Island.)

As of the end of 2020, State Farm covered about 106,000 Medigap beneficiaries and had about a 0.9% share of the total Medicare Supplement Insurance market

National Association of Insurance Commissioners. 2020 Medicare Supplement Insurance Experience Reports (Market Share Percentage). Accessed Aug 5, 2022.
.

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

Centers for Medicare & Medicaid Services. 2020 Medigap Data. Accessed Aug 5, 2022.
:

  • 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 State Farm 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, State Farm’s price for Medigap Plan A in Sandusky, Ohio, appears alongside the lowest price on Medicare.gov for all Plan A policies available in Sandusky to an applicant with identical demographics.

Plan A

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

State Farm-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$120.90.

$82.

Greensboro, North Carolina

$115.85.

$85.

Sandusky, Ohio

$123.25.

$80.

Plan D

On average, State Farm’s quoted prices for Medigap Plan D were about 19% higher than the least-expensive Plan D policy in the area.

State Farm-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$129.74.

$111.

Greensboro, North Carolina

$123.59.

$106.

Sandusky, Ohio

$129.37.

$104.

Plan G

On average, State Farm’s quoted prices for Medigap Plan G were about 27% higher than the least-expensive Plan G policy in the area.

State Farm-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$129.92.

$104.

Greensboro, North Carolina

$123.67.

$96.

Sandusky, Ohio

$129.54.

$101.

Plan N

On average, State Farm’s quoted prices for Medigap Plan N were about 41% higher than the least-expensive Plan N policy in the area.

State Farm-quoted price

Medicare.gov lowest price

Fort Collins, Colorado

$98.58.

$80.

Greensboro, North Carolina

$93.84.

$72.

Sandusky, Ohio

$98.26.

$76.

Discounts

Some Medicare Supplement Insurance providers might offer premium discounts to qualifying enrollees who, for example, bundle multiple kinds of insurance, set up autopay or live with another adult who has a Medigap policy from the same provider.

State Farm doesn’t advertise premium discounts specific to its Medigap policies.

State Farm’s spending on care

71.4% for member benefits

Medicare Supplement Insurance providers must 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, State Farm Medicare Supplement Insurance plans spend about 71.4% of premiums on member benefits

. (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%

Code of Federal Regulations. Title 42, Part 403, Section 215. Accessed Aug 5, 2022.
.

Member complaints

90% fewer than average

State Farm members file complaints about their Medicare Supplement Insurance policies almost 90% less often than the average for all Medigap insurance companies. That’s according to three years’ worth of data (2019-2021) from the National Association of Insurance Commissioners for State Farm

National Association of Insurance Commissioners. Company Complaint Index. Accessed Aug 5, 2022.
.

State Farm’s other insurance products have higher complaint rates. Averaged across all of its insurance offerings, State Farm insurance products have complaint rates about 29% higher than the average for all insurers over the same three years of data.

Customer service

Here’s how State Farm Medigap members can contact customer service:

  • Contact your local State Farm agent.

  • Call State Farm at 800-782-8332 (TTY ​​dial 711 and follow the prompts).

  • Get help online by logging in to your account on State Farm’s website.

  • Contact State Farm through Facebook.

  • Contact State Farm through Twitter.

Third-party ratings

AM Best Financial Strength Rating: A++

AM Best is a credit rating agency that specializes in the insurance industry. In August 2021, AM Best affirmed its Financial Strength Rating, or FSR, of A++ (Superior) for State Farm Mutual Automobile Insurance Company, the State Farm company that offers Medicare Supplement Insurance

.

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

Compare alternatives

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 State Farm

State Farm, headquartered in Bloomington, Illinois, was founded in 1922 to provide auto insurance to rural customers. Its lines of business have since grown to include home, business, life, health and disability insurance, as well as banking, investing and other financial services. Medicare Supplement Insurance is State Farm’s only Medicare product. In 2021, State Farm posted $82.2 billion in total revenue.

Find the right Medicare Supplement Insurance plan

Because Medigap plans are standardized, you can get precisely the same Medicare benefits from any company 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? Health insurance companies 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 between companies, so check to find the most competitive rates.

  • Will your premiums change over time? Most policies cost more as you age, but some companies offer policies that let you lock in a price when you sign up.

  • Are there extras? Medigap plans’ core benefits are standardized, but in certain cases, some companies include such perks as 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).

Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.