State Farm Medicare Supplement Insurance 2023 Review
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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.
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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 company.
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 2021, State Farm covered about 105,000 Medigap beneficiaries and had about a 0.9% share of the total Medicare Supplement Insurance market.
Cost
The following price quotes were obtained for three metropolitan areas representing above-average, average and below-average costs for the most popular Medicare Supplement Insurance plans (Plan G and Plan N):
Los Angeles: More expensive than average.
Atlanta: Average cost for the U.S.
Dallas: 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 any company, based on information from Medicare.gov. For example, State Farm’s price for Medigap Plan A in Los Angeles appears alongside the lowest price on Medicare.gov for all Plan A policies available in Los Angeles to an applicant with identical demographics.
Plan A
On average, State Farm’s quoted prices for Medigap Plan A were about 47% higher than the least-expensive Plan A policy in the area.
State Farm-quoted price | Medicare.gov lowest price | |
|---|---|---|
Los Angeles | $114.24. | $97. |
Atlanta | $184.45. | $108. |
Dallas | $150.28. | $98. |
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 | |
|---|---|---|
Los Angeles | $144.67. | $128. |
Atlanta | $175.61. | $128. |
Dallas | $144.92. | $134. |
Plan G
On average, State Farm’s quoted prices for Medigap Plan G were about 39% higher than the least-expensive Plan G policy in the area.
State Farm-quoted price | Medicare.gov lowest price | |
|---|---|---|
Los Angeles | $144.92. | $128. |
Atlanta | $176.03. | $112. |
Dallas | $145.18. | $99. |
Plan N
On average, State Farm’s quoted prices for Medigap Plan N were about 35% higher than the least-expensive Plan N policy in the area.
State Farm-quoted price | Medicare.gov lowest price | |
|---|---|---|
Los Angeles | $110.84. | $98. |
Atlanta | $134.81. | $86. |
Dallas | $104.46. | $77. |
Discounts
Some Medicare Supplement Insurance companies 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 company.
State Farm doesn’t advertise premium discounts specific to its Medigap policies.
State Farm’s spending on care
72.9% for member benefits
Medicare Supplement Insurance companies 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 72.9% of premiums on member benefits. (The other 27.1% goes to overhead expenses like administrative costs, marketing, salaries and commissions.)
For comparison, the average for all companies is 77.3%. The minimum required by law for individual Medigap policies is 60%.
Member complaints
90% fewer complaints 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 (2020-2022) from the National Association of Insurance Commissioners for State Farm.
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 36% higher than the average for all companies over the same three years of data.
Customer service
Here’s how State Farm Medigap members can contact customer service:
Third-party ratings
Compare alternatives
Compare Medicare Supplement Insurance companies |
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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 2022, State Farm posted $89.3 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.
