USAA Medicare Supplement Insurance 2022 Review
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USAA is a financial services company serving current and former U.S. military members. Its services include banking, investing, retirement and insurance. USAA offers Medicare Supplement Insurance, or Medigap, in 45 states and Washington, D.C.
You need to be a USAA member to buy most USAA products. Membership is free, but it’s available only to current and former U.S. military members, their spouses and children. However, USAA Medicare Supplement Insurance is considered a USAA life insurance product, and individuals without a military association can apply for USAA life insurance products.
Here’s what you need to know about USAA Medicare Supplement Insurance.
USAA Medicare Supplement Insurance pros and cons
USAA’s Medigap offerings have advantages and disadvantages.
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Available Medicare Supplement Insurance plans
USAA generally offers three Medicare Supplement Insurance plans for purchase by any Medicare member:
Medigap Plan A — the basic benefits included in every Medigap plan without any extras.
Medigap Plan G — the highest-coverage option available to new Medicare members.
Medigap Plan N — a plan with lower premiums but higher copays.
USAA also offers 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.
USAA offers additional plan types in some states. Select your state on USAA’s website to see the Medigap plan types available in your location.
Additional benefits
Medigap plans have standardized Medicare benefits, but insurers can offer additional perks. While some competitors offer extra benefits like gym memberships or discounts on hearing aids and eyewear, USAA doesn’t publicize similar extras for its Medicare Supplement Insurance policies.
USAA does offer certain perks and discounts on products and services to its members, but these are available regardless of whether the member holds a USAA Medigap policy.
USAA Medicare Supplement Insurance service area
USAA offers Medicare Supplement Insurance policies in 45 states and Washington, D.C. (USAA doesn’t offer Medigap policies in Massachusetts, Minnesota, New Jersey, New York or Wisconsin.)
USAA covers about 154,000 Medigap beneficiaries and has about a 1.2% share of the total Medicare Supplement Insurance market.
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:
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 USAA 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, USAA’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, USAA’s quoted prices for Medigap Plan A were about 46% higher than the least-expensive Plan A policy in the area.
USAA-quoted price | Medicare.gov lowest price | |
|---|---|---|
Fort Collins, Colorado | $102.17. | $70. |
Greensboro, North Carolina | $101.83. | $81. |
Sandusky, Ohio | $114.24. | $69. |
Plan G
On average, USAA’s quoted prices for Medigap Plan G were about 44% higher than the least-expensive Plan G policy in the area.
USAA-quoted price | Medicare.gov lowest price | |
|---|---|---|
Fort Collins, Colorado | $149.94. | $97. |
Greensboro, North Carolina | $128.18. | $87. |
Sandusky, Ohio | $120.19. | $92. |
Plan N
On average, USAA’s quoted prices for Medigap Plan N were about 61% higher than the least-expensive Plan N policy in the area.
USAA-quoted price | Medicare.gov lowest price | |
|---|---|---|
Fort Collins, Colorado | $117.13. | $70. |
Greensboro, North Carolina | $116.79. | $68. |
Sandusky, Ohio | $105.40. | $73. |
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.
USAA members can receive discounts on premiums if they pay monthly or quarterly, a USAA representative said in an email.
USAA’s spending on care
71.7% 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, USAA Medicare Supplement Insurance plans spend about 71.7% of premiums on member benefits. (The other 28.3% 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%.
Member complaints
50% below average
Members file complaints about Medicare Supplement Insurance policies from USAA half as often as the average for all Medigap plans. This is according to three years’ worth of data (2019-2021) from the National Association of Insurance Commissioners for USAA.
USAA’s complaint rate across all of its insurance offerings is even lower, with a complaint rate for all policy types about 89% below the average for all insurers over the same three years of data.
Customer service
Here’s how USAA Medigap members can contact customer service:
Call USAA customer support at 210-531-8722 or 800-531-8722, Monday to Friday, from 7:30 a.m. to 8:00 p.m. Central time.
Send a secure message by logging into your USAA account online.
Chat with a virtual assistant on USAA’s Contact Us website.
Contact USAA through Facebook.
Contact USAA 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:
Compare alternatives
Here's how Medicare Supplement Insurance providers compare with USAA.
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 USAA
USAA was founded in 1922 by Army officers in order to insure one another’s vehicles. Today, the company offers banking, investing, insurance and other financial services to its 13 million members. Members include current and former U.S. military personnel and their spouses and children.
USAA is headquartered in San Antonio, Texas. In 2020, USAA’s annual revenue was $36.3 billion.
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).
