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USAA Medicare Supplement Insurance Review
Members file few complaints about USAA Medigap policies, but some competitors offer lower prices and more perks.
Alex Rosenberg Lead Writer | Medicare, health care, legislation
Alex Rosenberg is a NerdWallet writer focusing on Medicare and information technology. He has more than 10 years of experience researching and writing about health care, insurance, technology, data privacy and public policy. His research has supported lawmakers in the Wisconsin State Legislature as well as health systems and national health authorities in the U.S. and more than 10 other countries. He is based in Stoughton, Wisconsin.
Holly Carey joined NerdWallet in 2021 as an editor on the team responsible for expanding content to additional topics within personal finance. She currently leads the Medicare team. Previously, Holly wrote and edited content and developed digital media strategies as a public affairs officer for the U.S. Navy. She is based in Virginia Beach, Virginia.
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Complaint rates for USAA's Medigap policies are significantly lower than the industry average. But prices can be high, and there are few discounts or extra perks compared to some competitors.
Plan types offeredMedigap plan types the company generally offers (availability may vary by location). Options include Plans A, B, C, D, F, G, K, L, M and N
A, F, G and N.
NAIC complaint rateHow often the company’s members file complaints about their policies as compared to the industry average, according to data from the National Association of Insurance Commissioners (NAIC). NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Premium discounts availableBased on the number and size of a company’s available discounts on monthly premiums, in comparison to other insurance companies.
Below average
Pros
Complaint rates below the market average.
High financial strength ratings.
Military-focused tools and resources.
Cons
Only Plans A, G, and N offered for new Medicare members.
Higher premiums in most locations.
Few discounts or extra health and wellness perks.
Plan types offeredMedigap plan types the company generally offers (availability may vary by location). Options include Plans A, B, C, D, F, G, K, L, M and N
A, F, G and N.
NAIC complaint rateHow often the company’s members file complaints about their policies as compared to the industry average, according to data from the National Association of Insurance Commissioners (NAIC). NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Premium discounts availableBased on the number and size of a company’s available discounts on monthly premiums, in comparison to other insurance companies.
Below average
Pros
Complaint rates below the market average.
High financial strength ratings.
Military-focused tools and resources.
Cons
Only Plans A, G, and N offered for new Medicare members.
Higher premiums in most locations.
Few discounts or extra health and wellness perks.
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.
Pros
Cons
Minimal member complaints. Complaint rates for USAA Medigap policies are below the market average.
Financial strength. USAA has some of the health insurance industry’s highest financial strength ratings, so there’s little doubt that it can meet its obligations.
Military-focused advice. Because USAA members have military connections, it offers tools and resources tailored for current and former service members’ financial issues and questions.
Limited plan selection. USAA offers only Medigap Plan A, Plan G and Plan N for new Medicare members in most states, plus Plan F for those who qualify.
Prices can be high. USAA policies are often significantly more expensive than alternatives available in the same location.
Few discounts and perks. USAA doesn’t match competitors’ offerings for premium discounts or perks, such as gym memberships or hearing and vision products.
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 company.
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.
Cost for USAA Medicare Supplement Insurance
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)
The sections below show pricing information from USAA for a 65-year-old female nonsmoker and reflect “base” pricing with optional 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 companies, based on information from Medicare.gov. For example, USAA’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, USAA’s quoted prices for Medigap Plan A were about 36% higher than the least-expensive Plan A policy in the area.
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.
USAA recently started offering discounts when two or more USAA Medigap members live in the same household in certain locations. The company will be adding more discounts in additional states, a USAA representative said in an email.
USAA member complaints
23% fewer complaints than average
Members file complaints about Medicare Supplement Insurance policies from USAA 23% less often than the average for all Medigap plans. This is according to 2022 data from the National Association of Insurance Commissioners for USAA
National Association of Insurance Commissioners. Company Complaint Index. Accessed Aug 3, 2023.
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, 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.
Third-party ratings
There are a few companies that weigh in on customers’ experiences with insurance companies 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 May 2023, AM Best affirmed its Financial Strength Rating of A++ (Superior) for USAA and its property/casualty and life/health subsidiaries
An A++ rating in this category indicates that AM Best has a superior ability to meet its ongoing insurance obligations, according to AM Best.
Moody’s Investors Service: Aa1
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 March 2023, Moody’s affirmed its Aa1 insurance financial strength rating, but changed the rating outlook from stable to negative for USAA Life Insurance Company — the USAA subsidiary responsible for Medicare Supplement Insurance
An Aa1 rating indicates that Moody’s considers USAA’s obligations to be a very low credit risk and that USAA is on the higher end of this rating category. A negative outlook indicates that Moody’s expects the rating to move downward over the medium term.
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 156,000 Medigap beneficiaries and has about a 1.2% share of the total Medicare Supplement Insurance market
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 2022, 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).
