7 Best Health Insurance Plans for Retirees and Seniors
For most seniors and retirees, the best health insurance plan will be through Medicare. Consider a Medicare Advantage plan from Humana if you care most about price.
If you want more flexibility when it comes to choosing your doctor, choose a Medicare Supplement Plan G from AARP/UnitedHealthcare (UHC).
Compare Medicare Plans in Your Area
Best overall: Medicare
Medicare is the best health insurance option for seniors and retirees.
Medicare is the cheapest health insurance with the best benefits for people age 65 and older or who have a qualifying disability. You can choose between two different options: Original Medicare and Medicare Advantage.
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Original Medicare combines Part A (hospital insurance) and Part B (medical insurance). Original Medicare is run directly by the government. With Original Medicare, you can get care from 99% of the doctors in the country.
On top of Original Medicare, you can add extra coverage from private health insurance companies through a Medicare Supplement plan (also called Medigap). This lowers your portion of the medical costs from 20% of the bill to nearly $0.
Another add-on is a Medicare Part D plan for prescription drug coverage, which is your only way to get prescription benefits with Original Medicare.
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Medicare Advantage (also called Medicare Part C) is a health insurance plan that you buy from a private insurance company. Plans have the same coverage as Original Medicare, and they typically include prescription drug benefits, dental and vision.
Medicare Advantage plans work like traditional health insurance plans. You'll need to use an in-network doctor or hospital to get the cheapest rates on medical care. Plans also have copayments that you pay for each medical service, a deductible and an out-of-pocket maximum.
Best if you have a low income: Medicaid
Medicaid is the most affordable plan for seniors and retirees who have low incomes.
Medicaid offers free health insurance to people who earn a low income. Even if you already have Medicare, you can dual enroll in both Medicaid and Medicare to lower your medical costs.
Income limits for Medicaid vary by state. In 38 states and Washington, D.C., you can qualify for Medicaid if you earn about $20,000 as an individual or roughly $27,000 as a couple. The limits are higher in Alaska and Hawaii. And in 10 states, the income limit is lower.
Seniors aged 65 and over who earn too much to qualify for Medicaid may still be able to qualify if they have high medical costs. The Medicaid spend down program lets you subtract your medical costs from your income, and this reduced amount can be used to qualify for Medicaid.
Best Medicare Advantage: Humana
Humana has the best Medicare Advantage plans because of its low prices, good coverage and high levels of customer satisfaction.
Humana has the best combination of affordability, coverage and plan quality. It's also available nationwide. This overall strong performance makes it the best Medicare Advantage company.
Bundled Medicare Advantage plans are sold by private insurance companies. Most people have access to Medicare Advantage plans starting at $0 per month, and the average cost is $27 per month. Remember to check that your doctor is in the plan's network before signing up.
Want more options? Look into the best Medicare Advantage plans.
Best Medicare Supplement: AARP/UnitedHealthcare
Medicare Supplement Plan G has the best overall coverage for new enrollees. AARP/UnitedHealthcare is the best company for Medigap plans.
For most people, the best company for Medigap coverage is AARP/UnitedHealthcare. Medicare Supplement (Medigap) plans help pay for the costs that you usually pay if you have regular Medicare.
Medigap plans usually cost more than Medicare Advantage. However, you'll usually pay less when you get medical care with a Medigap plan than with a Medicare Advantage plan. This is especially useful for seniors who are concerned about medical costs rising as they age.
With Medigap, you can go to any doctor who accepts Medicare. Plus, coverage is standardized by plan letter. That means Medigap Plan G from one company will have the same benefits as Plan G from another company.
It's a good idea to first choose the plan letter with the benefits you want. Then pick a company that has affordable prices, good ratings and useful add-on benefits.
- Why Plan G? As the best plan available to new enrollees, Plan G offers coverage for all available Supplement benefit categories except the Medicare Part B deductible. The only better option is Plan F, which you can't buy unless you became eligible for Medicare before Jan. 1, 2020.
- What does Plan G cover? The plan pays for Medicare Part A copayments and the deductible, so you won't pay anything for hospital stays, hospice care or a skilled nursing facility. It pays for all Medicare Part B copays and excess charges, so all doctor appointments, treatments and tests will be free after you meet your deductible. It also covers the cost of blood transfusions and 80% of foreign travel emergency medical costs.
- What medical care will you pay for with Plan G? Plan G doesn't cover the annual Medicare Part B deductible, which is only $240. This means you'll have to pay for some medical care at the beginning of the policy year before your spending reaches that amount.
Want more options? Check out all the top picks for the best Medicare Supplement plans.
Best prescription drug plan: Wellcare
Wellcare has the best overall Medicare Part D plans for prescription drugs and stands out for its combination of good ratings and affordability.
Wellcare is the best Medicare Part D company because it has the highest average rating on Medicare.gov. Plus, plans are affordable, and it's the only company to have options that cost less than $1 per month.
If you choose Original Medicare, the only way to have coverage for prescription drugs is to sign up for a stand-alone prescription drug plan called Medicare Part D. It's important to get Part D because you may need more prescription drugs as you get older, and medications can be very expensive.
A Part D plan isn't usually needed if you choose Medicare Advantage because prescription drug coverage is included in those plans. However, there are some less common circumstances where you can add on Part D such as if your Medicare Advantage plan is a Private Fee-for-Service (PFFS) plan or a Medical Savings Account (MSA).
Want more options? Check out all the top picks for the best Medicare Part D plans.
Best if you’re under 65: Blue Cross Blue Shield
Blue Cross Blue Shield is the best company for private health insurance plans.
Blue Cross Blue Shield (BCBS) has the best overall health insurance plans. They're well-rated and widely available through HealthCare.gov or your state marketplace.
A traditional health insurance plan is the best option if you're under 65, don't yet qualify for Medicare and earn too much to qualify for Medicaid. If you don't have employer-based coverage, you can get the best deal on health insurance plans through HealthCare.gov, also called the health insurance marketplace.
Health insurance costs can get very high as you age. However, you can get government subsidies, called premium tax credits, if you have a low or moderate income and you buy your plan through the health insurance marketplace.
Want more options? Check out all the top picks for the best health insurance companies.
Best short-term coverage: UnitedHealthcare
UnitedHealthcare is the best overall company for short-term health insurance plans.
UnitedHealthcare's short-term plans offer some of the broadest coverage available for this type of insurance.
If you have a gap in your insurance coverage, such as after retirement and before Medicare, a short-term policy is a quick way to get benefits. The cost for a short-term plan is usually very low. But, plans don't have to cover as much as traditional insurance. This is important because short-term plans don't usually offer as many benefits as regular health insurance. Also, you may not qualify for a plan because of your age or if you have a preexisting condition.
Short-term policies are usually only a good idea if you need some coverage for a few months before your Medicare plan or traditional health insurance policy begins.
Want more options? Check out all the top picks for the best short-term health insurance plans.
Frequently asked questions
When do seniors qualify for Medicare?
At age 65, all seniors qualify for Medicare, although some people can qualify earlier because of a disability or medical condition.
How much is health insurance for seniors?
You can expect to pay $174.70 per month for Medicare Part B in 2024. You'll pay an extra $27 per month on average if you have a Medicare Advantage (Part C) plan.
For those aged 60 to 65, the full price for a Silver individual health insurance policy can be more than $1,000 per month. However, with marketplace plans, health insurance subsidies can lower your rates if you have a low to moderate income.
What’s the average monthly cost of health insurance for a retired couple?
For a senior couple, the average cost of Medicare is $54 per month for two Medicare Advantage plan bundles. That's on top of the $349 per month that's automatically deducted from their Social Security for two Medicare Part B plans. Most enrollees don't pay anything for Medicare Part A.
Is health insurance tax-deductible for retirees?
Yes, the cost of Medicare or health insurance is considered a medical cost and is tax-deductible on your federal income taxes. This only applies to plans that you pay for out of pocket and would not include a plan that's paid out of a pension or with a Social Security deduction.
Is retiring a qualifying event for health insurance?
No, retiring itself is not a qualifying event. But, you can sign up for health insurance if you lose your existing coverage because you retire. You'll usually have 60 days after losing coverage to sign up for a plan.
Methodology
Health insurance plan data is from the Centers for Medicare & Medicaid Services (CMS) public use files and insurance company plan documents. Companies were compared on a variety of factors including cost, coverage, benefits and networks of doctors. Other sources include:
- HealthCare.gov's report on current federal poverty level (FPL) amounts
- KFF's report on Medicaid expansion
- Ratings and complaints from HealthCare.gov, J.D. Power, AM Best, the National Committee for Quality Assurance (NCQA) and the NAIC
Medicare Advantage rates are only for plans that include prescription drug benefits. The rate analysis excludes employer-sponsored plans, Special Needs Plans, PACE plans, sanctioned plans and Health Care Prepayment Plans (HCPPs). Medigap costs are based on comprehensive actuarial data for all private insurers, using quotes for a 65-year-old female nonsmoker.
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Invitations for application for insurance may be made through QW Insurance Solutions, LLC (“QWIS”), a separate subsidiary of QuoteWizard, LLC (“QuoteWizard”), a LendingTree subsidiary, or through its designated agents, only where licensed and appointed. QWIS is a non-government licensed health insurance agency and is not affiliated with or endorsed by any government agency. Find licensing information for QWIS.
Callers will be directed to a licensed and certified representative of Medicare Supplement insurance and/or Medicare Advantage HMO, HMO SNP, PPO, PPO SNP and PFFS organizations. Calls will be routed to a licensed insurance agent who can provide you with further information about the insurance plans offered by one or more nationally recognized insurance companies. Each of the organizations they represent has a Medicare contract. Enrollment in any plan depends on contract renewal.
Availability of benefits and plans varies by carrier and location and may be limited to certain times of the year, unless you qualify for a Special Enrollment Period. We do not offer every plan available in your area. Currently we represent 73 organizations that offer 5,110 products in your area. Contact Medicare.gov or 1-800-MEDICARE, or your local State Health Insurance Program (SHIP), to get information on all of your options.
These numbers provided are not specific to your area, but rather represent the number of organizations and the number of products available on a national basis. We will connect you with licensed insurance agents who can provide information about the number of organizations they represent and the number of products they offer in your service area. Not all plans offer all of these benefits. Benefits may vary by carrier and location. Limitations and exclusions may apply.
Medicare has neither reviewed nor endorsed the information contained on this website.
Medicare supplement insurance is available to people age 65 or older enrolled in Medicare Parts A and B, and in some states to those under age 65 eligible for Medicare due to disability or end stage renal disease.
Medicare Advantage and Part D plans and benefits are offered by these carriers: Aetna Medicare, Anthem Blue Cross Blue Shield, Anthem Blue Cross, Aspire Health Plan, Cigna Healthcare, Dean Health Plan, Devoted Health, Florida Blue Medicare, GlobalHealth, Health Care Service Corporation, Healthy Blue, Humana, Molina Healthcare, Mutual of Omaha, Premera Blue Cross, Medica Central Health Plan, SCAN Health Plan, Baylor Scott & White Health Plan, Simply, UnitedHealthcare, Wellcare and WellPoint.
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