Best Medicare Insurance Companies 2021

How We Rate Medicare Insurance Companies

MEDICARE-ELIGIBLE beneficiaries can enroll in a Medicare Advantage plan or a Part D Prescription Drug plan from a private insurance company. U.S. News provides a tool for Medicare-eligible beneficiaries to find the right Medicare plans for their needs.

U.S. News analyzed insurance companies’ offerings in each state based on their 2021 CMS star ratings, and below provides a list of U.S. News & World Report's Best Insurance Companies for Medicare Advantage and Best Insurance Companies for Part D Prescription Drug Plans. These are defined as companies whose plans were all rated as at least three out of five stars by CMS and whose plans have an average rating of 4.5 or more stars within the state. All plan information and star ratings come directly from the Center for Medicare and Medicaid Services (CMS) at Medicare.gov. Read more about our methodology.

Other insurance companies have 5-star rated plans. Anyone researching Medicare Advantage or Part D Prescription Drug plans should compare individual plans offered in their service area.

What is Medicare Advantage?

Decoding Medicare health insurance plan options can be daunting for Medicare beneficiaries. People usually qualify for Medicare at age 65 and may be automatically signed up if they're receiving Social Security payments, unless they take steps to opt out. Original Medicare comes in two parts: Part A and Part B. Part A covers a portion of hospitalization expenses, and Part B applies to doctor bills and other medical expenses, such as lab tests and some preventive screenings.

But some individuals may find better value in Medicare Advantage plans. Such plans are run by private insurance companies regulated by the government, and they must offer coverage that's comparable to Original Medicare parts A and B. Most Medicare Advantage plans also include prescription drug coverage, which is an optional add-on called Part D for beneficiaries who keep Original Medicare.

Some Medicare Advantage plans have a $0 monthly premium, while others come with a higher monthly premium. You must continue to pay your Part B premium, which is $144.60 per month for most beneficiaries in 2020. Medicare Advantage plans are similar to individual health insurance policies you may have received through your employer or signed up for on your own through the individual insurance market, in that they have different monthly premiums, provider networks, copays, coinsurance and out-of-pocket limits. The trade-off for a lower premium (or $0 premium) could be higher copays or coinsurance.

What is Medicare Supplement (MediGap) Insurance?

When it comes to signing up for Medicare, there's plenty of confusion. Which part of the four-part program covers hospital stays? Do all parts help pay for prescription drugs? What's the difference between Original Medicare, Medicare Advantage and Medicare Supplement Insurance?

Medicare itself has four parts. Part A (hospital insurance) and Part B (health insurance) come standard in every Original Medicare Plan. Part C is called Medicare Advantage, and it's an alternative to a standard Medicare Plan that offers some additional benefits like prescription drug coverage. Stand-alone prescription drug plans, or Part D, cover prescription drugs for those who want to keep their Original Medicare plans. And then there is Medigap, or Medicare Supplemental Insurance.

Medicare Supplement Insurance plans are private health insurance plans that can help you pay for the "gaps" in your traditional Medicare policy – such as copayments at a doctor's office, coinsurance at skilled nursing facilities and out-of-pocket hospital costs not covered by Medicare Part A. There are 10 different types of Medicare Supplement Insurance plans, each designated by a letter of the alphabet (you can find details about all 10 plans at Medicare.gov). In most states, the benefits are the same no matter what insurance company you purchase the plan from, though each plan covers different things. Premium prices for each of the 10 Medigap plans varies depending on the benefits offered, and the premiums are separate from your regular Medicare premiums.

Your Medicare Coverage

Most retirees receive health insurance through Medicare, the federal government's health insurance program for people age 65 and older. To maximize the value of the health plan, make sure to sign up at the correct time and take advantage of the free and low-cost services Medicare provides. Here's what Medicare covers and how much you can expect to pay for benefits and services.

When is Medicare Open Enrollment Period?

The annual Fall Open Enrollment Period, also known as the Annual Election Period, is a time when people with Medicare can choose or alter their Medicare coverage. The Medicare Fall Open Enrollment runs from Oct. 15 to Dec. 7 of each year.

Finding the right Medicare plan to fit your needs, reviewing deductibles and understanding the prescription drug coverage gap, or "donut hole," can be confusing when you don't know where to look for information.

According to Paula Muschler, operations manager for Allsup, a private company that advises Medicare beneficiaries on their coverage options, the Affordable Care Act launched in 2014 has created confusion for enrollees. Medicare beneficiaries, she says, often ask about Obamacare (another name for the Affordable Care Act) and want to know: "How does this affect me?"

The answer: not much. What follows are some FAQs about the Affordable Care Act vs. Medicare and what beneficiaries should consider during the Medicare Fall Open Enrollment Period:

Q: Does the Affordable Care Act impact my Medicare?

How to choose the best Medicare Advantage plans for you

Between Oct. 15 and Dec. 7, Medicare's Annual Open Enrollment Period, millions of Medicare beneficiaries have a chance to make changes to their coverage for the upcoming year.

There are a few things you can do during this period.

You can change from one Medicare Advantage or Prescription Drug Plan to another. People currently enrolled in Original Medicare, which includes Part A and Part B, can also switch to a private Medicare Advantage plan, or they can drop their existing Medicare Advantage coverage to return to Original Medicare.

Making sense of Medicare, which is the federal health insurance program, may not be easy for those who qualify if they don’t know where to find information. "It's like root canal every year having to get yourself up to speed on what's covered by your plan and what's not," admits Bob Hurley, president of eHealthMedicare.com. But by focusing on a few key areas and knowing where to turn for help if you need it, you can identify a plan that will work for you.

Here are six things to consider when shopping for your Medicare coverage options.