7 Best Health Insurance Plans for Retirees and Seniors
For most seniors and retirees, the best health insurance plan will be a Medicare plan. We recommend either a Medicare Advantage plan from Humana or a Medicare Supplement Plan G from AARP/UnitedHealthcare (UHC).
Find Cheap Medicare Plans in Your Area
There may be another good option depending on your age and income. If you have a low income, you may qualify for Medicaid, which is free or low-cost. And if you're under 65 and don't qualify for Medicare, we recommend a Blue Cross Blue Shield (BCBS) plan from the health insurance marketplace.
Best overall: Medicare
Medicare is the best health insurance option for seniors and retirees.
For those age 65 and older or who have a qualifying disability, the Medicare program will be the cheapest health insurance with the best benefits. When you were working, you paid into the Medicare program via a Medicare tax on income. Your senior years are the time to take advantage of this investment.
Medicare has several different parts including options from private insurance companies and a public option directly through the Medicare agency. This variety allows you to decide what type of plan works best for you.
There are two main pathways for enrolling in Medicare coverage:
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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 provide bundled coverage for medical care and hospital care, and they typically include prescription drug coverage, dental and vision.
Medicare Advantage plans are similar to traditional health insurance plans in how they are structured. 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. .
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Original Medicare lets you combine multiple plans including Part A (hospital insurance) and Part B (medical insurance). These two plans are administered directly by the government, and enrollees have coverage at 99% of the doctors and hospitals in the country.
On top of these plans, you can add on extra coverage from private health insurance companies. You can choose a Medicare Supplement plan (also called Medigap), which reduces 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, your only way of getting prescription benefits with Original Medicare.
Best if you have a low income: Medicaid
Medicaid is the most affordable plan for seniors and retirees who have low incomes.
The Medicaid public health insurance program provides free or affordable insurance for those who are eligible. Even if you're over age 65 or enrolled in Medicare, you can qualify for dual enrollment in both Medicaid and Medicare, which will lower your costs.
Qualification criteria for Medicaid vary by state. In 39 states and Washington, D.C., you can qualify for Medicaid if you earn up to 138% of the federal poverty level, which means you're usually eligible if you earn less than $18,754 as an individual or $25,268 as a couple for 2022. The limits are higher in Alaska and Hawaii, and in 11 states, Medicaid eligibility requires a lower income and can vary by state or situation.
Seniors over age 65 who have incomes that are too high to qualify for Medicaid may still be able to qualify if they have high medical expenses. The Medicaid "spenddown" program lets you subtract your medical expenses from your income, and this reduced amount can be used for Medicaid eligibility.
Best Medicare Advantage: Humana
Humana has the best Medicare Advantage plans because the plans provide a good value on coverage and are well-rated.
Humana stands out as providing the ideal combination of low-cost plans with good coverage that are widely available and have reasonably good ratings. This overall strong performance makes it our pick as the best Medicare Advantage plan provider.
Bundled Medicare Advantage plans are administered by private insurance companies, and you could have more than 20 plans offered in your area. Most people will have access to Medicare Advantage plans starting at $0 per month, and the average cost is $28 per month. Remember to check that your doctor is in the plan's network before signing up.
Want more options? Check out all our picks for the best Medicare Advantage plans.
Best Medicare Supplement: AARP/UnitedHealthcare
Medicare Supplement Plan G has the best overall coverage for new enrollees, and AARP/UnitedHealthcare is the best provider.
Medicare Supplement (Medigap) plans provide secondary coverage on top of your Original Medicare benefits. Medigap plans will usually cost more than Medicare Advantage, but typically, you'll pay less for medical care with a Medigap plan than with a Medicare Advantage plan. This is especially useful for seniors who are concerned about escalating medical costs as they age.
With Medigap, you can go to any doctor who accepts Medicare, which is most of the medical providers in the country. 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.
Because of this, we recommend that you first choose the plan letter with the benefits you want and then choose the provider that has affordable prices, good ratings and useful add-on perks. For most people, the best provider is AARP/UnitedHealthcare.
- Why Plan G? As the best plan available to new enrollees, Plan G provides coverage for all available Supplement benefit categories except the Medicare Part B deductible. The only better option is Plan F, which is not available to new enrollees.
- What does Plan G cover? The plan pays for Medicare Part A copayments and the deductible, so you won't pay anything for hospitalization, hospice care or a skilled nursing facility. It pays for all Medicare Part B copayments and excess charges, so all doctor appointments, treatments and tests will be free after you meet your deductible. It also covers 3 pints of blood and 80% of emergency medical costs when you travel internationally.
- What medical care will you pay for with Plan G? Plan G doesn't cover the annual Medicare Part B deductible, which is only $226. This means you'll have some out-of-pocket costs for medical care at the beginning of the policy year before your spending reaches that amount.
Want more options? Check out all our picks for the best Medicare Supplement plans.
Best prescription drug plan: Aetna
Aetna/SilverScript has the best overall Medicare Part D plans for prescription drugs and stands out for its combination of good ratings and affordability.
Aetna/SilverScript is the best Medicare Part D provider because you can get good benefits at affordable prices, starting at just $6 per month.
For those choosing 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. This is an important coverage component for seniors and retirees because your use of prescription drugs can increase as you age, and medications can be very expensive.
A Part D plan isn't needed for most people choosing Medicare Advantage because prescription drug coverage is included in the plan's benefits. 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 our 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 insurance company offering plans on the health insurance marketplace.
Blue Cross Blue Shield has the best overall health insurance plans. They're well-rated plans 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. You can get the best deal on these plans through HealthCare.gov, also called the health insurance marketplace.
Health insurance costs can get very high as you age, and for those over 60, a Silver insurance plan costs more than $1,000 per month, on average. However, the health insurance marketplace has a program that offers premium tax credits, which provide discounted rates for those who have low to moderate incomes.
For example, an individual earning $54,360 per year (400% of the federal poverty level) would pay about $387 per month for a Silver health insurance plan. These earnings could include retirement account withdrawals, self-employment earnings, unemployment income or other income sources.
Want more options? Check out all our 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 provide 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 are not regulated in the same way as traditional insurance. This is important to note because some benefits will be limited, and you may not qualify for a plan because of your age or if you have a preexisting condition.
Seniors should use caution when selecting a short-term policy over other types of health insurance. However, they're a useful solution 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 our picks for the best short-term health insurance plans.
Frequently asked questions
When do seniors qualify for Medicare?
At age 65, all seniors will qualify for Medicare, although some people can qualify earlier because of a disability or medical condition.
How much is health insurance for seniors?
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, the premium tax credit will provide discounted rates for those who have a low to moderate income. After a senior qualifies for Medicare at age 65, their health insurance will typically cost $193 per month for both Medicare Part B and Part C.
What’s the average monthly cost of health insurance for a retired couple?
For a senior couple, the average cost of Medicare is $56 per month for two Medicare Advantage plan bundles. That's on top of the $329.80 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.
Are health insurance premiums tax-deductible for retirees?
Yes, the cost of Medicare or health insurance is considered a medical expense 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?
Retiring itself is not considered a qualifying event. However, losing your health insurance coverage is a qualifying event that allows you to sign up for insurance on the health insurance marketplace via a special enrollment period (SEP). You'll usually have 60 days after losing coverage to sign up for a plan. After that, you can sign up in the fall during open enrollment.
Methodology
Health insurance plan data was sourced from the Centers for Medicare & Medicaid Services (CMS) public use files and insurance providers. Insurers were compared based on a variety of factors including cost, coverage, benefits and provider networks. Other sources include:
- HealthCare.gov's report on current federal poverty level (FPL) amounts
- Kaiser Family Foundation's report on Medicaid expansion
- Ratings and complaints from J.D. Power, AM Best, NCQA and the NAIC
Medicare Advantage costs only consider plans that include prescription drug benefits. Our 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 subsidiary of QuoteWizard.com, LLC ("QuoteWizard"), a LendingTree subsidiary, or through its designated agents, only where licensed and appointed. Licensing information for QWIS can be found here. QWIS is a non-government licensed health insurance agency. Not affiliated with or endorsed by any government agency.
Callers to QWIS 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 to QWIS will be routed to a licensed agent who can provide you with further information about the insurance plans offered by one or more third-party partners of QWIS. 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. QWIS does not offer every plan available in your area. Any information provided is limited to those plans offered in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
Deductibles, copays, coinsurance, limitations, and exclusions may apply.
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