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Average Premiums between Minnesota’s Supplement Insurance Companies
by Abraham

Minnesota is currently comprised of 87 counties with 19 different Medicare supplement insurance carriers.

As of June 1, 2010 however, several new plans have been made available by NAIC, and some of Minnesota’s insurance companies have adopted those standardized plans in addition to their own (Plans K, L, M, N, & the high deductible Plan F).

While most of America (47 states) must consign to the National Association of Insurance Commissioners (NAIC) standardization of Medigap policies, Minnesota does not. Minnesota is one of the three waiver states that standardized their Medicare supplement plans before NAIC’s involvement in 1990. Because of this, so long as the plans offered cover the basic requirements, Minnesota (along with Massachusetts and Wisconsin) is able to continue issuing their Medicare supplement plans.

outline map of minnesota on blackboard

In America, 17% of Medicare beneficiaries enroll in Medicare supplement coverage, which is approximately 9.8 million Americans. In Minnesota, the number of Medicare-enrolled seniors, who also enroll in Medigap is 35.47% (in 2012). This makes Medigap the number one choice for supplemental insurance among Minnesota’s Medicare seniors.

Medigap’s popularity among the citizens of Minnesota is due to its amount of coverage and cost effectiveness. Medigap policies are preferred to retiree insurance because it can be limiting with various stipulations to coverage and HMO plans can be extremely expensive.

Additionally, many Medigap enrollees are willing and able to spend more for their supplemental coverage because many do not have prescription drug coverage, which would otherwise require another monthly premium. Even though studies have shown that Minnesota Medigap enrollees tend to have higher incomes than the nation’s average, in 2012, only 21% of Minnesota’s Medicare beneficiaries were enrolled in Medicare Part D (Drug Plan).

For Medigap enrollees, this is because of their satisfaction with their current supplemental insurance plans.

Minnesota’s Medigap Plans

Minnesota’s 2 state-specific plans are the Basic Plan and the Extended Basic Plan. Both are required to cover Basic Benefits, which includes:

  • Hospital care coinsurance
  • Hospice care
  • The first 3 pints of blood annually
  • Medicare Part B coinsurance
  • Medicare Parts A & B home health services/supplies.

Additionally, the 2 plans vary as featured below:

A chart comparing Minnesota's Medigap Plans.

The following is the list of 18 (of the 19*) supplemental insurance providers in Minnesota. The data features their average annual costs, plans offered, and how they price their various policies.

The averages include the differences in premiums between rural, urban, smoking, & non-smoking. So actual pricing will vary based on those factors.

American Republic Corp. Insurance Company
Basic Plan (Avg):
$1,960.17

(Mandatory Riders)
Medicare Part A Deductible: $383
Medicare Part B Deductible: $140
Part B Excess Charges: $46
Non-Medicare Prevention: $120
w/ all 4 Riders (Avg): $2,649.17

Extended Basic (Avg): $4,110.50

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

Blue Cross & Blue Shield
Basic Plan (Avg): 
$1,896

(Mandatory Riders)
Medicare Part A Deductible: $744
Medicare Part B Deductible: $140
Part B Excess Charges: $12
Non-Medicare Prevention: $48
w/ all 4 Riders (Avg): $2,840

Extended Basic (Avg): $6,936

Plan F: N/A
Plan K (Avg): $1,416
Plan L (Avg): $1,878
Plan M: N/A
Plan N: N/A

Colonial Penn
Basic Plan (Avg): 
$1,925

(Mandatory Riders)
Medicare Part A Deductible: $584.50
Medicare Part B Deductible: $137.50
Part B Excess Charges: $59.50
Non-Medicare Prevention: $43
w/ all 4 Riders (Avg): $2,749.50

Extended Basic (Avg): $2,747

Plan F (Avg): $627
Plan K (Avg): $909
Plan L (Avg): $1,562.50
Plan M (Avg): $2,119
Plan N (Avg): $1,532

Continental Life of Brentwood Tennessee
Basic Plan (Avg):
 $1,454

(Mandatory Riders)
Medicare Part A Deductible: $346.50
Medicare Part B Deductible: $140
Part B Excess Charges: $76.50
Non-Medicare Prevention: $57
w/ all 4 Riders (Avg): $2,074

Extended Basic (Avg): $3,320

Plan F (Avg): $718
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N (Avg): $1,462.50

Family Life
Basic Plan (Avg): 
$1,656.50

(Mandatory Riders)
Medicare Part A Deductible: $385.50
Medicare Part B Deductible: $189
Part B Excess Charges: $26.17
Non-Medicare Prevention: $86.67
w/ all 4 Riders (Avg): $2,343.84

Extended Basic (Avg): $4,738.50

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

Gerber Life Insurance Company
Basic Plan (Avg): 
$1,823.67

(Mandatory Riders)
Medicare Part A Deductible: $327.50
Medicare Part B Deductible: $162
Part B Excess Charges: $49.50
Non-Medicare Prevention: $75.33
w/ all 4 Riders (Avg): $2,438

Extended Basic (Avg): $4,664.67

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

Government Personnel Mutual
Basic Plan (Avg):
 $1,846.25

(Mandatory Riders)
Medicare Part A Deductible: $310.25
Medicare Part B Deductible: $162
Part B Excess Charges: $55.75
Non-Medicare Prevention: $76.75
w/ all 4 Riders (Avg): $2,451

Extended Basic (Avg): $4,764

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N (Avg): $1,774.75

Humana Insurance Company
Basic Plan (Avg):
 $1,912

(Mandatory Riders)
Medicare Part A Deductible: $630
Medicare Part B Deductible: $168
Part B Excess Charges: $66
Non-Medicare Prevention: $114
w/ all 4 Riders (Avg): $2,890

Extended Basic (Avg): $3,850

Plan F (Avg): $1,413.17
Plan K (Avg): $1,364
Plan L (Avg): $1,904
Plan M: N/A
Plan N: N/A

Loyal American Life Insurance Company
Basic Plan (Avg): 
$1,908.75

(Mandatory Riders)
Medicare Part A Deductible: $437
Medicare Part B Deductible: $162
Part B Excess Charges: $57
Non-Medicare Prevention: $70.75
w/ all 4 Riders (Avg): $2,635.50

Extended Basic (Avg): $2,629

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N (Avg): $2,200.75

Minnesota Comprehensive Health Association
Basic Plan (Avg):
 $2,558

(Mandatory Riders)
Medicare Part A Deductible: $499
Medicare Part B Deductible: $140
Part B Excess Charges: $2.50
Non-Medicare Prevention: $34
w/ all 4 Riders (Avg): $3,233.50

Extended Basic: N/A

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

Royal Neighbors of America

Basic Plan (Avg): $1,855.50

(Mandatory Riders)
Medicare Part A Deductible: $462.50
Medicare Part B Deductible: $140
Part B Excess Charges: $72.50
Non-Medicare Prevention: $56.25
w/ all 4 Riders (Avg): $2,586.75

Extended Basic (Avg): $4,449

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

Sanford Health Plan of MN
Basic Plan (Avg):
 $1,924.50

(Mandatory Riders)
Medicare Part A Deductible: $506
Medicare Part B Deductible: $160
Part B Excess Charges:  $58.50
Non-Medicare Prevention: $103.50
w/ all 4 Riders (Avg): $2,752.50

Extended Basic (Avg): $5,772.50

Plan F (Avg): $1,244.50
Plan K: N/A
Plan L: N/A
Plan M (Avg): $1,771.50
Plan N (Avg): $2,201

State Farm Mutual
Basic Plan (Avg):
 $1,717

(Mandatory Riders)
Medicare Part A Deductible: $463
Medicare Part B Deductible: $170
Part B Excess Charges: $21.50
Non-Medicare Prevention: $44
w/ all 4 Riders (Avg): $2,415.50

Extended Basic (Avg): $4,679.83

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M (Avg): $1,577.50
Plan N: N/A

State Mutual Insurance Company
Basic Plan (Avg): 
$2,331.25

(Mandatory Riders)
Medicare Part A Deductible: $576.75
Medicare Part B Deductible: $155
Part B Excess Charges: $94.25
Non-Medicare Prevention: $79.50
w/ all 4 Riders (Avg): $3,236.75

Extended Basic (Avg): $5,592

Plan F (Avg): $1,133.25
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N (Avg): $2,299.50

Sterling Life Insurance Company
Basic Plan (Avg): 
$1,626.25

(Mandatory Riders)
Medicare Part A Deductible: $387
Medicare Part B Deductible: $131
Part B Excess Charges: $21
Non-Medicare Prevention: $56
w/ all 4 Riders (Avg): $2,221.25

Extended Basic (Avg): $2,376.25

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N (Avg): $1,533

Thrivent Financial for Lutherans
Basic Plan (Avg): 
$1,953.25

(Mandatory Riders)
Medicare Part A Deductible: $552.50
Medicare Part B Deductible: $140
Part B Excess Charges: $107
Non-Medicare Prevention: $76.25
w/ all 4 Riders (Avg): $2,829

Extended Basic (Avg): $4,491.75

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

United HealthCare AARP
Basic Plan (Avg): 
$1,710.50

(Mandatory Riders)
Medicare Part A Deductible: $375
Medicare Part B Deductible: $189
Part B Excess Charges: $79
Non-Medicare Prevention: $66.50
w/ all 4 Riders (Avg): $2,420

Extended Basic (Avg): $2,356.50

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M: N/A
Plan N: N/A

United World Life IC
Basic Plan (Avg): 
$1,809

(Mandatory Riders)
Medicare Part A Deductible: $358
Medicare Part B Deductible: $155
Part B Excess Charges: $0
Non-Medicare Prevention: $79.50
w/ all 4 Riders (Avg): $2,401.50

Extended Basic (Avg): $4,679.83

Plan F: N/A
Plan K: N/A
Plan L: N/A
Plan M (Avg): $1,577.50
Plan N: N/A

Closing Facts

According to the data above, only 1 of the 18 Medigap insurance companies does not offer the Extended Basic Plan.

All insurance companies will charge a higher premium if the enrollee is a tobacco-user. In addition, most supplemental insurance companies charge more or less depending on whether or not the enrollee is living in an urban or rural residence. The following 6 insurance providers however, do not differentiate between urban or rural living areas:

  • Blue Cross & Blue Shield
  • Colonial Penn
  • Continental Life of Brentwood Tennessee
  • Minnesota Comprehensive Health Association
  • Sanford Health Plan of MN
  • United HealthCare AARP

Medicare supplement insurance providers that offer NAIC’s standardized plans are as follows:

5 of the insurance companies offer the high deductible Plan F

  • Colonial Penn
  • Continental Life of Brentwood Tennessee
  • Humana Insurance Company
  • Sanford Health Plan of MN
  • State Mutual Insurance Company

3 companies offer Plans K & L

  • Blue Cross & Blue Shield
  • Colonial Penn
  • Humana Insurance Company

4 companies offer Plan M

  • Colonial Penn
  • Sanford Health Plan of MN
  • State Farm Mutual
  • United World Life IC

7 companies offer Plan N

  • Colonial Penn
  • Continental Life of Brentwood Tennessee
  • Government Personnel Mutual
  • Loyal American Life Insurance Company
  • Sanford Health Plan of MN
  • State Mutual Insurance Company
  • Sterling Life Insurance Company

Most cost-effective Extended Plans

Even with all 4-riders, the Basic Plan does not provide as much coverage as the Extended Basic Plan. Furthermore, the following 3 companies offer cheaper Medigap Extended Plans than a Basic Plan with all 4 mandatory riders.

  • Colonial Penn
  • Loyal American Life Insurance Company
  • United Healthcare AARP

The top 3 companies with the lowest annual cost for a Basic Plan are:

  • Continental Life of Brentwood Tennessee – Basic Plan $1,454
  • Sterling Life Insurance Company – Basic Plan $1,626.25
  • Family Life – Basic Plan $1,656.50

The top 3 providers with the lowest annual cost for an Extended Basic Plan are:

  • United HealthCare AARP – Extended Basic $2,356.50
  • Sterling Life Insurance Company – Extended Basic $2,376.25
  • Loyal American Life Insurance Company – Extended Basic $2,629

The supplemental insurance carrier that offers the most variety is Colonial Penn given that it provides all the forms of coverage allowed in Minnesota.

Sources:

http://www.health.state.mn.us/divs/hpsc/hep/publications/coverage/medsupp.pdf

http://mn.gov/commerce/insurance/images/PremiumGuide_MedicareSupplement_Medigap_9_12.pdf

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDcQFjAB&url=http%3A%2F%2Fwww.ahip.org%2FMedigap-2012.aspx&ei=hFKWUfmcGeahiQK0voHIDA&usg=AFQjCNHfUIMTFKFc40qUkvvWtL6V7C48PQ&bvm=bv.46751780,d.cGE

http://www.cms.gov/Medicare-Medicaid-Coordination/Medicare-and-Medicaid-Coordination/Medicare-Medicaid-Coordination-Office/Downloads/MinnesotaProposal.pdf

http://www.q1medicare.com/PartD-2012MedicarePartD-StatisticsTextprint.php?crit=MN

http://medicare.gov

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  • Disclosure: We are not connected with or endorsed by the U.S. Government or the federal Medicare program. Medicare has neither reviewed nor endorsed the information contained on this website. Disclamer: This is not a complete listing of plans available in your service area. For a complete listing please contact 1-800-MEDICARE or consult www.medicare.gov (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov.