Best Health Insurance Companies for Retirees

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Why We Chose It: We chose Aetna as our best overall health insurance for retirees because of its reputation, extensive network, range of coverage options, and impressive benefits, such as acupuncture and chiropractic therapies.

Aetna is one of the largest providers of Medicare Advantage Plans. These plans are alternatives to Original Medicare that offer additional benefits such as dental, hearing, and vision care. 

Aetna’s offerings consistently rank highly in The Centers for Medicare & Medicaid Services (CMS) annual star ratings. Aetna offers some of the lowest cost but highest quality insurance plans for retirees, making them our top pick overall.

Aetna began its long history as an insurance provider in 1853. CVS Health acquired Aetna in 2018, and they now serve around 39 million people with a range of health, prescription drug, and dental insurance plans.

Their financial strength is rated A (Excellent) by AM Best.

As with other Medicare plans, Aetna’s Medicare Advantage Plans’ benefits don’t max out and are guaranteed renewable. There is typically no upper dollar limit for covered services that are medically necessary. However, there may be coverage limits for some benefits, such as for hospital stays.

There are many Medicare Advantage plans to choose from, including the Aetna Medicare Plus Plan, with a $0 monthly premium, $0 deductible, and a maximum out-of-pocket of $999 per year. In common with all Medicare Advantage plans, you will also have to pay any Medicare Part A and Part B premiums. 

There are also Medicaid, Medigap, dental, and vision plans.

If you enroll in Medicare during the General Enrollment Period from January 1 through March 31, your coverage will begin on July 1.

Depending on the plan and your location, Aetna plans have a wide range of benefits beyond Original Medicare. These include:

• Dental, vision, and hearing care
• Alternative therapies including acupuncture and chiropractic care
• Fitness benefits through the Silver Sneakers fitness program
• Over-the-counter benefits for non-prescription drugs and health products
• Prescription delivery service
• 24-hour nurse hotline
• Annual flu shots at no charge
• Meals-at-home program following a hospital stay
• Resources for living program for help at home, caregiver support, and social support

Medicare Advantage plans, including Aetna plans, only cover medically necessary services. They do not exclude pre-existing conditions but will not cover alternative therapies, custodial care, personal care, and non-medical services.

Providing you qualify for Medicare, you can enroll in an Aetna Medicare Advantage Plan. You may find that these plans offer a more comprehensive health insurance option than Original Medicare, owing to the additional covered services.

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Why We Chose It: Medicaid is our top choice for low-income seniors because it’s a federal government program providing low or zero-cost access to health care.

The federal government and individual states partner to provide the Medicaid program. It’s our top pick for retirees on a low-income as it offers comprehensive health coverage for little or no cost.

Medicaid helps pay eligible people to pay for their Medicare premiums and contributes toward out-of-pocket healthcare expenses, like deductibles and copayments. A significant advantage of Medicaid is that it extends coverage beyond Medicare. This cover can include prescription drugs, hearing aids, case management, and physical therapy, and there are no exclusions for pre-existing conditions.

Typically, Medicaid coverage begins immediately when an application is approved, has no premiums, and the benefits continue as long as you’re eligible with no maximum ceiling. 

People, including children, parents, pregnant women, seniors, and people with disabilities, can apply for Medicaid assistance. The federal government guidelines for eligibility and benefits are broad and allow individual states a great deal of flexibility in designing and administering their Medicaid programs. As a result, Medicaid qualifying criteria vary widely depending on location, although all use income calculations. 

Your income must be less than 138% of the federal poverty level to qualify for Medicaid if you live in a state with expanded Medicaid coverage. If your state has not expanded Medicaid, non-disabled adults without minor children cannot receive Medicaid benefits regardless of income level.

If you think you may qualify for Medicaid, contact your state Medicaid agency to request an application.

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Why We Chose It: Humana earns our best for prescription coverage ranking with some of the most economical plans on the market, combined with a first-rate reputation, CMS rating, and user-friendly website.

Humana is a popular and well-known provider with an A- (Excellent) rating from AM Best. Their solid reputation, combined with low-priced plans, made them our top choice for prescription coverage.

Original Medicare does not cover prescription drugs. If you want coverage, you’ll have to buy a standalone Medicare Part D plan, or instead opt for a Medicare Advantage plan that includes Part D. If you qualify for Original Medicare, you can purchase a Part D or Advantage plan. Humana provides both options for people living across the United States. 

Aside from individual and employer health insurance, Medigap, Medicaid, Medicare Advantage plans, dental, and vision policies, Humana offers three Part D plans you can purchase online. 

The most economical policy is the Humana Walmart Value Rx Plan, with a monthly premium of $17.20. Drug plans use a formulary to divide medication into cost tiers. On this plan, tier 1 and 2 drugs cost a $0 or $1 copay and have a $0 yearly deductible. Drugs on tiers 3, 4, and 5 have a $445 annual deductible. 

The Premium Rx Plan has a monthly premium of between $58.30 and $72.50, while the Humana Basic Rx Plan premium is between $19.70 and $45. 

You can enroll in a Part D plan during specific periods, and you’ll have to wait up to three months for coverage to begin. After you’ve paid the deductible, plans cover up to $4,130; then you enter the coverage gap. 

The website is simple to use. You can easily find out if your current prescription medicines are covered in the plan’s formulary and what they’ll cost, so choosing the right plan is straightforward.

Humana has a wide network of pharmacies nationwide. You may find even lower prescription prices if you use one of the preferred cost-sharing partners, including Walmart, Publix, Kroger, and Costco pharmacies.

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Why We Chose It: We chose United Healthcare for our best short-term coverage pick as they are the only provider that extends coverage to 36 months, plus they have one of the largest provider networks in the United States.

United Healthcare sells short-term health insurance policies underwritten by the Golden Rule Insurance Company. These policies are designed to cover transitional periods, for example, leaving work and qualifying for Medicare, and typically span from 3 to 12 months. However, their TriTerm insurance can cover up to three years. When combined with reasonable policy prices, United Healthcare was an obvious top pick for short-term coverage.

Other policy offerings include individual and employer health insurance, Medigap, Medicaid, Medicare Advantage plans, dental, vision, and prescription drug plans. 

United Healthcare has a long history of providing short-term health policies, and AM Best awards them an A rating for their financial stability.

The website has an online quotation system, and it’s easy to compare the different policies for your zip code. The system also shows you options for add-ons like vision and dental plans. People can enroll up to the age of 65.

Their Short-Term Medical Direct plans have a large range of premiums depending on which deductible you choose from $2,500 to $15,000. Lifetime maximum benefits are $500,000 for plans lasting 1–12 months. Waiting times may be as short as the day following approval.

Short-term health insurance is not compliant with the Affordable Care Act (ACA), so it may not cover pre-existing conditions or include many benefits. However, United Healthcare plans are flexible and have numerous options and add-ons so people can tailor their coverage for their specific needs.

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Why We Chose It: Our top supplemental insurance pick is Cigna because they offer a wide range of plans for different budgets, including various options to cover cancer treatments, heart attacks, and strokes.

Founded in 1792, Cigna is one of the oldest providers in the United States and has an A rating for financial strength from AM Best.

Cigna is an obvious choice for our supplemental insurance top-pick with their plans that include A, C, D, F, High-Deductible F, G, and N, plus non-standard options. Their portfolio also includes individual and employer health insurance, dental, and vision policies, plus Medigap, Medicaid, Medicare Advantage, and prescription drug plans. 

If you have Original Medicare coverage, you’ll be left with some out-of-pocket expenses like deductibles, coinsurance, and copayments. Supplemental insurance, or Medigap policy, helps you pay some of these costs.

Cigna’s plans do not require you to use an in-network provider, so you have the flexibility of using any healthcare provider who accepts Medicare. Additional perks include cover for foreign travel and access to Cigna Healthy Rewards. This free program offers savings on weight management, wellness products, and programs.

Policies differ considerably in cost. The maximum out-of-pocket is often around $5,000. You can find quotes for your location through their online portal.

In common with other Medicare-related plans, you must enroll during specified periods and may wait up to three months for coverage. Plans are guaranteed renewable, don’t exclude pre-existing conditions but don't cover long-term, vision, dental, or hearing care.

You may save money even with an additional premium to pay each month, plus you have the peace of mind knowing that any unexpected costs will be limited.