Aflac Medicare Supplement Review: Everything to know about Aflac’s Supplemental Policy
Aflac’s experience, consumer success rate, stability, and flexible policies may be worth considering if you’re searching for supplemental insurance to Medicare. Aflac started offering its Medicare Supplement Insurance products to fill some of the Medicare coverage gaps since consumers needed a solution to help manage costs during retirement. The Medicare Supplement plans A, F, G, and N from Aflac give customers the freedom to seek medical attention from any Medicare-accepting provider in a convenient location that best suits their needs without requiring any preauthorization. The plan’s benefits are portable and consistent year after year, so if policyholders move or travel, their coverage follows them.
There is a sizeable list composing Aflac benefits; advisors in the insurance industry mostly have good things to say about the business.
Aflac Company Backstory
The insurance industry holds very high regard for Aflac Life Insurance, and for all the right reasons. You can miss their brand name, but you can’t escape their especially peculiar trademark, a strange white duck, from the well-known TV ad.
However, the well-known TV mascot is not the only reason behind their listing in Fortune 500 companies. By offering high-quality insurance products, they have solidified their position as one of the most recognizable companies in the supplemental life insurance industry.
American Family Life Assurance Company, or Aflac, was founded in 1955 and operated out of its Columbus, Georgia, headquarters, offering fundamental life insurance. Aflac advanced with the launch of its first cancer policies in 1958. Now Aflac is one of the newest carriers to offer Medicare policies in the nation.
For more than 65 years, Aflac has aided individuals by supplying peace of mind and money. It was their commitment to service that has helped them establish long-lasting client relationships.
Aflac now offers various life and supplemental health insurance plans. Today they have an expanded customer base of over 50 million spread across the world. Feel free to contact Medicare Nationwide’s certified insurance agent for more information on Aflac and its products.
Supplemental Insurance Coverage
Medicare Supplement insurance isn’t all-inclusive; it’s intended to function in conjunction with Original Medicare (Part A and B) and fill in any gaps. You have hassle-free coverage for Medicare-approved claims, providing you with a cushion to deal with any potential financial hardships brought on by an unplanned hospital stay, illness, or accident. Whatever expenses exceed the Medicare coverage is further covered (up to a certain percentage) by Medicare Supplement Plans, e.g., that percentage for Plan G is 100%, excluding the Part B deductible.
Let’s break this down for better understanding. Medicare is your primary insurance, so in a situation requiring a certain healthcare expense, the source that gets paid is the medical provider for services rendered. They first receive payment of the claim from Medicare as the primary and the remaining amount from the secondary insurance carrier.
Some Medigap plans additionally provide coverage for things that Original Medicare does not, such as overseas medical treatment.
However, there are certain limitations to Medigap or Medicare Supplement coverage. For example, Long-term care (such as care received in a nursing home), vision or dental care, hearing aids, eyeglasses, or private-duty nursing are typically not covered by Medigap. Because they are not covered by Medicare as the primary insurance.
Aflac is relatively new to supplemental insurance, but its commitment to supplement insurance products looks promising. They also offer additional stand-alone insurance policies like supplemental dental and vision insurance.
What does a Medicare Supplement cover?
A suitable plan must be chosen when it comes to Medicare Supplement insurance. Aflac has a number of plans that assist in closing some of the Medicare coverage gaps.
As discussed above, Original Medicare covers most but not all of the cost of approved medical services and supplies. Significant payments like copayments, coinsurance, and deductibles for approved treatments and supplies can be partially paid by Medicare Supplement Insurance (Medigap) plans offered by private firms like Aflac. Now, what do we mean by copayments, coinsurance, and deductibles? Let’s understand:
- Coinsurance is a percentage you owe after the deductible, in this case, 20% for Part B and Part A has their own charges. See our Part A and Part B costs chart: What is Medicare Part A and What is Medicare Part B?
- Copayments are fixed payments you make to your medical service provider when you receive their services. E.g., you pay $20 for an office visit.
- Deductible- A deductible is an amount you have to pay for health care before any of your Medicare/ Advantage/ Prescription/ other insurance plans begin their coverage.
Medigap policies are federally standardized.
In addition to explicitly identifying their coverage details, Medigap must abide by federal and state rules to safeguard you. Insurance firms can only offer “standardized” plans, known in most states as plans A–D, F–G, and K–N. All plans provide the same fundamental coverage, but some plans, like Plan G and N, are more popular because they offer more coverage for Medicare-approved expenses.
Thrive in Good Health with well-managed Medicare Expenses
Covering the Uncovered.
Medicare presents favorable coverage for medical costs, but it does not cover all medical costs. There are some Medicare coverage gaps that you must fill out of pocket or through private insurance. A private insurance firm like Aflac will offer supplemental health insurance coverage known as a Medicare supplement plan, often known as Medigap, to help close some of those gaps for Part A and Part B. Here is our Part A and Part B chart.
An example would be Part A has a deductible for hospital care, and Medicare supplement plans, like Plan G and N, would cover that deductible. Part B only covers 80% of Medicare-approved services; Plan G and N would cover 20% up to the Medicare-approved rate. Combining Medicare and a Medicare supplement plan ensures that your Medicare-approved expenses are covered nearly 100%. Choosing a Medicare supplement plan like Plan G will cover copayments that Plan N would not, so you can find a supplement plan that gets you closer to 100% covered for out-of-pocket medical expenses.
Self-care is important.
You may manage and budget your healthcare costs more predictably and steadily with the aid of Aflac’s Medicare Supplement plan. A Medigap policy works with Medicare to extend your coverage and helps cover part of your added expenses for services that are accepted by Medicare. You don’t have to look twice at your bank balance before getting yourself the professional medical attention that you’ve been thinking about for quite some time.
Have confidence in your medical decisions.
There are no limiting networks with a Medicare Supplement plan. You can go to any healthcare facility of your choice that accepts Medicare recipients, including general practitioners, specialists, and hospitals. Once the provider or the Medicare recipient file a claim with Medicare, the secondary insurance carrier will automatically send the remaining about to the provider. That is called automatic claims filing.
Experience the freedom to choose the best-suited specialists for your every medical need.
Explore your alternatives.
Medicare Supplement insurance plans are strictly standardized at the federal level but all insurance is regulated by state governments. That is why Medicare supplement prices and eligibility periods differ from state to state. However, the plans are federally standardized to offer the same coverage, no matter what state you live in.
At Medicare Nationwide, we help you become more familiar with your coverage details and what plan is suitable for you. We can help you every step of the way in making your Medicare decision, free of cost.
Medigap Plans by Aflac
With varying levels of coverage, Aflac presents Medicare Supplement Plans A, F, G, and N. Plan A offers basic benefits, while Plan F offers more extensive protection. Additionally, premiums differ based on the scope of coverage that each plan provides. We provide a summary of coverage to compare the different plans. Also, you can read our article on the differences between Medicare Supplement plans here: Medicare Supplement Plans Comparison. Eligible applicants may get a household premium discount.
The advantages offered by each plan are as follows:
Medigap Plan A
Certain out-of-pocket payment related to Medicare Part A and Part B coverage is covered by Medigap Plan A. The very “basics” of Medigap plans, or the benefits that each Medigap plan provides, are included in Medigap Plan A. Despite the fact that Plan A has cheaper premiums than other Medigap options, we don’t recommend this due to its poor price-to-coverage ratio.
Aflac Medicare Supplement Plan A covers the following:
- Basic Medicare Benefits
- Hospice Care
- Part B Coinsurance
Medigap Plan F
In comparison to all other Medicare supplement plans, Aflac’s Medigap Plan F provides the most comprehensive Medicare insurance coverage (though there’s a close resemblance to Plan G coverage). Plan F is typically the most expensive option because it takes care of the majority of Original Medicare Part A and Part B’s remaining costs. Clients under this plan are only required to make extremely small out-of-pocket costs. The keynote to remember here is that Plan F has been discontinued as of January 1st, 2020. It is no longer available to new Medicare enrollees. However, it is accessible to the ones who are grandfathered in.
In addition to the expenses covered by Original Medicare Part A, Plan F offers the following advantages:
- Hospice Care
- Part B Coinsurance
- Part B Excess Charges.
- Part A Deductible
- Part B Deductible.
- Skilled Nursing Facility Care Coinsurance
- Foreign Travel Emergency Care (up to plan limit).
*Excess charges – under traditional Medicare, doctors are allowed to charge an extra 15% to the patient beyond the portion that Medicare reimburses. Plan F will pick up any of that extra 15% charge.
Medigap Plan G
Medicare Supplement Plan G provides coverage for everything that Plan F pays for, with one exception. Policyholders with plan G are responsible for paying their Part B deductible. Plan G typically has a much lower premium than Plan F. You save more by switching to Plan G even if you adopt paying the Part B deductible.
Medigap Plan N
One of the most pocket-friendly Medicare supplement plans with an appropriate amount of coverage is Medigap Plan N. Plan F covers the substantial Part A deductible, the 20% coinsurance for Part B, foreign emergency travel, and other Part A and Part B-related expenses, except the copayments and excess charges (in certain states). Making it an excellent choice for customers searching for low-cost coverage. Simply put, it is exactly like Plan G, except it does not cover Part B excess charges and copayments. Again, copayments are fixed dollar amounts for office visits, and excess charges are up to 15% above the Medicare-approved rate.
Exclusions to Medicare Supplement Plans
- Loss sustained while your policy is not in effect, with the exception of what is stated in the Extension of Benefits section of your policy.
- Hospital or skilled nursing facility confinement sustained during a Medicare Part A benefit period that commences while the policy is not in force.
- Services for non-Medicare qualifying charges, such as routine physicals, prescription drugs, and refractive eye tests.
- The Services are often free in the absence of insurance.
- Losses covered by another insurance that provided compensation for the same loss based on actual out-of-pocket costs.
Other Aspects of Supplemental Health Insurance by Aflac
Aflac has dominated the American worksite market for cancer and additional medical insurance for more than 60 years. They are known for taking good care of Aflac policyholders affected by various medical or financial calamities. The American insurance company provides a variety of supplemental insurance products, including
- Accident Insurance
- Whole Life Insurance
- Term Life Insurance
- Cancer Insurance
- Dental and Vision Insurance
- Critical Illness Insurance.
As a leading supplemental insurance provider, American Family Life Assurance Company has a strong financial standing. The company’s recent rating is A+ by the Better Business Bureau and A+ (Superior) by A.M Best as of 2022. Aflac was ranked 126th in the Fortune 500 in 2017. Additionally, they were listed as the 91st best company by Fortune.
Important Terms You Need To Know
It implies that as long as you continue to pay your premiums when they become due or during the grace period, the policy will be assured to renew for as long as you live. Your issue age determines your premiums. Any premium adjustments will take effect on the policy anniversary date. Aflac retains the power to modify premiums, but only for a particular class of plans. The key aspect of these modifications is that Medicare supplement plans can only be rate-adjusted for the entire group, you can’t raise the rate because of someone’s health. However, if you are applying for the plan and are subject to underwriting, you may have to pay a higher rate to be approved.
The Premium grace period is a window of time after the premium payment deadline (often 31 days) during which a policyholder may still pay their premium without losing their coverage. If you were unable to secure the required premium funds due to economic duress, the grace period starting is a blessing in disguise for you.
Skilled Nursing Facility
In a skilled nursing facility, Medicare will pay for semi-private rooms, food, skilled nursing and therapy services, and other medically necessary services and supplies.
Medicare only pays for these services after a minimum of three days of medically required inpatient hospitalization (excluding the day you are discharged) for an illness or injury connected to the hospitalization. If your doctor participates in an Accountable Care Organization or another type of Medicare project approved for a Skilled Nursing Facility 3-Day Rule Waiver, you might not need a 3-day minimum inpatient hospital stay. You don’t have to pay anything for the first 20 days of each benefit period (if you have a Medicare Advantage plan, you would have to pay copayments during the first 20 days). You have to pay a coinsurance daily for days 21-100 of each benefit period and the full amount after 100 days in a benefit period.
How To Choose The Perfect Medigap Plan?
Most of the time, choosing a Medicare supplement plan is difficult. Every customer has different demands and expectations from Medigap plans. The most important factor to take into account when comparing supplement insurance plans is what carrier you would be entrusting.
Here are a few pointers for you to consider:
Rating of the Company
Medicare Supplement Companies are rated by 2 of the most trusted rating agencies which are A.M. Best and Standard & Poor’s (S&P) and are given letter grades A through F. These letters describe the results drawn from a detailed analysis of claims loss ratio, customer service, and overall stability.
Company’s Medigap Experience
Even though many businesses were founded in the early to mid-1900s, they may have only sold supplements in a particular region for two years or less. We never advise choosing a business that has only been operating locally for five years. This period of time, in our opinion, is adequate for the company to gather a representative sample size, assess the impact of the company’s claims loss ratio on future rates, and allow those premiums to stabilize.
History of Average Rate Increase
It should be the most significant element in your choice of plan, and the company should be weighted heavily. Once more, we observe that rate hikes are generally higher for newer businesses than those based there for more than 20 years. Companies may experience rate increases of up to 20% annually. As per our experience, the company with a high overall rating seems more stable.
There is a lot to take in, but the right approach can help you simplify the whole process.
For more insights into choosing the perfect Medigap plan, you can look at our detailed comparison guide: https://medicarenationwide.com/how-to-choose-the-right-medicare-supplement/
Compare Medicare Supplement Policies and Carriers with Medicare Nationwide
Get in touch with the Insurance Advisors
In terms of your need for a Medicare supplement, we think American Family Life Assurance Company, is a good and reliable insurance company. Overall stable pricing and reliable customer service are available to you. Health care is no small investment, it might be tricky to piece together, but with us, there’s always help available to you.
Please get in touch with us if you want to get more information about Aflac as your ideal Medicare Supplement provider or to examine their rates. Our agent will prioritize your wishes, needs, and resources over anything else when recommending Medicare plans.
Whether you are one of the existing policyholders or you are exploring the insurance industry for the first time, you can always count on our agent for the best guidance. It is free to work with us, so why navigate this all on your own?
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Contact us at 1-888-559-0103