Is Humana Medicare Supplement Insurance Worth It?

Who is Humana?

Humana is now the 3rd largest health insurance carrier in the U.S. based out of Louisville KY. 

Humana was founded in 1961 by David A Jones, Sr. Originally Humana began as a nursing home facility called Extendicare, but the name was changed to Humana in a short couple of years.

In the 80s, Humana joined the health insurance industry and by the 1990s they had completely left the nursing facility industry. By 1993, Humana became one of the largest hospital operators in the country, owning 77 hospitals. Eventually, they spun off hospital operations to another entity and sold the hospitals to Nashville-based Columbia HCA.

Today the company is well-known for its medical insurance policies along with Medicare Supplement plans, Medicare Advantage, Part D coverage along with dental and vision coverage. In the late 90s, United Healthcare made an unsuccessful attempt to acquire Humana, but Humana pulled out of the acquisition. 

In July 2015, Aetna announced they would acquire Humana, but the merger was blocked by the federal government. In 2018, they partially acquired Kindred Healthcare owning a 40% stake in the company’s home health, hospice, and community care businesses.

Humana Market Share

Within the health insurance industry, Humana maintains a 5.1% market share with over $56 Billion in total premiums. Around 82% of their premium revenue comes from Medicare members. This fact shows its commitment to the senior Medicare industry with constant innovation in technology and customer service.

Focusing solely on their Medicare Supplement plans, they have over 300,000 members who are enrolled in one of their Medigap plans.

Humana Corporate Affairs

Humana is involved in many sponsorship and charitable activities. The company is a consistent sponsor of the PGA and LPGA tours, and the official health benefit provider of the PGA Tour and the Champion Tours. Because of its location in Louisville, KY, Humana is a regular sponsor of the horse racing industry such as sponsoring a race during the Kentucky Derby.

Humana also sponsors the Grand Ole Opry and is the principal sponsor of Louisville’s annual Festival of New American Plays. In 1992, Humana founded the Humana Military Healthcare Services and began military benefits in 1996.  They have continually worked with the military and the department of defense up till today.

Humana Geographical Footprint

Humana has a national footprint and can be found in most states. Not every one of its supplement insurance plans is available in every state.

Company Ratings

The Better Business Bureau gives Humana a rating of A+.

Financial rating companies like AM Best rates Humana an A- for financial strength and stability.

Standard & Poor’s has given them a credit rating of BBB+.

Moody’s Investors Services gave them a rating of Baa3.

Fitch Ratings gave him Humana a BBB.

All these are excellent ratings and point to strong financial stability for Humana.

Humana Customer Satisfaction Ratings

One of the key indicators of a great company is customer satisfaction. One of the groups that track complaints against insurance companies is the National Association of Insurance Commissioners.  The NAIC keeps a complaint index and a score of less than one means the company has received fewer than expected complaints.

No company can satisfy everyone all the time, but it is helpful to know if they receive more than average.

In the most recent compiled data from 2019, they received a 1.00 which suggests average complaints. But what is more amazing is that in 2017 & 2018 their Medicare Supplement unit had no complaints and only 1 in 2019. That’s pretty remarkable considering they have over 300,000 policyholders.

J.D. Power, the national company that measures customer satisfaction, ranked Humana as third overall for their Medicare products. They scored 806 points out of 1000.

Here are a couple of reviews from Humana’s customers:

John of Indianapolis, IN

“I am very satisfied with of policy from Humana. I have been in and out of the hospital over the last few years and have not paid a dime out of pocket. Also when I go to my doctor there is no co-pay. I understand that my policy is a little pricey but for the peace of mind it is worth it.”

Jim of Plant City, FL

“Humana has always been fair in charges for any medical services needed. Never been denied coverage for any service. Claims are easy to understand and very detailed. Annual fees are excellent. Highly recommended Humana to anyone seeking quality care and support.”

What Medicare Plans Does Humana Offer?

In addition to Medicare Supplement products, Humana also offers Medicare Advantage plans, Prescription Drug plans, and dental and vision plans.

Let’s look at the details of their Medicare supplement plans.

Medicare Supplement plans are designed to pick up out-of-pocket coverages that are not covered by Medicare. The easiest way to understand Medicare Supplements is to know the basics of Medicare Part A and Part B.

Medicare Has 4 Major Parts

There are 4 major parts to Medicare: Parts A, B, C, & D.

• Medicare Part A. Part A covers inpatient care in a hospital, skilled nursing facility care, nursing home care, hospice care, and home health.
• Medicare Part B. Part B includes preventative services on top of normal medical services. Another way to think of B is coverage for doctors and specialist visits. Clinical research, ambulance services, durable medical equipment, mental health services, and outpatient prescription drugs. These services will also be available at no cost if Part B recipients get care from a provider that accepts assignment.

When many people speak about Original Medicare, they are referring to Parts A & B. Part C is the Medicare Advantage plan and like Medicare supplements, it is designed to cover out-of-pocket expenses not covered under A & B. We have written several articles on the pros and cons of Medicare Advantage plans. Humana provides Medicare Advantage plans as well as Supplements, however, Advantage plans have greater geographical limitations and may not be available in your area.

Part D is Medicare’s prescription drug coverage. Unlike A & B, Medicare only regulates Part D, the coverage is provided through private insurance companies. Humana also has Part D plans as well.

Supplement Plans Also Known as Medigap

Medicare Supplement plans are commonly known as Medigap policies. These plans were created by the federal government to pick up expenses Original Medicare does not cover. These policies are tightly regulated by the government and coverages are identical for every private insurance company that administers and sells the plans.

Here are the basic plans that Humana offers across the country. It is important to remember that each company like Humana does not have the same plans in every state. There are even several outlier states that have their own structure of Medicare Supplement plans (Massachusetts, Minnesota, Wisconsin).

Humana offers Medicare Supplement policies for 11 of the 12 standardized plans A, B, C, D, F, G, K, L, and N.

Medicare Supplement Plans A & B

All Supplement Plans are built on the base of Plans A & B. These are basic plans that provide some out-of-pocket expenses but will not cover as much as the more comprehensive plans like F, G, & N.

Plan A will cover the Part A coinsurance and Part B copayments and preventative care coinsurance. Plan B picks up the Medicare Part A hospital deductible. 

Humana Medicare Supplement Plan F

Supplement Plan F has been Humana’s most popular plan because of the comprehensive coverage it offers. It has gone through many changes due to government regulations. Today, it is only available to seniors who entered Medicare prior to 2020.

You can still access this supplement product if you have been in the Medicare system prior to 2020. If you have a Plan F today, it is often worth it to evaluate not only the plan but the company. You may find a more affordable option or even a plan that offers more coverage than you have today. You are not locked in to what you may have.

Plan F covers:

• Part A deductible
• Part B deductible
• Part B excess charges
• Preventative care Part B co-insurance
• Part A hospital and co-insurance costs up to an additional 356 days after Medicare benefits are exhausted
• Part B co-insurance or co-payment
• First three pints of blood used in an approved medical procedure (annually)
• Part A hospice care co-payment or co-insurance
• Skilled Nursing Facility (SNF) co-insurance
• Foreign travel emergency

For those eligible for Plan F, there are also high-deductible plans that offer lower premiums for healthy seniors with low medical expenses.

Humana Medicare Supplement Plan G

Supplement Plan G is Human’s most popular product. Just like F, there is a High Deductible plan available as well. Recipients of Supplement Plan G will receive coverage for:

• Medicare Part A coinsurance and hospital costs for an extra 365 days
• Part B copays or coinsurance
• Three pints of blood
• Part A hospice copay or coinsurance
• Skilled nursing care
• Part A deductible
• Part B excess charges
• Finally, 80% of foreign emergency costs

The only main benefit missing from this list compared to Plan F is the Part B deductible.

Paying the Part B deductible may seem like a significant loss between F & G. The benefit of choosing Plan G is that the premium savings may be significant enough that you save that deductible cost.

Humana Medicare Supplement Plan N

Next to Supplement Plan G, N is Humana’s most popular plan. It has a lower premium than Plan G, which makes it attractive.

There are some coverages that are missing in Plan N that G has. It’s good to understand these coverages because you may be willing to miss the coverages if the cost savings are enough.

You do have copays with N you don’t have with G. The $20 doctor copay along with the $50 emergency copay is required.

Part B excess charges are not covered as well.  Excess charges are additional charges that you may have to pay if Medicare does not cover all of the charges. Charges depend on who your provider is and how much they charge. This charge can be up to 15% of the original cost prior to Medicare.

Extra Benefits for Humana’s Medicare Supplement Insurance Plans

When it comes to coverage for Medicare Supplements, you’ve seen that all companies offer identical coverage per government regulation.

Outside of customer service, premiums, and financial stability, each company offers extra benefits to make themselves stand out between their competitors.

Each of Humana’s supplement insurance plans offers different benefits, but the following benefits are common among many of their plans:

• Memberships to fitness clubs
• Silver Sneakers Fitness program
• HumanaFirst 24-hour nurse line
• Lifeline medical alert system
• My Humana health savings program
• Well Dine meal delivery service (after hospital stays)
• Secure online health records

Based on their benefits, you can see Humana is committed to the long-term health of their policyholders. Like the SilverSneakers benefits, Humana has also created Go365 to reward members for engaging in healthy behaviors.

Humana also offers discounts for setting up automatic payments via electronic bank draft or credit card. In many states, Humana also offers a household discount on policies, if both you and your spouse have plans with Humana.

Is Humana a Good Provider of Medicare Supplement Insurance Plans?

Humana is a strong financial company with years of experience inside the Medicare industry. They provide a wide diversity of plans with competitive premiums throughout the United States.

One of the perks of Humana’s Supplement plans is you have unlimited doctor choices. You are not locked into a particular network.

You will also receive other benefits of a Medicare supplement plan such as :

• Portable Coverage – Medicare Supplements plans from Humana have coverage that will follow you anywhere in the U.S. (and in some cases, anywhere in the world), and they are accepted anywhere that also accepts Medicare.
• Guaranteed Renewable – Once you have qualified for a Humana Medicare Supplement plan, your insurability is guaranteed, even if you become ill or injured in the future. One important tip is to purchase a plan during your original Medicare window when you turn 65. By purchasing a plan during this time, you are guaranteed coverage without special underwriting rules that normally would consider pre-existing conditions and overall medical history.
• 30-Day Free Look Period – If, after purchasing a Humana Medicare Supplement, you decide that you do not want the coverage, you will have 30 days to receive a full premium refund.

Humana is a well-known stable company that has deep experience in the Medicare industry. Over the years, customers have given us positive feedback on their own use of Humana’s plans. We are confident in providing Humana Supplemental plans to our customers.

Even though we endorse Humana products, it may not be the best solution to your healthcare needs. At Medicare Nationwide, we have partnered with hundreds of national and regional companies so we can offer our customers the most coverage for the best value.

When you talk with one of our agents, let them shop your coverage with all our companies based on your own individual needs. Humana plans may be one of the best options and you can feel secure with their products.

Talk to one of our agents today and we can tailor the best products for you.

Prefer to chat by phone? Give us a call at 1-888-559-0103.