United of Omaha Medicare Supplement Review

United of Omaha Medicare Supplement

 

A Beginner’s Guide to Understanding United of Omaha Medicare Supplement 

 

The United of Omaha Life Insurance Company offers our seniors the much-needed Medigap coverage with Medicare Supplemental insurance, covering the gaps left by Original Medicare policies. United of Omaha Life was established in 1926 by The Mutual of Omaha Life Insurance Company. They have been offering a variety of insurance products, including, but not limited to, Mutual of Omaha Medicare Supplement Plans. 

As of today, the United of Omaha has the green flag to operate in Forty-nine states, Puerto Rico, the US Virgin Islands, and the District of Columbia. United of Omaha has its corporate headquarters in Omaha, Nebraska. The organization is renowned for its cutting-edge underwriting and is rated with an A+ by A.M. Best in 2022 as a testimony to its overall financial soundness and capability of meeting contractual obligations.

 

Is United of Omaha, a legitimate company? Believe it or not, we’ve heard this.

Don’t feel bad if you’ve wondered about yourself. Within the world of financial products, it is good to be cautious and ask questions. There are so many companies competing among Medicare Supplements. It can be very hard to navigate all the companies and options to find the perfect Omaha insurance company that suits your needs. 

Strong herd of Mutual of Omaha. They are a recognized brand among Medicare supplement products. They are famous for their sponsorship of Wild Kingdom. But United of Omaha, who are they? You can trust them. United of Omaha is one of many subsidiaries Mutual of Omaha owns. This is common among big insurance companies. They will often create subsidiaries for different regions to create a new group of Medicare recipients, like a fresh new group of Medicare recipients, to lower the risk of the overall group in an effort to offer lower rates to those that qualify.  

 

Company Info

United of Omaha is a long-standing and well-established subsidiary of Mutual of Omaha, based in Omaha, Nebraska. Mutual of Omaha was founded in 1909 to sell health insurance. The company was founded by a medical student and his wife. They became concerned over health costs for many of the patients they saw. This prompted them to develop health insurance products to help with hospital costs.

Over time the company has expanded into a wide variety of life and health products as well as annuities. When the federal government launched the creation of Medicare in 1965, Mutual of Omaha began selling Medicare supplement products. They were an early leader among Medicare Supplement companies and have always been at the forefront of innovation.

Mutual of Omaha launched United of Omaha in 1926. Originally the company was designed to specialize in and sell life insurance to children. First, it was known as United Benefit Life Insurance Company. The name was eventually changed to United of Omaha in 1981.

United of Omaha has expanded the number of products they sell. Today, United of Omaha is known primarily for its Medicare Supplement insurance plans. They also sell life insurance, fixed self-funded pension plans, and other insurance plans. They are known for competitive premiums, high-quality products, outstanding customer service, strong financial ratings, and fast underwriting. When you apply for Medicare Supplement products with United of Omaha, your application is approved in an average of 4 days.

 

Two Thermometers

 

Financial Ratings

Because United of Omaha is controlled and operated by Mutual of Omaha; its financial strength reflects the parent company. Every financial rating organization gives Mutual of Omaha high marks as of 2022. Financial strength is an important component in deciding on a Medicare Supplement company. Strong companies pay claims quickly and have the ability to invest in customer support systems.

The top 3 financial rating services, A.M. Best, Standard & Poor’s, and Moody’s Investors Service, rate United of Omaha as follows:

  • A.M. Best: Superior (A+)
  • Standard & Poor’s: Strong (A+)
  • Moody’s: Good (A1)

Consumer Ratings

The NAIC (National Association of Insurance Commissioners) collects information on every operating insurance company in the United States. One excellent indicator of company strength is the Complaint Ratio. The Ratio is based on how many customer complaints are generated per company.

The ratio is built on a scale from 0 to 2. Where 2 is the worst possible score. A company in this range has more complaints than its competitors. If a company scores a 1, they experience the average number of complaints among its insurance peers. Anything below one would be excellent. In 2018, United of Omaha scored an excellent .48. This is the ratio for all their products. Out of all complaints, only one complaint was for their Medical Supplement product. This is an outstanding review and speaks volumes about their customer service.

 

United of Omaha Medicare Supplement Plans

Medicare Supplement plans are designed to cover medical expenses that traditional Medicare does not cover. Once you enroll in Medicare Part A & B, you can purchase a supplement plan.

When Medicare becomes an option for you, we recommend you begin investigating the supplement market. Each person has a window of time where they can apply for Medicare supplement products. During this open enrollment period, you are automatically accepted without special health underwriting. This window is three months prior to your 65th birthday through three months after.

Medicare Supplement policies are designed to bridge the gap between Medicare and traditional health insurance. Because of the function of these products, they are often referred to as Medigap policies.

Medicare Supplement policies protect you from unexpected medical costs that Medicare will not cover. For example, Medicare Part A covers up to 60 days of hospitalization. But you have to pay a substantial deductible of $1,556 as of 2022. If you are in the hospital for 150 days, you will run out of coverage completely under traditional Medicare.

Under Part B (doctor visits), you are responsible for a $233 deductible as well. Then Part B will only pay for 80% of approved services. You will have to pay for the 20% remaining costs. Part B includes doctor visits, ER visits, blood tests, x-rays, etc. It can get even worse. There is no cap on the 20% payout like you may have had under traditional health insurance policies.

This is where Medicare supplement policies help. They pick up those costs that you would normally incur if you only have traditional Medicare.

 

Wheelchair

 

United of Omaha offers the following Medicare Supplement Insurance Plans:

  • Medicare Supplement Plan A
  • Medicare Supplement Plan B
  • Medicare Supplement Plan C
  • Medicare Supplement Plan D
  • Medicare Supplement  Plan F*
  • Medicare Supplement Plan G
  • Medicare Supplement Plan M
  • Medicare Supplement Plan N

The government ruled back in 2015 to stop offering Plan F by Jan 1, 2020, to those born after Jan 1, 1955. However, if you are currently enrolled in Plan F, you will be grandfathered as long as you keep the plan. You can also still get the plan if you were born prior to Jan 1, 1955.

If you are currently enrolled in a plan, you are able to switch plans or companies at any time throughout the year.

Medicare Supplement Chart 2023

 

The most popular among Mutual of Omaha medicare supplement policies are Plan F, G, and N. Plan F is unique because the government has approved a high deductible option. The benefits of a high deductible plan are a significant reduction in the customer’s premium. However, you should weigh the amount of premium saved against the potential deductible. Unless you are saving more or equal to the deductible amount, this may not be the best choice for you.

Plan F will be retired for new customers at the end of 2019. Current Plan F participants will be grandfathered and can continue with the plan as outlined above.

Plan G is the most similar to F. The only difference is the Part B deductible amount. Currently, many people will choose G over F because the Part B deductible is small. The premium saved is usually more than the deductible.  Also, the high deductible option switched to the High Deductible Plan G in 2020 as well.  There are small changes in how the deductible is applied between the plans. You can find the full explanation in our High Deductible Plan G article.

 

​​What distinguishes Medicare Supplement from Medicare Advantage?

Medicare Advantage plans provide coverage under one plan by combining Medicare Parts A and B. It doesn’t support a premium for prescription drugs like Part D. However, Part D premium starts at as low as $5, so it doesn’t make a significant difference. These also go by the name Medicare Advantage Part C plans.

Insurance plans for Medicare Supplement, often known as Medigap, assist in covering the out-of-pocket costs that Original Medicare does not cover (Part A and B). Although it offers coverage in conjunction with Medicare, it does not replace Medicare as your primary insurance.

 

United of Omaha Medicare Supplement Prices

For all Medicare Supplement plans, pricing will vary depending on the state where you live and the company you choose.

Here is an example of rates from the state of Virginia, which is a good average pricing example in the United States.

The below rates are from ZIP code 80024 in Dupont, CO, for females age 65. Rates vary based on ZIP code, gender, age and, in some areas, health. A 12% household discount is not factored in here but could be if eligible.

  • Plan A: $​141.37
  • Plan F: $231.43
  • Plan G: $​184.26
  • Plan N: $115.65

This is only an illustration, and the prices are subject to have change since the time article was last revised.

It is important to keep in mind that all Medicare supplement insurance plans are federally standardized. This means they must cover the same exact benefits, making shopping around a critical step in the decision process for Medicare supplements. Because of this, be sure to check out the other important factors that should be driving your Medicare supplement decision.

The government regulates the content and coverage of each plan. Regardless of which company you choose, the coverage will be the same. The company you choose does matter. Premiums will differ per company, so it pays to shop. Also, make sure you choose a financially strong company with the ability to pay claims and provide an excellent customer experience. If you want to DIY, you can by visiting here: Mutual of Omaha Quote and Self Enrollment.

However, we recommend still reaching out to us to guide you through the quote and application process as it can be confusing to navigate on your own at 1-888-559-0103.

 

How Age Affects the Pricing of United of Omaha Supplement Insurance Plans? 

In some selected states where age affects the pricing of supplement plans, With fewer price rises than other providers, United of Omaha has some of the most affordable plans on the market.

Owners of Medigap policies from the United of Omaha frequently express dissatisfaction over escalating costs. But in jurisdictions, were factoring in the age factor to determine costs is permitted, the Medigap policyholders are seen frowning at the somewhat elevated prices. However, this problem affects all Medigap providers and isn’t exclusive to the United of Omaha. 

Prices for United of Omaha Medigap typically rise by 2% to 3% for every year of age. These little increments build up, and people in their 85s may end up paying twice as much as those in their 65s. Rate adjustments might vary, and individuals who have additional risk factors may experience greater rises.

Although age-based pricing increases are inevitable in many states, the rate at which they occur will determine your overall lifetime expenses. We advise getting quotes for various ages so you can evaluate how your prices could alter.

 

How to get a better deal from the United of Omaha?

Household Discounts

Discounts for households range from 7% to 12%, according to the business. Those who live with a spouse, domestic partner, or other seniors over 60 are eligible for the savings. Even if other members of your family don’t have Mutual of Omaha insurance, you can still receive the discount. Household discounts are state-specific and will vary for each area.

Plan G with a High Deductible: 

These affordable plans, which can cost as low as $40 per month roughly for a 65-year-old female, are not offered by many providers. 

Plans include coverage for Medicare Part B excess charges and foreign travel expenses for emergencies, and they offer the same great coverage as a normal Part G plan. However, you won’t be covered by the high-deductible plan until your out-of-pocket medical costs surpass $2,700. Medicare will stay pay its percentage as your primary insurance during the deductible stage, just not the Medicare supplement plan.

The people who need this kind of coverage the most are those who wish to guard against high costs in the event of a serious illness but are content to rely solely on Original Medicare for years when they want routine care.

 

United of Omaha Medigap Plan Benefits

  • Fast Underwriting. Most policies will be approved in 4 days or less.
  • Premium Lock-ins. Premiums are locked in for a one-year period from the effective date of your coverage.
  • Household Discounts. United of Omaha’s medicare supplement policies offers a 7 percent discount to couples who purchase a Medicare supplement plan with their company. This is a great method to reduce out-of-pocket health expenses.
  • Enroll Early. The enrollment period begins 3 months before you turn 65 and through 3 months after. When you enroll during this early enrollment period, you will be covered immediately. Pre-existing conditions are even covered during this special period.
  • Guaranteed Renewability.  United of Omaha will not cancel your Medigap plan as long as you’re able to pay the monthly premiums.
  • Billing Grace periods. You have a 31-day grace period to pay your premium from your renewal date.
  • No Policy Fees. Some supplement plans do require policy fees in addition to normal monthly premiums. This doesn’t include premium taxes which are required in some states.
  • Excellent Customer Service. Customer and claims services with United of Omaha are some of the best in the industry. The NAIC complaint ratio is a perfect indicator of their track record.

United of Omaha – What states currently offer them to new Medicare recipients?

  • States include: Colorado, Pennsylvania, and Maine (subject to change)
  • If you live in the state of Maryland and own a United of Omaha policy, we highly recommend you reach out to us to discuss your rate and options.

Omaha Mutual

 

Conclusions

Our thoughts on United of Omaha Supplement Insurance

United of Omaha is an excellent company and one of the many we represent. If you are new to Medicare, we will help you compare Medicare Plans and shop for the best possible product for your insurance dollars. If you currently own a Medicare Supplement, now may be the time to shop for your policy. Analyze the plethora of insurance plans, compare medicare benefits, and weigh the pricing to invest in what suits you the most. Companies regularly experiment with new pricing structures, such as new subsidiaries. If you don’t check your pricing every couple of years, you might be missing out.

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

United of Omaha

Rate stability
Competitive rates
Financial Stability
Coverage Area

Overall Rating
4 / 5 stars

Our TakeUnited of Omaha is a subsidiary of Mutual of Omaha. They have an A.M. Best and S&P Rating of A+ (Superior). With fantastic customer support, a high rating, and competitive rates, we recommend United of Omaha when available. They are most competitive for Plan N.

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