When Original Medicare falls short, a supplemental insurance policy can come to the rescue. These health insurance policies, also referred to as Medigap, can be purchased from private companies and give seniors added protection by reducing out-of-pocket medical expenses like deductibles and copays.
Americo Life Inc., one of the biggest privately owned insurance companies in the U.S., gives seniors the option to choose from four Medigap plans. Though this number is smaller than some competitors we've reviewed, like Aetna, the Kansas City-based company provides affordable premiums and great household discounts for older adults looking to save a few bucks per month. Read on as we cover everything you need to know about Americo.
Americo sells five of the 10 available Medigap plans: A, F, high-deductible F, G, and N. This simplification in selection has its pros and cons, of course. When there are only five options, it is easier to compare plans and not get overwhelmed, which we like! But older adults may not find a plan that meets their needs. For example, if you're looking for a Plan K or Plan L option, we suggest checking out our UnitedHealthcare review or Humana review to see if their Medigap plans meet your needs.
|Part A Deductible||Part A Coinsurance||Skilled Nursing Coinsurance||Part B Deductible||Part B Coinsurance||Foreign Travel||Excess Charges|
|High Deductible Plan F*||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
*Due to changes made by the federal government, plans C, F, and high-deductible F aren’t available to seniors who first became eligible for Medicare on or after January 1, 2020.
If you want coverage for hospital stays, home health care, and hospice care, Medigap Plan A can give you the basic coverage you need at a relatively low premium. However, you will need to save room in your budget to pay the Medicare Part A ($1,484 in 20211) and Part B ($203 in 20212) deductibles if needed.
Plan F was the most popular Medigap plan selected before the federal government put a halt on new enrollees selecting the plan starting in 2020. If you were already enrolled in Plan F before 2020, you can keep your coverage. The monthly premium is high for Plan F, but if you're a senior who needs frequent medical care, you can rest assured that copays and deductibles are taken care of.
Pro Tip: Want to compare plans from other popular providers to Americo? Check out our list of this year's best Medigap plans.
Prior to 2020, high-deductible Plan F was another favored Medigap choice for older adults. This plan offers identical coverage to Plan F with one prerequisite. You must pay for Medicare-covered costs (coinsurance, copayments, and deductibles) up to the deductible amount ($2,370 in 2021).3 If you were eligible for Medicare before January 1, 2020, but not yet enrolled, you may be able to purchase a high-deductible Plan F plan.
Plan G provides the most comprehensive coverage for older adults. If you have frequent medical appointments or are diagnosed with a chronic illness, this will give you the best coverage. Keep in mind the premiums may be a bit higher. Very similar to Plan F, Plan G covers almost everything, minus the Part B deductible. As a result, you'll need to pay the Medicare Part B deductible before your insurance benefits kick in.
FYI: If you're feeling overwhelmed trying to research Medigap insurance, visit our guide to Medicare supplement insurance. It covers everything you need to know from understanding what Medigap is to how to enroll.
If you're an older adult living on a tight budget but still want decent coverage, Plan N may be for you. Your monthly premium will be lower with Plan N, but be prepared to pay for Part B deductible, coinsurance, and any excess charges.
It is a pretty painless process to view estimated monthly rates on the Americo website. To get a quote on their four plans, you'll input your name, email address, phone number, date of birth, and a few other details.
Americo offers a significant 10 percent household discount, which is 5 percent more than UnitedHealthcare. For seniors with a spouse, it is beneficial for both to purchase an Americo Medigap policy. We love a good discount!
FYI: When comparing plans and premiums between supplemental insurance providers, take this household discount into consideration. It could be the tipping point between the two providers you’re considering!
Since your monthly premium will be dependent on where you live, your age, and gender, you'll need to go through the process on Americo's website yourself to get a personalized quote. To give you an example of what costs could look like, the below monthly premiums are for a 65-year-old male residing in Kansas.
|High Deductible F*||$43.27|
*This plan is only available to applicants first eligible for Medicare before 2020.
You can apply for an Americo Medigap policy on their website, but we found the online experience to be a bit disappointing, with frequent glitches and a lack of information. Regardless, it is a secure application process, so you can rest assured your personal information is safe. If you want to give Americo's online application a shot, we've outlined the steps below. You can also call Americo and speak with an agent for a no-fuss process.
Head to the Americo website, enter the state you reside in, and click “Find Plans.”
Enter your first and last name.
Enter your email address.
Enter your date of birth.
Answer three questions about yourself.
Enter your ZIP code.
Enter your phone number.
FYI: An Americo insurance may contact you by phone or text through the number you provide. Enter a phone number you are comfortable being reached at.
Review your available plans. Once you've selected a plan, click “Apply Now.”
Follow the application process. You'll be asked to enter your Medicare information (and other details) to apply.
Tip from the Pros: To get the best prices and selection of Medigap policies, make sure to purchase a policy during your six-month initial enrollment period. This six-month enrollment period begins the month of your 65th birthday.
In the U.S., nearly 6 in 10 people are worried about how they would pay for the medical expenses associated with a major accident or illness.4 A Medigap policy from Americo gives older adults the peace of mind and security that their out-of-pocket medical expenses are reduced. Though Americo has limited plan options compared to providers we've reviewed, like Colonial Penn and other major companies, they make up for it with their low premiums and generous household discount. If you're hunting for a good deal, we think getting a quote for an Americo Medigap policy in your area is worth the time.
Your monthly premium is dependent on your location, age, and gender. Rates can be lower than $100 a month, or they can be over $200 a month based on your specific circumstance.
Medicare Part A and Part B only cover about 80 percent of medical expenses. A Medigap policy can absorb some of that leftover 20 percent and provide financial security.
The most popular plan is Plan G, as it provides the most comprehensive coverage. If you’re looking for a plan with a lower premium than Plan G, Plan N from Americo may be a better option.
You can apply for a Medigap policy once you’re 65 or older. It is best to apply during the six-month enrollment period, which begins the month you turn 65.
Medicare.gov. (2021). Medicare costs at a glance.
Medicare.gov. (2021). Part B costs.
Medicare.gov. (2021). How to compare Medigap policies.
Gallup. (2018). Paying for Medical Crises, Retirement Lead Financial Fears.