Colonial Penn Medigap Plans Review

The Pros and Cons of Colonial Penn

Overview of Colonial Penn’s Medigap Plans

The chart below outlines the seven Medigap plans that Colonial Penn offers and the benefits of each plan to help you start your search. Note: Medigap Plan B is only available in Pennsylvania, and Plans C and D are only offered in New Jersey.

*Plan F and Plan G are also offered as a more affordable high-deductible plan, but the deductible must be met yearly before coverage begins.

**Plans C and F are available only to people who became eligible for Medicare before January 1, 2020.

Which Colonial Penn Medigap Plan Is Right for Me?

Below, we’ll use scenarios and lifestyle preferences to help outline which plan may be the best choice for you.

Seniors with a limited budget who don’t visit the doctor as often

Plan N is the least expensive Medigap plan for seniors in good health who have infrequent doctor appointments. This plan requires a $20 copay for every office visit and a $50 copay for ER visits. Unfortunately, anything you spend on Plan N copayments doesn’t count toward your annual Part B deductible.

Seniors who want basic yet comprehensive coverage

Many adults find that Medigap Plan A and Plan B meet their needs. These plans provide hospital coverage, hospice care, and home health care. Plus, they assist with copays for routine doctor appointments. The big thing you miss out on with A and B is skilled nursing facility care coinsurance.

Seniors with chronic health conditions and/or seniors with lots of appointments

Colonial Penn offers a high-deductible option for Plan F and Plan G. If you use medical services a lot, going with one of these plans can save you money. Your monthly premium is lower, and once you meet the deductible, your plan covers 100 percent. This is a great choice if you have frequent follow-ups or specialist appointments or if you expect to need surgeries. Of course, it’s only worth it if you anticipate meeting that deductible. Otherwise, you may be better off with regular Plan F or Plan G. Plan G is the most chosen Medicare Supplement coverage; it covers all out-of-pocket cost sharing except the Part B deductible.3

Seniors who live in a skilled nursing facility or plan to move into one

Only plans C, D, F, G, and N limit costs associated with skilled nursing facilities. If you have a medical condition or disability that makes it so you’d benefit from a skilled nursing facility now or in the future, one of those plans could help you save money.

Seniors with the travel bug

Love to travel? Plans C, D, F, G, M, and N also provide international emergency coverage. If you have family overseas that you like to visit or simply plan to see the world during retirement, obtaining that coverage makes a lot of sense.

How Much Do Colonial Penn Medigap Plans Cost?

Colonial Penn does not offer online quoting like Cigna and Aetna. So, the only way to find out the cost is to fill out a contact form and have an agent call you or visit your home. While that might sound convenient if you prefer phone vs. online, it could very well lead to ongoing solicitation efforts. We all know how tough those can be to deal with! If excellent customer service matters to you, we rated Cigna as having the best; their customer service is based in the U.S. and is available via phone 24/7, 365 days a year.

We’ve seen it suggested that Colonial Penn’s rates are higher than those of other carriers we’ve reviewed, like Aetna. However, the only way to know for sure would be to give Colonial Penn a call. For comparison, we rated Humana as the best value for low-income seniors seeking an affordable Medigap plan (they also offer you a household discount of up to 12 percent!).

If you decide to call, you need to ask about more than just premiums for your first year. Find out how they handle rate increases and what those increases might look like for you.

Policy pricing will follow one of these methods:2

• Community rated: Everyone receives the same premium, no matter their age. These plans are often the most cost-effective over time.
• Issue-age rated: Your premium is based on your age when you buy the policy. For most Medigap users, that’s 65. Prices will increase with inflation.
• Attained-age rated: Your premium starts lower and increases as you age. These tend to be the most expensive plans over time.

Nine states (AR, CT, ID, MA, ME, MN, NY, VT, and WA) currently require premiums to be community-rated among policyholders ages 65 and older. Four states — Arizona, Florida, Georgia, and Missouri — permit issue-age rating but not attained-age rating. The majority of states (37 and Washington, D.C.) allow any rating system.2

Still deciding if a Medigap plan is worth the cost? Watch our video below with Medicare expert Danielle Roberts on how Medigap plans can help protect your savings.

How to Buy a Colonial Penn Medigap Policy

The best time to purchase a Medigap policy is during your six-month Medigap open enrollment period. During this time, you have access to the best prices and policy options. Open enrollment starts on the first day of the month when you’re 65 or older and enrolled in Medicare Part B.

You can still purchase a Medigap policy after open enrollment. The difference is that the company will use medical underwriting, which means taking a close look at your medical history. For many seniors, this limits the policy options and affects rates. That’s why we think it’s best to enroll when you’re first eligible.

If you want to enroll with Colonial Penn (or just get more information), you can call 888-910-3133 or follow the steps below to have an agent contact you.

1. Visit the Bankers Life Medicare Supplement Insurance page. They sell the Medigap policies in partnership with Bankers Life and Washington National Insurance Company. Click on “Get a Quote” to get started.
   

   Get a quote for Colonial Penn Medigap plans

2. After you click on “Get a Quote,” a dropdown will appear with a contact form.
   

   Filling out your contact form for Colonial Penn Medigap insurance

   By filling in your info and hitting “Submit,” you’re permitting Bankers Life agents to call you. While this is necessary to get a quote and move forward with purchasing a policy, it may be frustrating if you decide to go with another carrier; Bankers Life might continue to call and check in with you.

3. When the agent calls you, you need to get as much information as you can. The following questions are helpful to ask:
   • What policies are available to me based on where I live?
   • Can you give me quotes for all of my different plan options?
   • How are rate increases calculated?
   • Which plan would you recommend for me?
   • Are any discounts available?
4. Next, we recommend researching some other Medigap carriers and comparing their costs, customer service, and any extras to Colonial Penn’s.
5. Use what you’ve learned to make a final decision. If you choose Colonial Penn, communicate your decision with your agent. They will provide you with the next steps so that you can officially apply and purchase a policy. You’ll also find out your payment options, such as checks, money orders, or bank withdrawals.

Competition

It’s best to compare your options before making your decision. Here is how Colonial Penn stacks up against the competition:

Colonial Penn vs. Cigna

Cigna has four plans compared to Colonial Penn’s seven. Customers get a 5 percent enrollment discount, which is not offered at Colonial Penn since you have to call to enroll. Customers can enroll online easily with Cigna. Cigna also has a 24/7 health information line and offers additional supplemental insurance for prescriptions. To learn more, read our Cigna Medigap review.

Colonial Penn vs. Blue Cross Blue Shield

At BCBS, you get instant quotes online. Plus, re-enrollment is automatic each year. Some of their plans offer add-on hearing, vision, prescription, and dental plans, as well as a SilverSneakers membership. They also have a 24/7 nurse line and health and wellness discounts through Blue365. Check out our full Blue Cross Blue Shield Medigap review for more details.

Colonial Penn vs. Humana

Humana offers a 6 percent online enrollment discount (and up to a 5 percent household discount) and dental and vision add-ons. Based on your age, you could have up to eight Medigap plans with Humana to choose from, and you get the free SilverSneakers fitness program and 24/7 customer service. Visit our Humana Medigap plans review for more details.

Final Thoughts on Colonial Penn

Colonial Penn and Bankers Life use knowledgeable insurance agents to provide quotes and sell their Medigap policies. While some might appreciate that personalized touch, for others, it just means the research will take some extra time. You’ll also need to hand over your contact information. Other popular Medigap carriers we’ve reviewed, including Blue Cross Blue Shield and Aetna, make quotes instantly available online, and you can get those quotes anonymously.

If you feel wary of handing out your contact info or prefer the online shopping experience, you might want to pass on Colonial Penn. But if you like the thought of handling it all over the phone, then Colonial Penn is worth looking into. Colonial Penn is best for aging adults who prefer smaller insurance carriers and just want standardized Medigap coverage.