Mutual of Omaha Medicare Supplement Review

If you are concerned about the ability of a Medicare Supplement company to pay its obligations, Mutual of Omaha might be a reassuring choice for you.

Who is Mutual of Omaha?

Mutual of Omaha has been selling Medicare Supplement Insurance since 1966, the first year people were able to enroll in Medicare programs. It is the second-largest Medicare Supplement insurer, insuring 14 million Medicare participants in 2019.

Mutual insurance companies are not public companies. They are owned by the people they insure. Many people feel that buying insurance from mutual companies is safer because mutual companies are obligated to operate in the best interests of their insureds – not their stockholders.

Mutual of Omaha enjoys an A+ rating from AM Best, which rates the financial stability of insurance companies. This is the highest available financial rating for an insurance company.

Does Mutual of Omaha Offer Medicare Supplement Plans?

Original Medicare (Parts A and B) covers many medical charges, but it leaves some expenses for participants to pay. Medicare pays about 80% of Part B expenses and an allocation of Part A costs, based on how long you spend in the hospital. This leaves a retiree responsible for the remainder. Medicare Supplement plans help cover the shortfall.

Some Medicare Supplement plans (also known as Medigap policies) pay more expenses than others. The benefits each offer are identified by letters – A, B, F, high deductible F, G, high-deductible G, K, L and N. Only applicants first eligible for Medicare before Jan. 1, 2020, may purchase Plans C, F and high-deductible F.

Mutual of Omaha offers only plans A, C, F, G, and N.

Key

• ✓ = Plan covers 100% of this benefit

• X = Plan does not cover this benefit

• % = Plan covers that percentage of the benefit

• N/A = Not applicable

Notes:

• *Plans F and G also offer a high-deductible option in some states. You must pay Medicare-covered costs up to $2,870 in 2025 before coverage begins.

• *Plans C and F are not available to people who became eligible for Medicare on or after January 1, 2020.

• For Plans K and L: After meeting your yearly out-of-pocket limit and Part B deductible, the plan pays 100% of covered services for the rest of the year.

• *Plan N pays 100% of Part B coinsurance, except for up to $20 copay for office visits and up to $50 copay for ER visits (if not admitted).

What Are the Key Features of Medigap Policies Offered by Mutual of Omaha?

Not all of the four Medicare Supplement Insurance plans Mutual of Omaha sells are available in all states. You can plug your birth date and ZIP code into this Mutual of Omaha calculator and determine which plans are available to you and how much each will cost.

Mutual of Omaha only sells a limited number of plans – Plans A, F, G and N. A is the most basic plan – and usually the cheapest. The other plans provide more benefits. Here are some things to consider when evaluating them.

What About Popular Plan F?

Plan F is no longer available to anyone who wasn’t previously enrolled in Part B prior to January 1, 2020. But if you have it, you can keep it.

Plan F has long been the most popular plan. While it is more expensive than the others, it also covers the most if you get sick. It can be very convenient because you can go to the doctor without worrying that you’ll have to pay co-pays or other bills.

With Mutual of Omaha Medigap coverage, monthly premiums for a 65-year-old nonsmoking woman vary significantly by ZIP code. For Plan F (only available to those eligible for Medicare prior to Jan 1 2020), you may see premiums roughly in the range of $200-$400+ per month in higher-cost metro areas, and as low as around $110-$300 in lower-cost regions.

What About Practical Plan G?

Plan G offers everything that Plan F offers, except the Part B deductible, which in 2022 is $233.That is about $17 a month, a useful figure to know when you calculate which plan will give you the most value for your money.

For Plan G (which most new Medicare enrollees can purchase), premiums for the same demographic generally run about $150-$260 per month in higher-cost locales, and perhaps $90-$170+ in more affordable markets.

NOTE: These are ballpark ranges: your actual premium depends on exact ZIP code, whether you qualify for household discounts, your gender and age at issue, and the rating structure your insurer uses

What About Economical Plan N?

Plan N could be the right choice for you if you don’t go to the doctor very often. It doesn’t cover these three costs:

1.   Part B deductible

2.   Part B copays for office visits and emergency room visits

3.   Part B excess charges

Plan N charges a $20 co-pay for each office visit and a $50 co-pay for any emergency room visit when you aren’t admitted.

Part B excess charges are the trickier charge to estimate. Most healthcare providers accept Medicare and its preset payment rates for their services. This is known as assignment. But some don’t. In that case, Medicare allows them to charge an excess charge of 15% more than 95% of the full assignment amount.

For example, if your specialist doesn’t accept assignment and the approved Medicare amount for his services is $2,000, the doctor will charge you an extra $285. Plans F and G would pay this charge, but if you have N, you have to pay it yourself.

Does Mutual of Omaha Offer Medicare Advantage Plans?

Mutual of Omaha no longer offers Medicare Advantage plans. It got into the business in 2018, but it sold out in early 2020.

Why Choose Mutual of Omaha?

Mutual of Omaha boasts on its website and in its internal materials that it pays 98% of Medicare claims within 12 hours. “Most insured rarely see a bill,” it says.

One of the best benefits is an up-to 12% discount on your policy if you live with a spouse, a partner or more than three people 60 or older. They don’t even have to be Mutual of Omaha customers, according to its internal information.

While you can always buy Mutual of Omaha Medicare Supplement plans from an independent broker or directly online, sometimes there are advantages to dealing with an agent employed by or affiliated with the insurance company. They are knowledgeable, and they understand how the company’s products work together. That means they may be able to save you money on the various kinds of insurance you buy.

The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of MedicareGuide.com or HealthCare, Inc.