State Farm Medicare Review

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One of the largest home and auto insurers in the country, State Farm also offers a range of less well-known products, including Medicare Supplement plans. With a long history and one of the most recognized names in the insurance industry, State Farm’s Medicare Supplement is likely to appeal to those who already trust the company with their other insurance needs.

Not looking for Medicare information? Click here for our general review of State Farm.

About State Farm

Founded in 1922, State Farm grew from small roots to become a Fortune 500 company and hold the rank of the most popular auto and home insurance company in the country. They hold their top ranking in market share by a wide margin in both areas. The company is headquartered out of Bloomington, IL, but they have agents located across the country.

The company uses a captive agent system, meaning agents are generally dedicated to State Farm and its products. Coverage is available in all states with a long list of products that include home, auto, life, and specialty insurance. The company has also expanded operations internationally and has a long list of subsidiary companies. State Farm has a number of sponsorships, including the NBA, a variety of music festivals, and award shows.

In 2016, Fortune ranked State Farm at number 35 on the 500 largest companies list in America, making them a real powerhouse in the insurance industry as well as among all major companies in the nation. They also ranked at number 93 on the Global 500. Thanks to increased spending in their marketing and more focused sponsorship, among other factors, State Farm’s financial situation is very strong. This makes them a solid bet to continue in their industry-leading position.

State Farm offers Medicare Supplement coverage in most states, with the exception of Massachusetts, Rhode Island, and New Jersey. Although they are an agent-driven company, they do offer online quoting for many of their products, including their health plans.

State Farm Medicare Supplement Plans

A quick look through the listed states shows that in most locations, State Farm offers three Medicare Supplement plans. The options are Plan A, which is the most basic option, Plan C, and Plan F.

The Plan A option covers Medicare Part A and Part B coinsurance as well as hospice coinsurance and three pints of blood annually. Plan C adds a significant amount of extra coverage, including deductibles, skilled nursing coinsurance, and foreign travel emergency coverage. The most coverage is available with Plan F, which adds Part B excess coverage to the list.

The State Farm website offers a basic outline of what is covered by each plan, but there is no detailed information. The quoting system doesn’t allow for comparison between the plan options, so the basic outline is all that’s available unless you contact an agent for further information.

The online system will direct customers to an agent to complete the process after receiving a basic quote.

State Farm Medicare Rates

State Farm isn’t generally known as a budget insurance company, and their rates rarely rank among the lowest. However, they do appear to offer very reasonable premiums for Medicare Supplement insurance.

Rates were obtained from the State Farm website for a 66-year-old female in Los Angeles County, California for comparison. The Plan A, basic coverage came in at $85.68. This ranks State Farm up to 50% lower for premium cost than many other companies’ Plan A coverage.

Plan F coverage quoted for the same person came in at $156.06. Again, even for the highest available level of coverage this rate is considerably lower than many other major companies for the same supplement plan.

State Farm does offer multi-policy discounts but the website doesn’t indicate whether or not Medicare plans qualify for a discount. Either way, State Farm’s rates for this type of policy are very reasonable; an additional discount would certainly rank them as one of the most affordable options for Medicare Supplement insurance that we have come across in our tests.

Ratings and Reviews

State Farm is a huge company, and as a result it’s difficult to separate out reviews for one product line. While Consumer Affairs does have separate sections for State Farm auto and home insurance claims, there is no such section for Medicare. This is likely at least partially due to the fact that State Farm isn’t well known for it’s health care plans; most of the people writing reviews are auto, home, or life customers – or a combination of these. The company does manage to have a 3-star overall rating for both home and auto insurance on Consumer Affairs, which is notable since it’s rare to see ratings that high.

Overall, State Farm does have a lot of complaints, but they are also an incredibly large company. There are 776 reviews of the company on Pissed Consumer, although only 186 of those left a star rating. The overall rating is 1.5 stars; this is unusual for this website as it’s rare to see a positive review on a site designed for complaints. The overall number covers all of State Farm’s product lines, and as a result it is really quite low when you consider the fact that it is the largest home and auto insurer in the country.

The Better Business Bureau records 1906 complaints against State Farm in the past three years. 448 of those were closed in the past 12 months. These numbers are not alarming for a company this large. They currently have an A- rating.

Most of the complaints seemed to center on claims being denied and poor customer service, although there were frequent comments about helpful agents, so it seems likely the customer service problems occurred on the claims or billing end of things.

We were unable to locate any reviews pertaining directly to State Farm’s Medicare insurance coverage. However, the existing reviews do give a general picture of how the company does business. All insurance companies see complaints, and complaints about claims being denied are the most common. It’s difficult to judge how valid these complaints are without detailed knowledge of the claim and coverage; when there is a large number of such complaints, however, it does carry more weight. In this case, the number of complaints for the size of the company isn’t particularly concerning.

The Bottom Line

State Farm offers a small selection of Medicare Supplement insurance plans at reasonable rates. They are a huge company with a strong reputation and a solid financial foundation, and are well worth considering for anyone in the market for supplemental coverage.

State Farm is likely to appeal in particular to those who prefer to work with an agent one-on-one rather than obtain policies online or through a large customer service phone line. Although State Farm rarely ranks as one of the cheapest companies, in the case of Medicare Supplement, they do seem to be a good blend of service and price. For those already using State Farm for other policies, purchasing Medicare Supplement coverage from the company may help keep everything in one place.

For a list of companies that we recommend, visit our Best Insurance Companies page.

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