State Farm

By providing Medicare Supplement Insurance, State Farm offers one more opportunity to be a ‘Good Neighbor’ to seniors, especially those who appreciate the option of meeting with an agent face-to-face. 

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8.9
Grand Score
8
User Score
8.9
Grand Score
8
User Score
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A Medicare Supplement Insurance plan (also known as ‘Medigap’) can help pay some or all of the costs associated with Medicare, such as copayments, coinsurance and deductibles. If you are at least 65 years old and are enrolled in Medicare Part B, you are eligible to apply for one. The ten Medigap plans, defined by letters between A and N, cover different amounts of the hospital and outpatient deductibles under Part A and what is left after Original Medicare pays for 80 percent of Medicare-eligible expenses under Part B. State Farm offers a limited number of plans, but prices them relatively competitively. Although State Farm is an independent agent-driven company, it also offers online quotes for its products and services, including for its Medicare Supplement plans. If it offers the plan you want in your state, and the premium it quotes is good, State Farm could be a good contender as your Medigap solution.

Grandfolk Scoring
Cost 8/10
Ease of enrollment 10/10
Coverage 8/10
Waiting period 10/10
Customer support 9/10
Doctor restrictions 10/10
Health exam 10/10
Renewal 10/10
Multi-policy discount 8/10
Claim turnaround 9/10
Decision-making assistance 9/10
Cost
Monthly premium
Varies with plan and state
Ease of enrollment
Ways you can enroll
Online, phone, mail-in or through an agent face-to-face
Coverage
What plans are available?
Focus on Plans A, C and F
Waiting period
How soon can services be used?
Immediately, in your Medigap Open Enrollment Period
Customer support
Ease of access
Online 24/7, by phone 24/7
Doctor restrictions
Limited to which doctors?
Any doctors in the U.S. who accept Medicare assignment
Health exam
Required for enrollment?
No, not during your Medigap Open Enrollment Period
Renewal
Is renewal automatic despite health conditions?
Yes, as long as premiums are paid
Multi-policy discount
Available to multi-member households?
Yes, if you have additional policies with them
Claim turnaround
Average time to process a claim?
7-10 business days
Decision-making assistance
Are resources available to help with decisions?
Yes, online, or by calling customer service or local agent
Age Score:
0
50-65 Years
10
65-75 Years
10
75-85 Years
9
85-Above

Although not all plans are available in every state, availability in your state can be found easily on State Farm’s website. Part of its age friendliness comes from the many ways to enroll. You can complete an online application through its website, speak with a customer service representative on the phone, mail in an application that you download from its site or visit a local State Farm office to complete the enrollment in person. Its business model of dedicated State Farm independent agents offers lots of support, regardless of your age. The agent can answer your questions, discuss coverage options and help finalize the enrollment process, all within one visit. (That can be reassuring if selecting the right Medicare Supplement plan feels overwhelming.) And that agent will continue to be there for you as you use your policy. 

Health Score:
10
Great health
10
Good Health
10
Fair Health
10
Poor Health

If you are in anything but great or good health, handling the administrative side of health care may be a burden. You may not even be well enough to hold on the line for a customer service representative. State Farm is one of the very few companies that still offer home visits by its independent agents. An appointment can be made for a State Farm agent to visit your home, explain each plan, review your specific needs and help you choose the Medigap plan that best fits your budget and your specific coverage needs. State Farm’s customer service goes above and beyond that of its competitors. 

Pros:

  • State Farm gives you the option of meeting with an independent agent. A friendly face can make the process seem less intimidating.  
  • Completing a quote on their website only takes a few minutes. Once you have a quote, you can request to have an agent call you directly to discuss the quote and answer any questions you may have. 
  • There is a live chat feature on the website in which an agent can answer any questions.
  • The website makes it easy to find what plans are available in your state.
  • The company offers 24/7 claims service either online or by telephone.

Cons:

  • The company focuses on a very limited number of plans.
  • State Farm does not currently offer Medigap insurance coverage in NY, MA, NJ or RI, according to its website search function.
  • Even when filling out an application obtained online, completion of the process will require contact with a State Farm agent or insurance producer. 

Bottom Line:

State Farm is a solid company with an established reputation and a strong financial foundation. It offers different Medicare Supplement plans in different states, focusing primarily on A, C and F. Its website indicates no coverage in NY, MA, NJ and RI. In 2016, Financial Services Roundtable (FSR) chose State Farm to receive the Corporate Social Responsibility Leadership Award. Buying a Medicare Supplement plan through State Farm is likely to be appealing if you prefer to work directly with an independent agent, and especially if you have other insurance policies with them and can benefit from additional discounts. In the end, the major decision-makers should be if they offer the plan you want, in your state, and how much they charge for it. 

Frequently Asked Questions:

If plan benefits are all the same from insurer to insurer, what distinguishes State Farm?

State Farm offers many ways to enroll, including completing an online application, speaking to a customer service representative on the phone, mailing in an application downloaded from its website or meeting face-to-face with a State Farm agent.

Are there any additional services or perks offered in choosing State Farm?

The greatest added service is reflected in State Farm’s familiar slogan: “Like a good neighbor, State Farm is there.” Many seniors may already have a friendly State Farm agent with whom they interact face-to-face for other forms of insurance. Adding one more policy through that agent is easy.  

What is the most popular Medicare Supplement plan sold through State Farm?

To date, Plan F is the most popular Medicare Supplement plan State Farm sells. Plan F offers the most comprehensive coverage of all Medicare-eligible expenses after Original Medicare pays its 80-percent portion of those expenses.

More Information:

Product Details 

Overview: State Farm Medicare Supplement Insurance is designed to help cover the deductible, coinsurance and copayment amounts not covered by Original Medicare Parts A and B. The Supplement plans cover varying combinations of Medicare-eligible expenses and lower a senior’s exposure to what could be financially devastating medical bills. 

  • Package Details: All plans are available to State Farm, but they seem to focus primarily on Plans A, C and F.

Additional Company Details

Contract Details: Policies must comply with Federal and state regulations. You can go to any doctor, anywhere in the U.S., as long as that doctor accepts Medicare assignment. If you enroll during your initial Open Enrollment Period when turning 65, the company must enroll you on a guaranteed basis and cannot drop you as long as you are paying your premiums. At that time, even if you have a disability or health problem, it cannot refuse to sell you any Medigap policy it offers, charge you a higher premium than they charge others who are 65 and older or delay the start of your coverage.

Warranty: Some state statutes provide a 30-day look period on all Medicare Supplement policies. This means the policy can be returned to the company for a full refund of all premiums. The free-look provision starts from the day the policy is delivered, and it is suggested the policy be returned in a manner in which delivery must be confirmed by the insurance company. Check if your state statutes provide this benefit.

Accreditations:  State Farm writes its Medicare Supplement Insurance through State Farm Mutual Automobile Insurance Company, which is organized under the laws of the State of Illinois and licensed in all 50 states, plus the District of Columbia. That company’s A++ (Superior) A.M. Best Financial Strength Rating appears stable. State Farm does not appear to have received accreditation from the Better Business Bureau at the corporate level, despite being in business for 95 years. Government action has been taken against the company in California related to overcharging premiums on homeowners’ and renters’ policies to nearly 250,000 Californian consumers. 

Company Details: In 1922, G.J. Mecherle sold his first auto policy for $11.17. His philosophy was one of fairness and ‘doing right by the customer.’ And thus State Farm was born. The company claims to live by that philosophy to this day, despite having grown to more than 65,000 employees and more than 18,000 independent contractor agents who service 83 million policies and accounts throughout the U.S.
 
Contact: 

State Farm Insurance 
One State Farm Plaza 
Bloomington, IL 61710

T. Mashae Pearson - Senior Advisor

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