AARP vs Humana: Is AARP and Humana the Same?

Medicare can be confusing, with many different parts and plans to choose from. Two major players in the Medicare marketplace are AARP and Humana. But they have very different roles when it comes to Medicare plans. 

The main difference between AARP and Humana is that AARP is not an insurance company, but rather a non-profit organization that licenses its brand to insurers like UnitedHealthcare to offer AARP-branded Medicare plans. Humana, however, is a health insurance company that provides its own Medicare products, particularly Medicare Advantage and Part D prescription plans.

AARP is not an insurance company. It lends its name to insurance companies to sell Medicare policies to AARP members. The insurance companies pay AARP royalties on these plans. AARP partners with UnitedHealth to offer AARP-branded Medicare Advantage and Medicare Supplement plans.

Humana, on the other hand, is an insurance company that contracts directly with Medicare as a Medicare Advantage organization to provide Medicare Advantage plans. Humana is the second largest Medicare Advantage insurer after UnitedHealth.

This article will compare AARP and Humana Medicare plans, the pros and cons of each, and things to consider when choosing a Medicare plan.

Medicare 101

First, a quick Medicare overview. There are four main parts of Medicare:

  • Medicare Part A covers hospital insurance. It is usually premium-free if you or your spouse paid Medicare taxes while working.
  • Medicare Part B covers medical insurance like doctor visits and preventive services. It has a monthly premium.
  • Medicare Part C, or Medicare Advantage, offers an alternative to Original Medicare (Parts A and B). Plans are offered by private insurers like Humana.
  • Medicare Part D covers prescription drug coverage. Standalone plans have monthly premiums.

In addition to these parts, many people enroll in supplemental coverage like a Medigap or Medicare Supplement plan to help pay Medicare out-of-pocket costs.

AARP Medicare Plans

As mentioned, AARP does not actually provide insurance. It collaborates with UnitedHealthcare to offer AARP-branded Medicare plans.

AARP Medicare Advantage plans are a form of Medicare Part C. They provide all of your Part A and Part B coverage plus prescription drug coverage. Some plans also offer extra benefits like vision, hearing, dental, and more.

AARP Medicare Supplement Insurance, also known as Medigap, helps supplement your costs in Original Medicare. These plans help pay deductibles, coinsurance, copays, and more.

Pros of AARP Medicare plans:

  • Access to the AARP name and brand
  • Large provider network with UnitedHealthcare 
  • Some plans offer extra benefits
  • Renewable plan options

Cons of AARP Medicare plans:

  • Only available in some states
  • More expensive premiums than alternatives
  • UnitedHealthcare customer service reputation 

AARP Medicare plans can be a good option for people who want coverage from a well-known brand. But they tend to have higher premiums than alternatives.

Humana Medicare Plans

Humana is an insurance company that offers Medicare Advantage and Part D prescription plans. Here are some key Humana Medicare plans:

  • HumanaChoice HMO – Medicare Advantage plan with a local provider network
  • Humana Gold Plus HMO – Medicare Advantage plan with low copays and extra benefits
  • Humana Premier Rx – Standalone Medicare Part D plan

Pros of Humana Medicare plans:

  • Broad national provider network
  • Competitive premiums
  • Strong customer service reputation
  • Some plans offer routine vision and dental

Cons of Humana Medicare plans:

  • Provider network more limited outside certain states
  • Not all plans offer extra benefits
  • Maximum out-of-pocket costs can be high

Humana is known for affordable Medicare Advantage plans and good customer service. The provider network is not as large as UnitedHealthcare’s, but still robust in many areas.

How to Choose Between Medicare Plans

When comparing AARP, Humana, and other Medicare plans, here are some factors to consider:

  • Premiums – How much are the monthly premiums? Are there deductibles or other out-of-pocket costs?
  • Coverage – What benefits are included? Are there exclusions? Does the plan offer medical, vision, dental, hearing, etc?
  • Network – Which doctors, hospitals, and pharmacies are in-network? Is the provider network sufficient for your needs?
  • Ratings – What are the star ratings and reviews for the plans? Higher is better.
  • Prescriptions – Does the plan cover your medications? What pharmacy network does it use?
  • Fitness Programs – Some plans offer fitness programs, discounts, and more.
  • Customer Service – How good is the insurer’s customer service reputation? 

Also consider your health, budget, physician preferences, and medications when choosing a Medicare plan. Use the Medicare Plan Finder tool at Medicare.gov to compare plans in your area.

Enrolling in Medicare Plans

There are certain times when you can sign up for or change Medicare plans:

  • Initial Enrollment Period – When you first turn 65 and become eligible for Medicare.
  • Annual Enrollment Period – October 15 to December 7 each year for coverage starting January 1.
  • Medicare Advantage Open Enrollment Period – January 1 to March 31 to switch Medicare Advantage plans or go back to Original Medicare.

Use the Medicare Plan Finder to compare plans. To enroll, call the plan directly or visit their website. For AARP plans, call UnitedHealthcare or visit www.aarpmedicareplans.com. For Humana plans, call 1-800-Humana or visit www.humana.com.

FAQ About Medicare and Medicare Plans

What should I consider when choosing a health insurance provider?

When selecting any health insurance provider, consider their premium costs, coverage details, provider network, customer service reputation, and extra programs and benefits. Make sure the plan meets your needs.

What factors should I consider when evaluating a provider network?

To evaluate a Medicare Advantage or Part D plan’s provider network, see if your doctors, specialists, hospitals, and pharmacies are in-network. Consider the geographic coverage and travel distance as well. Look for urgent care clinics and telehealth benefits too.

What should I know about customer service and claims processing?

Good customer service and efficient claims processing are very important. Look at customer satisfaction surveys and reviews. Try calling a company’s customer service line to see first-hand how helpful they are.

What does Medicare Part A cover?

Medicare Part A covers hospital insurance. It covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health services. There is usually no monthly premium if you paid Medicare taxes while working.

What does Medicare Part B cover?

Medicare Part B covers doctor visits, preventive services, lab tests, X-rays, ambulance transport, mental health services, and medical equipment. You pay a monthly premium for Part B. Most people enroll in both Part A and Part B.

What does Medicare Part D cover?

Medicare Part D plans cover prescription medications. These plans help pay prescription drug costs and may have a monthly premium. Costs vary depending on the medications covered.

What are the costs associated with Medicare?

With Original Medicare, you pay a premium for Part B. You also have deductibles, coinsurance of 20% for most services, and no annual out-of-pocket max. Medicare Advantage and supplements can reduce these costs.

What is coinsurance and how does it work?

Coinsurance is your share of the costs, usually a percentage amount. With Medicare Part B, you pay 20% coinsurance for doctor visits after meeting your deductible. Supplements or Advantage plans can lower coinsurance amounts.

What is a deductible and how does it affect my out-of-pocket costs?

The deductible is the amount you pay for covered services before insurance starts to pay. Medicare Part B has a $233 deductible in 2023. Plans with lower or no deductibles reduce your out-of-pocket costs.

How can I manage my health care expenses with Medicare?

To help manage costs look for plans with low premiums, deductibles, and out-of-pocket maximums. Medicare Advantage plans and supplements provide cost protections Original Medicare lacks. Compare plans each year.

How does AARP collaborate with other insurance companies like UnitedHealthcare and The Hartford?

AARP collaborates with insurers by licensing its brand name to the companies to sell AARP-branded insurance products. These insurers pay AARP royalties on plans sold. This allows AARP to further its nonprofit mission.

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