7 Best Health Insurance Plans for Retirees and Seniors
For most seniors and retirees, the best health insurance plan will be through Medicare.
Medicare can feel confusing because it has several different parts, but ValuePenguin can help you navigate it.
- Medicare Supplement Plan G from AARP/UnitedHealthcare (UHC) paired with Original Medicare is a great option for most seniors.
- A Medicare Advantage plan from AARP/UnitedHealthcare is a good choice if you want bundled coverage at an affordable price.
Compare Medicare Plans in Your Area
Best health insurance for seniors and retirees
Best health insurance for seniors overall: Medicare
Medicare is the best health insurance option for seniors and retirees.
Medicare has both the best benefits and cheapest rates for people age 65 and older or who have a qualifying disability. You can choose between two different options: Original Medicare and Medicare Advantage.
Original Medicare is run directly by the government. Original Medicare includes Part A (hospital insurance) and Part B (medical insurance). With Original Medicare, you can get care from 99% of the doctors in the country.
On top of Original Medicare, you can add extra coverage from private health insurance companies through a Medicare Supplement plan (also called Medigap). This lowers the portion of medical costs you pay from 20% of the bill to nearly $0.
Another add-on is a Medicare Part D plan for prescription drug coverage, which is your only way to get prescription drug insurance with Original Medicare.
Medicare Advantage (also called Medicare Part C) is a health insurance plan that you buy from a private insurance company. Plans have to cover the same services as Original Medicare, and they typically include prescription drugs, dental and vision.
Medicare Advantage plans work like traditional health insurance plans. You'll need to use an in-network doctor or hospital to get the cheapest rates on medical care. Plans also have copays that you pay for each medical service, a deductible and an out-of-pocket maximum.
Most people can sign up for Medicare starting three months before the month they turn 65. This is the start of what's called your "initial enrollment period," which then extends through the month you were born and for three months after. This is the best time to sign up because you get cheaper rates for both Part B and Medigap plans.
Best Medicare Advantage for seniors and retirees: AARP/UnitedHealthcare
AARP/UnitedHealthcare has the best Medicare Advantage plans for 2025 because of its low prices, good coverage and high levels of customer satisfaction.
AARP/UnitedHealthcare has the best combination of affordability, coverage and quality. The company also sells plans nationwide, except in Alaska. This overall strong performance makes it the best Medicare Advantage company.
Bundled Medicare Advantage plans are sold by private insurance companies. Most people can get Medicare Advantage plans starting at $0 per month. The average cost of Medicare Advantage is $28 per month for plans with prescription drug coverage. Before you sign up, make a list of your regular doctors and check to make sure they're in the plan's network.
Want more options? Look into the best Medicare Advantage plans.
Best Medicare Supplement for seniors and retirees: AARP/UnitedHealthcare
AARP/UnitedHealthcare is the best company for Medigap plans in 2025.
For most people, the best company for Medigap coverage is AARP/UnitedHealthcare. Medicare Supplement (Medigap) plans cover many of the costs that you usually pay if you have regular Medicare.
The coverage you get with a given plan letter is the same regardless of which company you choose. That means Medigap Plan G from one company will have the same benefits as Plan G from another company.
Medigap plans usually cost more than Medicare Advantage. However, you'll usually pay less when you get medical care with a Medigap plan than with a Medicare Advantage plan. This is especially useful for seniors who are concerned about medical costs rising as they age.
With Medigap, you can go to any doctor who accepts Medicare.
It's a good idea to first choose the plan letter with the benefits you want. Then pick a company that has affordable prices, good ratings and useful add-on benefits.
- Why Plan G? As the best plan available to new enrollees, Plan G covers all of your costs with Original Medicare except for the Medicare Part B $185 monthly rate. The only better option is Plan F, which you can't buy unless you were eligible for Medicare before Jan. 1, 2020.
- What does Plan G cover? The plan pays for Medicare Part A copays and the deductible, so you won't pay anything for hospital stays, hospice care or a skilled nursing facility. It pays for all Medicare Part B copays and uncommon excess charges, so all doctor appointments, treatments and tests will be free after you meet a small deductible. It also covers the cost of blood transfusions and 80% of foreign travel emergency medical costs.
- What medical care will you pay for with Plan G? Plan G doesn't cover the annual Medicare Part B deductible, which is only $257. This means you'll have to pay for some medical care at the beginning of the policy year before your spending reaches that amount.
Want more options? Check out all the top picks for the best Medicare Supplement plans.
Best prescription drug plan for seniors and retirees: Wellcare
Wellcare has the best overall Medicare Part D plans for prescription drugs and stands out for its combination of good ratings and affordability.
Wellcare is the best Medicare Part D company because it offers high-quality, affordable coverage. The company has low average monthly rates, and some plans cost as little as $0 per month.
If you choose Original Medicare, the only way to have coverage for prescription drugs is to sign up for a stand-alone prescription drug plan called Medicare Part D. It's important to get Part D because you may need more prescription drugs as you get older, and medications can be very expensive.
You don't normally need a Part D plan if you have Medicare Advantage because most plans pay for prescription drugs. However, it's a good idea to buy a Part D plan if your Medicare Advantage policy doesn't have this coverage.
Want more options? Check out all the top picks for the best Medicare Part D plans.
Best health insurance for retirees under 65: Blue Cross Blue Shield
Blue Cross Blue Shield is the best company for private health insurance plans.
Blue Cross Blue Shield (BCBS) has the best overall health insurance plans. They're well-rated and widely available through HealthCare.gov or your state marketplace.
A marketplace health insurance plan is the best option if you're under 65, you don't have coverage through a job and you don't qualify for Medicare or Medicaid. You can get the best deal on health insurance plans through HealthCare.gov or your state health exchange, also called "Obamacare."
Health insurance costs can get very high as you age. However, you can get government discounts, called premium tax credits or subsidies, if you have a low to average income and you buy your plan through the health insurance marketplace.
Want more options? Check out all the top picks for the best health insurance companies.
Best short-term coverage for seniors and retirees: UnitedHealthcare
UnitedHealthcare is the best overall company for short-term health insurance plans.
UnitedHealthcare's short-term plans offer more coverage than many of its competitors.
If you have a gap in your insurance coverage, such as after retirement and before Medicare, a short-term policy is a quick way to get benefits. Short-term plans are typically cheaper than regular health insurance. But, short-term plans almost always have worse coverage than plans bought through HealthCare.gov or your state marketplace. Plus, short-term plans aren't eligible for discounts, which means they may be more expensive than marketplace coverage if you earn a low to average income.
Perhaps most importantly, short-term plans don't offer many important protections that come with marketplace plans. For example, a short-term plan can deny coverage or charge you a higher rate based on your health history. Short-term plans can also cap your medical benefits at a certain level. That means you have to pay 100% of your hospital bill once you've reached your plan's limit.
Short-term policies are usually only a good idea if you need some coverage for a few months before your Medicare plan or traditional health insurance policy begins.
You may be able to buy a marketplace plan outside of open enrollment if you've recently lost your health coverage because of a move, marriage, divorce or job loss by qualifying for a special enrollment period.
Want more options? Check out all the top picks for the best short-term health insurance plans.
Best health insurance for seniors who have a low income: Medicaid
Medicaid is the most affordable plan for seniors and retirees who have low incomes.
Medicaid offers free health insurance to people who earn a low income. Even if you already have Medicare, you can dual enroll in both Medicaid and Medicare to lower your medical costs.
Income limits for Medicaid depend on where you live. In 40 states and Washington, D.C., you can qualify for Medicaid if you earn about $21,000 as a single person (roughly $44,000 per year for a family of four). The limits are higher in Alaska and Hawaii. And in 10 states, you can't qualify for Medicaid unless you earn a low income and you meet another qualification, such as having a certain disability or needing nursing home care.
Seniors aged 65 and over who earn too much to qualify for Medicaid may still be able to qualify if they have high medical costs. The Medicaid spend down program lets you subtract your medical costs from your income. You can use this reduced amount to qualify for Medicaid.
Frequently asked questions
What's the best health insurance for seniors and retirees?
Medicare is the best health insurance for retirees and seniors. You can choose between Original Medicare (Parts A and B) or private, bundled coverage, called Medicare Advantage.
What is the best secondary insurance if you have Medicare?
The best secondary insurance if you have Medicare is Medigap Plan G. Plan G helps pay for the costs you're responsible for with Original Medicare. You should also consider getting prescription coverage through a Medicare Part D plan.
You don't need secondary insurance if you have Medicare Advantage because these plans offer bundled coverage.
How much is health insurance for seniors?
You can expect to pay $185 per month for Medicare Part B in 2025. You'll pay an extra $28 per month on average if you have a Medicare Advantage (Part C) plan.
Methodology
Health insurance plan data is from the Centers for Medicare & Medicaid Services (CMS) public use files and insurance company plan documents. Factors such as cost, coverage, benefits and networks of doctors were used to compare companies. Other sources include:
- HealthCare.gov's report on current federal poverty level (FPL) amounts
- KFF's report on Medicaid expansion
- Ratings and complaints from HealthCare.gov, J.D. Power, AM Best, the National Committee for Quality Assurance (NCQA) and the National Association of Insurance Commissioners (NAIC).
Medicare Advantage rates are only for plans that include prescription drug benefits. The rate analysis excludes employer-sponsored plans, Special Needs Plans, PACE plans, sanctioned plans and Health Care Prepayment Plans (HCPPs). Medigap costs are based on data for all private companies, using quotes for a 65-year-old female nonsmoker.
About the Author
Senior Writer
Talon Abernathy is a ValuePenguin Senior Writer who specializes in health insurance, Medicare and Medicaid. He's also contributed to other insurance verticals including home, renters, auto, motorcycle and flood insurance.
Talon came to ValuePenguin in 2023. Since his arrival, he's helped to expand the site's health insurance-related content offerings. He enjoys helping readers understand the ins and outs of America's all too complicated health insurance landscape.
Before coming to ValuePenguin, Talon worked as a freelance writer. His prior work has touched on a broad range of personal finance-related topics including credit-building strategies, small business incorporation tactics and creative ways to save for retirement.
Insurance tip
In many parts of the country, you can qualify for a free Silver health insurance plan if you meet certain income requirements. Government subsidies in the form of premium tax credits and cost-sharing reductions may mean you'll pay nothing for coverage.
Expertise
- Health insurance
- Medicare and Medicaid
- Flood insurance
- Homeowners insurance
- Renters insurance
- Auto and motorcycle insurance
Referenced by
- The Miami Herald
- Money.com
- MSN
- Nasdaq
- The Sacramento Bee
- Yahoo! Finance
Education
- BA, University of Washington
- Certificate in Copyediting, UC San Diego
Credentials
- Licensed Life & Disability Insurance Agent
- Licensed Property & Casualty Insurance Agent
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