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Page Reviewed / Updated – June 09, 2020

State Farm is a mutual insurance company that’s been based in Bloomington, Illinois, since 1922. The company has now grown to include over 59,000 employees and 19,000 agents. Led by CEO Michael Tipsord, the company has a “neighborly” reputation and emphasizes community responsibility. According to a 2019 report, State Farm provided several thousand grants and over 250 thousand volunteer work hours to nonprofits and charitable causes.

State Farm handles over 22 thousand claims per day, serving seniors and other clients who have one or more of its many different insurance policies. The company is undoubtedly still best known for its automobile insurance, of which it is the number one provider in America. Many people may not even realize that State Farm also offers Medicare Supplement Insurance in 45 states plus Washington D.C. Other Medicare-related products, such as Medicare Parts C and D, are not available from this company.

The Basics of State Farm Medicare Supplement Insurance

A State Farm Medicare Supplement Insurance (Medigap) plan is a form of private insurance that kicks in once Original Medicare (Parts A and B) has covered its maximum amount for a health service or item. While Medicare does cover an extensive list of hospital and outpatient costs, it was never designed to provide “full” coverage. Instead, it typically covers roughly 80% of a patient’s approved procedures. The patient regularly contributes to the cost of their care through copays, coinsurance, deductibles, and other costs. Collectively, these different charges are referred to as cost-sharing. Cost-sharing isn’t always high, but it can be. A Medicare Supplement Insurance plan covers many of these cost-sharing responsibilities, making paying for care much more manageable.

The vast amount of information about Medicare Supplement Insurance on the internet and in advertisements can be a bit confusing. The points below about what this insurance is not will help you further understand the role of Medigap in your life.

  • Plans Are Not Administered by CMS: Medicare allows for these plans, but it never administers, pays for, or in any other way owns them. The only control that Medicare has here is that it tells companies which standardized plans they can offer. 
  • Medigap is Not for Everyone: You’re only eligible for these plans if you already have Medicare Parts A and B (for which you must pay separate fees). Moreover, if you don’t sign up when you’re first eligible, then a company might deny you a policy based on your health. Learn about who can sing up, and when, by reading this article on the official Medicare website. 
  • Coverage is Not Comprehensive: This insurance fills many coverage gaps, but it still has limits. Specifically, it won’t cover items and services that Medicare itself denies all coverage for. For example, Medicare Supplement Insurance won’t cover “alternative” services such as acupuncture. Regardless of the fact that it isn’t comprehensive, it can still significantly lower your medical bills.

Overview of State Farm Medicare Supplement Plans

State Farm offers Medicare Supplement standardized plans A, B, C, D, F, G, and N in accordance with Medicare regulations. This means that there are only three of the possible standardized plans- K, L, and M- that State Farm does not offer.

Standardized plans are advantageous for consumers due to their tight regulations. In other forms of insurance, the company often has the freedom to deny coverage for specific tests and procedures without fully explaining why. With a standardized plan, however, if coverage is part of the plan style according to Medicare regulation, then it must be provided when the need arises. The main difference between plans offered by different companies is the monthly premium, not the features of the plan itself.

Below you can learn about what coverage is included in each of the plans that State Farm offers to those eligible for Medicare on or after January 1, 2020. Plans C and F because these plans are no longer available to those newly eligible for Medicare. Only those who were eligible prior to the start of 2020 may sign up for plan C or F.

State Farm Medicare Supplement Options
Supplement Option  365 Extra Days of Hospital Coverage Copay and Coinsurance Coverage Deductible Coverage Part B Excess Charges** Blood Transfusions  (3 Pints) Out-Of-Pocket Spending Limit Overseas Medical Care/Expenses
A -Part A -Part B -Hospice
B -Part A  -Part B -Hospice Part A 
D -Part A -Part B -Hospice -Skilled Nursing Facility  Part A  80%
G -Part A -Part B -Hospice -Skilled Nursing Facility  Part A  80%
N -Part A  -Part B* -Hospice -Skilled Nursing Facility  Part A 80%

*Plan N’s Part B copay/coinsurance coverage excludes some minor copays for office visits and emergency visits. 
**If your doctor does not accept assignment (have an agreement with Medicare to take Medicare’s payments as “payment in full”) then she or he may choose to levy excess charges which will be charged to the patient.

When you’re shopping for plans, it’s important to know that location can impact which plans are available. The vast majority of states that State Farm serves offer plans A, B, D, G, and N. Plan B is only offered in three states at this time: Pennsylvania, Delaware, and Kansas. Additionally, Minnesota and Wisconsin have unique plans that don’t fit the normal letter plan system. This is due to the fact that their states have opted to follow their own Medicare regulations.

It’s also important to note that there are a few states that State Farm does not serve with any Medicare Supplement plans. You can read the list of these states below.

State Farm Medicare Supplement plans are NOT available in the following states:

  • Connecticut
  • Massachusetts
  • New Jersey
  • New York
  • Rhode Island

The Cost of State Farm Medicare Supplement Plans

For policies available to those newly eligible for Medicare in 2020, monthly premiums start around $90 and can go over $195. These cost ranges are based on a non-smoking female newly eligible for Medicare, so in some cases, you may face higher costs. Additionally, Plans C and F, which are only available to those who were eligible prior to 2020, can cost between roughly $160 and $250+ per month. Their significant cost difference compared to other plans is partly due to their high levels of coverage.

When you sign up for a plan- regardless of which one- will affect your costs. Signing up when you’ve already passed your “guaranteed issue” phase can mean medical underwriting, higher costs, or even a denial of coverage. Learn more about your guaranteed issue rights before selecting a plan.

As you look at the current costs of the different plans available in your area, keep in mind that your costs may rise over time. Ask your State Farm agent if the policy you choose has attained-age pricing (pricing that goes up each year as you age), issue-age pricing (pricing based on your age at the time you sign up), or community pricing (pricing that may go up, but not based on age). You should also ask if you’re eligible for any discounts.

Unique Benefits and Drawbacks of State Farm Medicare Supplement Insurance

Benefits of State Farm Medicare Supplements

  • Bundling: State Farm’s business focus is its auto insurance, and it also offers home, life, and a variety of other policies, not to mention banking. For those who have some other form of State Farm insurance, getting both policies with State Farm can mean fewer separate bills to different companies. Moreover, depending on which policies you have, you may qualify for a bundle discount. 
  • Agents: State Farm is famous for its customer service, led by its many local agents. There are over 19,000 independent agents across the nation, and chances are good that one is right down the street from you. In densely populated areas, you may even have your choice of different agents within the same town. Having contact with your local State Farm agent can make your shopping experience more personal and convenient than it would be with many other companies.

Drawbacks of State Farm Medicare Supplements

  • Excluded States: State Farm is an exceptionally large insurance provider that operates nationwide and provides about 100 distinct products. Given these statistics, it’s surprising that the company still excludes five different states from its Medigap market. Presumably, the exclusions were based on profitability or logistical issues. Those in New York, New Jersey, Connecticut, Rhode Island, and Massachusetts must look elsewhere to meet their Medicare Supplement needs.  
  • Confusing Options: State Farm offers both Medicare Supplement Insurance plans and other supplemental plans. It isn’t in and of itself a bad thing that the company offers a form of secondary insurance that isn’t regulated by Medicare. However, the website can get confusing due to the similarity of the names of these two unrelated plan categories. Make sure you’re looking at the right item when using the website.  
  • Class Action Suit: State Farm was named in a complicated class-action lawsuit in an Illinois federal court in 2018. The company denies that the allegations of racketeering were true, but it did agree to a settlement before trial. It was also involved in a related suit in 1999 with the same class of customers. The allegations and lawsuits may be concerning to some consumers.

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Customer Reviews of State Farm Medicare Supplement Plans

Reviews of State Farm are plentiful online. Car insurance is, by far, still State Farm’s biggest business, and the majority of reviews reflect that fact. Reading car insurance reviews can give you an idea of how State Farm operates as a business, but keep in mind that car insurance is far less regulated than Medicare Supplement Insurance.

We took the overall review scores of the State Farm Corporate Headquarters from Google reviews, the Better Business Bureau (BBB), and Trustpilot and averaged them, resulting in an average customer rating of 2.4 / 5 stars. Trustpilot reviews were predominantly negative, while reviews on other platforms were much more mixed or positive.

Positive Reviews from State Farm Customers

Many State Farm customers leave reviews on the Google profile of their local State Farm agent rather than on the State Farm Headquarters profile. Overall, it seems 4- and 5-star ratings are extremely common for local agents, meaning that customers typically rate their local agents more highly than they do the company headquarters.

Customers who are happy with their insurance- whatever kind- express their appreciation for the personal touch of shopping with a neighborhood agent. One customer in Illinois wrote to thank her local agent’s staff for “always making us feel like we matter and aren’t just a number.” Another Illinois customer commented that a State Farm employee was “calming and knowledgeable” and that it was “a relief to speak with someone able to get me through a  difficult situation.” Words like “affordable” and “kind” also come up repeatedly.

Negative Reviews from State Farm Customers

Many negative reviews of State Farm specifically mention the way car insurance claims are handled- how much is paid, how fast it’s paid, and more. Customers interested in a Medicare Supplement plan can rest assured that the kind of ambiguity that surrounds the automobile claims process isn’t really a problem with Medicare Supplement Insurance due to strict regulations. However, complaints about customer service may be relevant.

On Google reviews, one negative reviewer mentions that an agent “refused to listen” to her and that she had to call the company’s main claims line due to the agent’s unwillingness to help. Similar complaints of being ignored or of delays in communication appear multiple times for different agents. Another repeated complaint includes non-customers who are frustrated by cold-calling and excessive unsolicited mailers from State Farm. One consumer on Google reviews expressed his frustration by writing, “we ask every time to be left alone, they don’t seem to get the hint.”

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