Colonial Penn Medigap Plans Review
Colonial Penn offers a variety of Medigap plans for eligible Medicare beneficiaries.
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Colonial Penn’s Medigap plans offer a variety of benefits to seniors living across the country. Just be aware that Colonial Penn does things a little differently than Humana or Blue Cross Blue Shield. If you want a quote or want to apply for coverage, you’ll need to talk to someone on the phone. For some, that’s a drawback, but not needing to navigate a website is refreshing for others.
For this review, our team spent over 50 hours researching and evaluating Colonial Penn’s Medigap plans and comparing them to our top Medigap carrier picks. We evaluated the carrier for important factors like plans offered, availability, customer service, costs, and additional benefits. Below, we cover everything you need to know about Colonial Penn to decide if their Medicare supplement insurance is right for you.
Getting to Know Colonial Penn
Colonial Penn Life Insurance Company (also known as Colonial Penn) was founded more than 50 years ago by AARP co-founder Leonard Davis. The company has long been known for selling life insurance products right to consumers.
They specialize in whole life insurance policies for adults aged 18 to 85. But, Colonial Penn also offers Medicare supplement plans through a partnership with Bankers Life and Casualty and Washington National Insurance Company.
To give you an idea of the company’s size, Bankers Life paid out insurance claims to more than 202,000 Medicare supplemental insurance policyholders in 2022.1
The Pros and Cons of Colonial Penn
Pros About Colonial Penn
- They offer seven Medigap plans (what’s actually available to you may vary by state)
- They allow access to all providers that accept Medicare patients
- They provide permanent coverage, even if you develop health problems later on
- No networks or referrals required
- Offers coverage that travels with you
- Agents travel to your home for a personalized approach
Cons About Colonial Penn
- You can’t get online quotes
- Policies are not available in Massachusetts
Overview of Colonial Penn’s Medigap Plans
The chart below outlines the seven Medigap plans that Colonial Penn offers and the benefits of each plan to help you start your search. Note: Medigap Plan B is only available in Pennsylvania, and Plans C and D are only offered in New Jersey.
| Benefits | A | B | C | D | F* | G* | K | L | M | N |
|---|---|---|---|---|---|---|---|---|---|---|
| Part A coinsurance hospital costs up to an additional 365 days after Medicare benefits are exhausted | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| First 3 pints of blood | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Part A hospice care coinsurance or copayment | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Skilled nursing facility care coinsurance | No | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Medicare Part A deductible | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Medicare Part B deductible | No | No | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes |
| Medicare Part B excess charges | No | No | No | No | No | No | Yes | Yes | Yes | No |
| 80% of medically necessary emergency care in a foreign country | No | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
*Plan F and Plan G are also offered as a more affordable high-deductible plan, but the deductible must be met yearly before coverage begins.
**Plans C and F are available only to people who became eligible for Medicare before January 1, 2020.
FYI: You can call 1-800-633-4227 and ask for a free copy of the publication “Choosing a Medigap Policy: A Guide to Health Insurance for People With Medicare” or get a 2024 PDF copy online. For additional assistance, you can call your State Health Insurance Assistance Program (SHIP) and your State Insurance Department.
Which Colonial Penn Medigap Plan Is Right for Me?
Below, we’ll use scenarios and lifestyle preferences to help outline which plan may be the best choice for you.
Seniors with a limited budget who don’t visit the doctor as often
Plan N is the least expensive Medigap plan for seniors in good health who have infrequent doctor appointments. This plan requires a $20 copay for every office visit and a $50 copay for ER visits. Unfortunately, anything you spend on Plan N copayments doesn’t count toward your annual Part B deductible.
Did You Know? Some 12.5 million, or 4 in 10 (42 percent), people in traditional Medicare had a Medigap policy in 2022.2
Seniors who want basic yet comprehensive coverage
Many adults find that Medigap Plan A and Plan B meet their needs. These plans provide hospital coverage, hospice care, and home health care. Plus, they assist with copays for routine doctor appointments. The big thing you miss out on with A and B is skilled nursing facility care coinsurance.
Seniors with chronic health conditions and/or seniors with lots of appointments
Colonial Penn offers a high-deductible option for Plan F and Plan G. If you use medical services a lot, going with one of these plans can save you money. Your monthly premium is lower, and once you meet the deductible, your plan covers 100 percent. This is a great choice if you have frequent follow-ups or specialist appointments or if you expect to need surgeries. Of course, it’s only worth it if you anticipate meeting that deductible. Otherwise, you may be better off with regular Plan F or Plan G. Plan G is the most chosen Medicare Supplement coverage; it covers all out-of-pocket cost sharing except the Part B deductible.3
FYI: Medigap plans are standardized. Plan A from Humana, another carrier we’ve reviewed, offers the same coverage as Plan A from Colonial Penn. When comparing carriers, you want to focus on the extras, the customer service, and the cost.
Seniors who live in a skilled nursing facility or plan to move into one
Only plans C, D, F, G, and N limit costs associated with skilled nursing facilities. If you have a medical condition or disability that makes it so you’d benefit from a skilled nursing facility now or in the future, one of those plans could help you save money.
Seniors with the travel bug
Love to travel? Plans C, D, F, G, M, and N also provide international emergency coverage. If you have family overseas that you like to visit or simply plan to see the world during retirement, obtaining that coverage makes a lot of sense.
Pro Tip: If you’re planning on travel, consider buying travel insurance in case of medical emergencies. Check out the best travel insurance for seniors before you head on your next adventure.
How Much Do Colonial Penn Medigap Plans Cost?
Colonial Penn does not offer online quoting like Cigna and Aetna. So, the only way to find out the cost is to fill out a contact form and have an agent call you or visit your home. While that might sound convenient if you prefer phone vs. online, it could very well lead to ongoing solicitation efforts. We all know how tough those can be to deal with! If excellent customer service matters to you, we rated Cigna as having the best; their customer service is based in the U.S. and is available via phone 24/7, 365 days a year.
We’ve seen it suggested that Colonial Penn’s rates are higher than those of other carriers we’ve reviewed, like Aetna. However, the only way to know for sure would be to give Colonial Penn a call. For comparison, we rated Humana as the best value for low-income seniors seeking an affordable Medigap plan (they also offer you a household discount of up to 12 percent!).
If you decide to call, you need to ask about more than just premiums for your first year. Find out how they handle rate increases and what those increases might look like for you.
Policy pricing will follow one of these methods:2
- Community rated: Everyone receives the same premium, no matter their age. These plans are often the most cost-effective over time.
- Issue-age rated: Your premium is based on your age when you buy the policy. For most Medigap users, that’s 65. Prices will increase with inflation.
- Attained-age rated: Your premium starts lower and increases as you age. These tend to be the most expensive plans over time.
Nine states (AR, CT, ID, MA, ME, MN, NY, VT, and WA) currently require premiums to be community-rated among policyholders ages 65 and older. Four states — Arizona, Florida, Georgia, and Missouri — permit issue-age rating but not attained-age rating. The majority of states (37 and Washington, D.C.) allow any rating system.2
Still deciding if a Medigap plan is worth the cost? Watch our video below with Medicare expert Danielle Roberts on how Medigap plans can help protect your savings.
How to Buy a Colonial Penn Medigap Policy
The best time to purchase a Medigap policy is during your six-month Medigap open enrollment period. During this time, you have access to the best prices and policy options. Open enrollment starts on the first day of the month when you’re 65 or older and enrolled in Medicare Part B.
You can still purchase a Medigap policy after open enrollment. The difference is that the company will use medical underwriting, which means taking a close look at your medical history. For many seniors, this limits the policy options and affects rates. That’s why we think it’s best to enroll when you’re first eligible.
Did You Know? Plans C, F, and High-Deductible F are only available to individuals who were first eligible for Medicare before Jan. 1, 2020.3
If you want to enroll with Colonial Penn (or just get more information), you can call 888-910-3133 or follow the steps below to have an agent contact you.
- Visit the Bankers Life Medicare Supplement Insurance page. They sell the Medigap policies in partnership with Bankers Life and Washington National Insurance Company. Click on “Get a Quote” to get started.
Get a quote for Colonial Penn Medigap plans
- After you click on “Get a Quote,” a dropdown will appear with a contact form.
Filling out your contact form for Colonial Penn Medigap insurance
By filling in your info and hitting “Submit,” you’re permitting Bankers Life agents to call you. While this is necessary to get a quote and move forward with purchasing a policy, it may be frustrating if you decide to go with another carrier; Bankers Life might continue to call and check in with you.
- When the agent calls you, you need to get as much information as you can. The following questions are helpful to ask:
- What policies are available to me based on where I live?
- Can you give me quotes for all of my different plan options?
- How are rate increases calculated?
- Which plan would you recommend for me?
- Are any discounts available?
- Next, we recommend researching some other Medigap carriers and comparing their costs, customer service, and any extras to Colonial Penn’s.
- Use what you’ve learned to make a final decision. If you choose Colonial Penn, communicate your decision with your agent. They will provide you with the next steps so that you can officially apply and purchase a policy. You’ll also find out your payment options, such as checks, money orders, or bank withdrawals.
Competition
It’s best to compare your options before making your decision. Here is how Colonial Penn stacks up against the competition:
Colonial Penn vs. Cigna
Cigna has four plans compared to Colonial Penn’s seven. Customers get a 5 percent enrollment discount, which is not offered at Colonial Penn since you have to call to enroll. Customers can enroll online easily with Cigna. Cigna also has a 24/7 health information line and offers additional supplemental insurance for prescriptions. To learn more, read our Cigna Medigap review.
Colonial Penn vs. Blue Cross Blue Shield
At BCBS, you get instant quotes online. Plus, re-enrollment is automatic each year. Some of their plans offer add-on hearing, vision, prescription, and dental plans, as well as a SilverSneakers membership. They also have a 24/7 nurse line and health and wellness discounts through Blue365. Check out our full Blue Cross Blue Shield Medigap review for more details.
Colonial Penn vs. Humana
Humana offers a 6 percent online enrollment discount (and up to a 5 percent household discount) and dental and vision add-ons. Based on your age, you could have up to eight Medigap plans with Humana to choose from, and you get the free SilverSneakers fitness program and 24/7 customer service. Visit our Humana Medigap plans review for more details.
Our Methodology
Our researchers spent over 50 hours researching, reviewing, and analyzing Colonial Penn’s Medigap coverage. In our analysis, we evaluated rates, value, customer support, customer feedback, and more. Below are some of the criteria we took into consideration:
- Cost and premiums: Colonial Penn’s monthly premiums were evaluated and compared to other companies. The evaluation included out-of-pocket costs like copayments and deductibles and the way they calculate premiums (such as issue-age rated, etc).
- Plan options and coverage: The number of plans offered and their state availability was evaluated in comparison to other insurance carriers.
- Customer service: Insurance policies can be confusing to understand, which is why good customer service is important. We checked customer support availability and modes of contact, along with customer reviews and complaints.
- Additional benefits: Extra perks are always a bonus and add value to a policy. We looked at what value-added services Colonial Penn offers. These can range from SilverSneakers memberships to discounts on vision, dental, or fitness.
Final Thoughts on Colonial Penn
Colonial Penn and Bankers Life use knowledgeable insurance agents to provide quotes and sell their Medigap policies. While some might appreciate that personalized touch, for others, it just means the research will take some extra time. You’ll also need to hand over your contact information. Other popular Medigap carriers we’ve reviewed, including Blue Cross Blue Shield and Aetna, make quotes instantly available online, and you can get those quotes anonymously.
If you feel wary of handing out your contact info or prefer the online shopping experience, you might want to pass on Colonial Penn. But if you like the thought of handling it all over the phone, then Colonial Penn is worth looking into. Colonial Penn is best for aging adults who prefer smaller insurance carriers and just want standardized Medigap coverage.
Frequently Asked Questions About Colonial Penn Medicare Supplement Insurance
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Can you be denied a Medigap policy?
If you enroll during your open enrollment period, a company must sell you a Medigap policy regardless of your health issues; you cannot be denied coverage. However, if you wait and enroll after that window ends, a company can charge you higher rates or deny coverage outright.
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Why should I purchase a Medicare supplement insurance policy?
Medigap policies help you cover the out-of-pocket medical expenses that Original Medicare Part A and Part B stick you with. These costs include copays, deductibles, and coinsurance.
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Can I lose my Medigap coverage?
In general, no, you cannot lose your Medigap coverage, because it’s guaranteed to be renewable. However, your insurance company could drop you if you fail to pay premiums, if you provided false information on your application, or if the company goes bankrupt.
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What happens to my policy if I move to another state?
You should not experience any changes as long as you still have Original Medicare. However, Medigap policies differ between states. So, contact your insurance company to know what is available in your new location.
Bankers Life. (202). What is Medicare Supplement insurance?
KFF. (2024). Key Facts about Medigap Enrollment and Premiums for Medicare Beneficiaries.
OliverWyman. (2024). 4 Reasons Seniors are Choosing Medigap Insurance.
Medicare.gov. (2021). What's Medicare Supplement Insurance (Medigap)?
Bankers Life. (2021). What is Medicare Supplement insurance?
CNO Financial Group. (2019). Bankers Life Now Sells Medicare Supplement Plan D Insurance.