Aetna vs. Mutual of Omaha Medicare: Which Is Better?

When researching the right healthcare coverage, Medicare beneficiaries have many choices. Aetna and Mutual of Omaha stand out as two of the most respected Medicare insurance companies in the United States. Both offer excellent Medicare coverage, but each has its strengths and drawbacks.

Editor’s Summary:

• Aetna offers more plan options
• Mutual of Omaha offers slightly less expensive plans

Let’s compare some key differences between Aetna’s and Mutual of Omaha’s Medicare plans.

Aetna Medicare Plan Highlights

Aetna Insurance Review

Pros

• Offers Medicare Advantage plans, so beneficiaries can choose how to receive their Medicare benefits
• More than 3.1 million Medicare Advantage plan enrollees
• Ranks second in customer satisfaction for telehealth services
• Aetna is the third largest for-profit provider of Medicare Advantage plans in the United States, increasing its Medicare Advantage enrollment by 323,000 in 2022
• Certain Medicare Advantage plans offer a SilverSneakers membership

Cons

• Smaller coverage area than Mutual of Omaha

Highlights:

• Policy Types: Medicare Advantage plans, Medicare Supplement insurance (Medigap), Prescription Drug Plans (PPDs)
• Availability: 50 states (varies by state and insurance plan)
• Coverage Limit: varies
• Deductible: varies
• Maximum Annual Benefit: varies
• Waiting Period: varies
• Providers In-Network: 1.2 million
• Covers Telehealth: yes
• Policy Management Options: website, phone, mobile app

Mutual of Omaha Medicare Plan Highlights

Mutual of Omaha Insurance Review

Pros

• Offers an additional benefit rider for Medicare Supplement plans that give discounts on specific health and wellness services
• Household discounts available
• Offers a fitness membership called Mutually Well, similar to SilverSneakers

Cons

• Does not offer Medicare Advantage plans, which limits your options for Medicare coverage
• Offers fewer Medicare Supplement plans than Aetna

Highlights:

• Policy Types: Medicare Supplement insurance (Medigap), Prescription Drug Plans (PPDs)
• Availability: 49 states (varies by state and insurance plan)
• Coverage Limit: varies
• Deductible: varies
• Maximum Annual Benefit: varies
• Waiting Period: varies
• Covers Telehealth: yes
• Policy Management Options: website, phone, mobile app

Aetna vs. Mutual of Omaha: Medicare Plan Availability

Medicare plan availability varies based on your zip code and type of plan. Here’s what Aetna and Mutual of Omaha offer.

Prescription Drug Plans

Aetna’s prescription drug plan options include SilverScript Choice and SilverScript Plus. Mutual of Omaha also offers two options: Mutual of Omaha Rx Value and Mutual of Omaha Rx Plus. All four plans offer home delivery.

The plans are similar, but beneficiaries pay slightly less in copays for Tier 2 drugs through SilverScript Plus than Mutual of Omaha Rx Plus. Choosing a plan to fit your needs involves carefully evaluating each plan’s drug formularies (lists of drugs covered).

You’ll want to verify whether your medications and preferred pharmacy are covered and assess your out-of-pocket costs for each tier.

Medicare Advantage Plans

Aetna’s Medicare Advantage plans include HMO plans, PPO plans, and dual SNPs (special needs plans). Plans vary by location. Aetna’s Medicare Advantage plans include perks such as SilverSneakers, a 24/7 hotline, and home delivery for prescriptions. Advantage plans are available in 49 states with Aetna.

As of 2020, Mutual of Omaha no longer offers Medicare Advantage plans.

Medicare Supplement Plans

Medicare Supplement plans (Medigap plans) help seniors control their out-of-pocket expenses for Medicare Part A and Medicare Part B services. Both Aetna and Mutual of Omaha offer these plans.

Medicare Supplement plans help cover:

• Part A deductible
• Part B deductible
• Copays
• Part B excess charges
• Coinsurance

There are ten standardized Medigap plans. Standardized means Plan A benefits are the same in Oregon as in Ohio, across all insurance companies. Therefore, Mutual of Omaha Medicare Supplement plans offer the same benefits as Aetna’s Medicare Supplement plans (as long as you are comparing the same plan letter).

Aetna offers more Medigap plans, but Mutual of Omaha has a broader coverage area. Both Medicare Supplement insurance companies offer Plan G, becoming the most popular Medigap plan among seniors. Neither company sells Plans C, K, L, or M.

• Aetna
  • Medigap Plans Offered: A, B, D, F, G, N, and high deductible G
  • States Available: 43
  • States Not Available:
    – Alaska
    – Connecticut
    – Hawaii
    – Maine
    – Massachusetts
    – New York
    – Washington
    – Washington, D.C.
• Mutual of Omaha
  • Medigap Plans Offered: A, F, G, N, and high deductible G
  • States Available: 49, plus Washington, D.C.
  • States Not Available: Massachusetts
  • Offers an additional benefit rider, which includes benefits such as vision discounts through EyeMed and fitness programs through Mutually Well

Aetna vs. Mutual of Omaha: Medicare Plan Costs

Here’s a cost comparison for Medigap Plan G for Aetna and Mutual of Omaha in a few different cities.

Lexington, KY (zip 40201)
Mutual of Omaha: $178.63
Aetna: $181.34

Ogden, UT (zip 84201)
Mutual of Omaha: $221.93
Aetna: $148.19

Hoboken, NJ (zip 07030)
Mutual of Omaha: $153.95
Aetna: $173.93

These are sample numbers for a 65-year-old nonsmoking female, but depending on the insurance company’s pricing method, the cost for Mutual of Omaha Medicare Supplement plans is comparable to or lower than that of other Medicare Supplement insurance companies.

Note: Pricing is not standard among Medicare Supplement insurance companies. For example, the cost of Medigap plans varies based on zip code, gender, health history, age, and other factors.

Aetna vs. Mutual of Omaha: Medicare Star Ratings

The Centers for Medicare and Medicaid issue star ratings yearly for insurance companies that offer Medicare Advantage and prescription drug plans. A five-star rating is the highest.

In 2022, Aetna’s star rating for Medicare Advantage plans, including prescription drug coverage, was 4.29 out of 5 stars.

Mutual of Omaha’s Part D prescription drug plan earned 3.5 out of 5 stars.

The ratings measure each insurance carrier in the following areas:

• Customer service
• Managing chronic conditions
• Subscriber complaints
• Subscriber experience with the plan
• Drug safety
• Accuracy of drug prices
• Keeping members healthy
• Changes in the drug formulary

Aetna vs. Mutual of Omaha: Enrollment Process

Whether you choose Aetna or Mutual of Omaha, the ideal time to join a Medicare plan is when you are first eligible. It is best to enroll in Medicare Part A and Part B first (when you become eligible at age 65) and then move on to choose your supplemental coverage.

Let’s take a quick look at enrollment periods based on plan type.

Medigap (Medicare Supplement)
– Medigap Open Enrollment: a six-month period that begins once you have signed up for Medicare Part B

Medicare Advantage (Part C)
– Initial Enrollment: when you are first eligible for Medicare (90 days prior and 90 days past your birthday month)
– Open Enrollment: Oct. 15 through Dec. 7 annually (this is when you can change your Advantage plan)
– Medicare Advantage Open Enrollment: Jan. 1 through Mar. 31 annually (this is when you can change plans or switch back to Original Medicare)

Prescription Drug Plan (Part D)
– Initial Enrollment: when you are first eligible for Medicare (a seven-month period that begins 90 days before your birthday month and ends 90 days after your birthday month)
– Open Enrollment: Oct. 15 through Dec. 7 annually (this is when you can make changes to your PPD plan)

Note: You can also change your PPD, Advantage, and Supplement plans when certain circumstances occur, such as moving out of a plan’s service area or when you have a change in other insurance coverage. Such circumstances may qualify you for a Special Enrollment Period outside of the standard enrollment periods.

Aetna vs. Mutual of Omaha: Financial Ratings

When choosing an insurance company, it’s essential to consider its ability to pay claims now and in the future.

Aetna and Mutual of Omaha both have strong financial ratings.

Aetna
• A+ rating with Standard and Poor’s and the Better Business Bureau
• A rating with Moody’s and A.M. Best
• A+ with Fitch Ratings

Mutual of Omaha
• A+ rating with A.M. Best, Standard and Poor’s, and the Better Business Bureau
• A rating with Moody’s

Bottom Line

Aetna entered the insurance business in 1853 and has been going strong ever since. Its Medicare Advantage enrollment increased by 323,000 in 2022.

Established in 1909, Mutual of Omaha has sold Medicare Supplement insurance plans since 1966 and has 1.4 million Medigap policyholders.

Each insurance company has good financial strength and offers solid plans. Mutual of Omaha is slightly less expensive, but Aetna has more plan options.

The insurance company that’s right for you is the one that’s available in your area, provides the coverage you need, and is affordable in terms of monthly premiums and out-of-pocket expenses.

Sources
Aetna Medicare Supplement plans by state | Mutual of Omaha company profile | Medicare Star Ratings | Mutual of Omaha Medicare Supplement Review | Medicare Advantage: Enrollment Update and Key Trends | KFF

FAQs

• Who is the largest Medicare Supplement provider?

  The largest Medicare Supplement provider in the United States is UnitedHealthcare. They offer a variety of Medicare plans to fit individuals’ specific needs and are one of the most popular options for seniors. UnitedHealthcare also offers additional services such as prescription drug coverage, vision, and dental coverage.

• How much does Mutual of Omaha Medicare Supplement Plan G cost?

  The average monthly premium for someone enrolled in a Medicare Supplement Plan G through Mutual of Omaha is around $175.

• What percentage of people have a Medicare Supplement Plan?

  According to AHIP, Medicare beneficiaries with Medicare Supplement plans increased from 35.4 percent in 2017 to 40.9 percent in 2021. This is higher than the 38.7 percent recorded in 2020.