Colonial Penn is a private company administering Medicare supplement insurance plans that are known as Medigap. The plans may help a person pay uncovered Medicare healthcare costs, such as copays and deductibles.
Monthly premiums are the only Medigap expense. Prices vary among plans and depend on several factors, such as an applicant’s age and health.
This article introduces Colonia Penn before discussing Medicare and Medigap. Finally, it examines the coverage, availability, and cost of the Colonial Penn Medigap plans.
We may use a few terms in this piece that can be helpful to understand when selecting the best insurance plan:
- Deductible: This is an annual amount that a person must spend out of pocket within a certain time period before an insurer starts to fund their treatments.
- Coinsurance: This is a percentage of a treatment cost that a person will need to self-fund. For Medicare Part B, this comes to 20%.
- Copayment: This is a fixed dollar amount that an insured person pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Colonial Penn Life Insurance Company have been in business for more than 60 years and are licensed in 49 states. It is a subsidiary of CNO Financial Group based in Carmel, Indiana.
Colonial Penn administer 12 Medigap policies, as well as life insurance.
Medigap is Medicare supplement insurance that fills the coverage gaps of original Medicare. While original Medicare — parts A and B — cover a substantial portion of healthcare costs, beneficiaries must pay deductibles, copays, and coinsurance. These expenses are called coverage gaps.
In addition to helping with out-of-pocket costs of original Medicare, some Medigap plans also provide emergency care when a person is traveling out of the country.
Medigap works with original Medicare, but not with Medicare Advantage. The plans also do not pay uncovered Part D costs.
This online tool can help a person find a Medigap plan in their area.
Colonial Penn administer 10 Medigap plans, with high deductible versions of two plans. The following designations identify the plans: A, B, C, D, F, high-deductible F, G, high-deductible G, K, L, M, and N.
The plans are standardized, meaning the features of Medigap Plan A in one state are identical to its features in another state. The exceptions are for programs in Massachusetts, Minnesota, and Wisconsin, where these states standardize Medigap plans differently.
The table below shows the deductible and copays or coinsurance for certain Colonial Penn plans in Philadelphia, Chicago, and San Francisco for 2021.
| Location | Deductible | Copay or coinsurance |
|---|---|---|
| Philadelphia, PA: Zip 19019 Plan A | Hospital (Part A): $1,484 Medical (Part B): $203 | $0 |
| Chicago, IL: Zip 60007 Plan M | Hospital (Part A): $742 (50% of Part A deductible) Medical (Part B): $203 | $0 |
| San Francisco, CA Zip 94016 Plan N | Hospital (Part A): $0 Medical (Part B): $203 | Generally $0, although some $20 and $50 copays |
Monthly premiums are the only cost that comes with Medigap plans. While the plans have standardized benefits, they do not have standardized costs. For example, the Plan A premium in one state may differ from the premium in another.
Premiums also depend on factors such as a person’s age, sex, and health.
The table below shows premium ranges for three Colonial Penn plans in different parts of the country.
| Location | Plan A | Plan G | Plan K |
|---|---|---|---|
| Philadelphia, PA: Zip 19019 | $73–713 | $128–891 | $52–343 |
| Chicago, IL: Zip 60007 | $73–823 | $106–716 | $50–301 |
| San Francisco, CA: Zip 94016 | $83–696 | $115–960 | $45–202 (Plan F) |
However, Medigap plans administered to new enrollees on or after January 1, 2020, may not cover the Part B deductible. Due to this ruling, people who are first eligible for Medicare on or after January 1, 2020, may not buy Plan C, Plan F, or the high-deductible Plan F.
However, if a person became eligible for Medicare before this date and did not enroll, they may be able to enroll in one of the three plans.
Medicare is the federal health insurance program for older adults and younger people with disabilities. It comprises the four parts below.
Part A
Part A is the hospital insurance component of original Medicare. Aside from hospitalization, it covers:
- hospice
- some home health care
- a short-term stay in a skilled nursing facility
In 2021, the premium for a person who paid tax for 40 quarters is $0. However, the premium is $259 for 30–39 quarters’ tax payments and $471 for people who paid the tax for fewer than 30 quarters.
Part B
Part B is the medical insurance component of original Medicare. It covers:
- preventive services, such as screenings
- medical equipment
- doctor visits
- lab tests
The Part B basic monthly premium in 2021 is $148.50, while the annual deductible is $203. Depending on a person’s income, the premium may increase.
Part C
Part C, or Medicare Advantage, is the alternative to original Medicare, which provides Parts A and B benefits. Most plans include prescription drug coverage, and many offer additional benefits, such as dental and vision care. Private companies administer the plans, and they contract with Medicare to provide the coverage.
Learn more about Medicare Advantage here.
Part D
Part D is the prescription drug coverage for people with original Medicare. Private companies administer this plan, although it is not available to a person enrolled in Medicare Advantage.
Part D costs vary among plans and include a deductible, monthly premiums, copays, or coinsurance. The Part D basic premium is expected to average $30.50 in 2021, according to the Centers for Medicare & Medicaid Services.
Colonial Penn administer Medigap plans and life insurance policies.
Original Medicare, consisting of parts A and B, has out-of-pocket costs, such as deductibles and copays. A Medicare supplement insurance plan, called Medigap, may help pay some of these expenses. Medigap benefits and monthly premiums vary between plans.