Amerigroup Medicare Review

Pros Explained

• Focus on public insurance programs: Amerigroup exclusively offers public health insurance, including Medicare, Medicaid, and other state-based insurance. The company’s focus on public programs gives it depth of experience and demonstrates its commitment to people who qualify for public insurance.
• Several plan options: Amerigroup offers comprehensive Medicare Advantage plans, including several types of Special Needs Plans. It also offers supplemental coverage for members who don’t want comprehensive managed care coverage. 
• Backed by Elevance Health: Amerigroup is a multi-state health plan but is backed by one of the nation’s largest health insurers. This relationship gives Amerigroup even stronger financial footing, though, on its own, it also gets excellent financial strength ratings.

Cons Explained

• Limited geographic coverage: Amerigroup offers Medicare insurance in seven states but only offers its Medigap plans in Arizona and Texas. 
• Average quality ratings: Though it’s hard to get the top Star Ratings from CMS, Amerigroup plans average just above 3.0 out of 5.0, making it a squarely average plan in terms of quality.

Available Plans

Amerigroup offers several Medicare plans, including Medicare Advantage, Medicare Supplement Insurance (Medigap) Plans, and Stand-Alone Prescription Drug Plans.

Medicare Advantage Plans

Amerigroup offers Medicare Advantage HMO plans, which include all the benefits of Original Medicare combined with coverage for services excluded from Original Medicare. Many Amerigroup HMO plans include coverage for prescriptions as well as dental and vision services.

These plans also offer low premiums, low deductibles, and low copays as well as 24/7 telehealthcare and free fitness benefits. HMOs typically require members to choose a primary care doctor who acts as a gatekeeper to specialists you might need.

Special Needs Plans

Special Needs Plans (SNPs) are designed for people with specific conditions or lower incomes and qualify for Medicaid and Medicare. While coverage and benefits vary, these plans may also include rides to health appointments, fitness benefits, and even Medicare Part B premium coverage. Amerigroup offers three types of SNPs, all of which count as Medicare Advantage HMO plans:

• Chronic Conditions Special Needs Plan (C-SNP): People with diabetes, cardiovascular disease, or chronic heart failure may qualify for a C-SNP.
• Dual-eligible Special Needs Plan (D-SNP): D-SNPs are for people who qualify for Medicaid based on their income along with being eligible for both Medicare Part A and B.
• Institutional Special Needs Plan (I-SNP): I-SNPs are for people who have both Medicare Part A and B and live in a facility such as a nursing home or assisted living community.

Medicare Supplement (Medigap) Insurance Plans

Medigap plans are supplemental plans that cover some of what Original Medicare doesn’t. Amerigroup offers Medigap plans in Arizona and Texas.

Stand-Alone Prescription Drug Plans 

Prescription Drug Plans cover drug costs, which Original Medicare does not. These plans complement Original Medicare or other supplemental coverage but are usually not compatible with Medicare Advantage plans because most Medicare Advantage plans include prescription coverage.

Amerigroup contracts with a network of more than 66,000 pharmacies, including 24,000 preferred pharmacies which may offer better pricing for Amerigroup members. As always with health insurance plans, specific costs vary by plan and by state.

Extra Benefits 

Many Amerigroup Medicare Advantage plans include extra dental, vision, and hearing coverage, membership in the SilverSneakers fitness program, and over-the-counter allowances.

For lower-income members, Amerigroup also offers special discounts, including low or zero-dollar premiums, copayments as low as $0, telehealth visits, and allowances for transportation.

Customer Service

Prospective members can call 877-470-4131 between 8 a.m. and 8 p.m., seven days a week.

Medicare Advantage and Medigap

Current Medicare Advantage and Medicare Supplement Insurance (Medigap) members can call member services at 866-805-4589.

Prescription Drug Plans and Special Needs Plans

Medicare Prescription Drug Plan members in either HMO or Special Needs Plans call their local member services lines:

• Arizona: 888-816-2790
• New Jersey: 844-765-5160
• Tennessee: 877-411-0929
• Texas: 844-765-5165
• Washington: 844-812-2275

Medicare Prescription Drug Plan members in an HMO-POS or Chronic Special Needs Plan call their local member services line:

• New Jersey: 844-887-6350
• Texas: 877-269-5660

Customer Satisfaction 

The National Association of Insurance Commissioners (NAIC) calculates a complaint index to track customer satisfaction with insurance companies. This index reflects the number of complaints against an insurer relative to its market share. The lower the ratio, the better. A ratio greater than 1.0 indicates that the company had more than its share of complaints lodged against it.

Amerigroup has several subsidiary companies, each with different complaint index results. The Amerigroup plan in Arizona and Texas, for example, had a complaint index of 0 with no complaints in 2021 and 2022. In 2020, this plan had one complaint against it—not against its Medicare Supplement (Medigap) plans—according to NAIC. 

Amerigroup New Jersey had no complaints in 2020, 2021 or 2022.

Third-Party Ratings

AM Best

Credit rating agency AM Best evaluates insurance companies on their financial strength. Not all Amerigroup plans are rated, but those that are received a financial strength rating of A (Excellent). In December 2022, AM Best affirmed this rating for Amerigroup as part of its overall assessment of Elevance Health and its subsidiaries. Elevance Health as a whole received an A (Excellent) rating, indicating the credit agency’s assessment that the insurer is well-positioned to meet its financial obligations.

NCQA

Ratings from the National Committee for Quality Assurance (NCQA), a national health insurance accrediting body, reflect customer satisfaction, members’ access to healthcare services, and the quality of care members receive. Though NCQA rates several of Amerigroup’s Medicaid plans, its Medicare plans did not participate in the 2022 ratings.

J.D. Power

Amerigroup wasn’t specifically noted in J.D. Power’s 2022 U.S. Medicare Advantage Study, but its parent company, Elevance Health, got seventh place on the study’s overall customer satisfaction index ranking. Anthem (now Elevance Health) scored 791 points out of 1,000, putting it just below the industry average of 809.

Medicare Star Ratings

Only four Amerigroup plans received Star Ratings from the Centers for Medicare and Medicaid Services (CMS), a standard way to assess a Medicare health plan’s quality. In the 2022 ratings, these plans received 3.0 and 3.5 stars out of 5.0, averaging 3.25. Several other Amerigroup plans were too new to be rated or did not have sufficient data available to be included.

Cost

Health plan costs include premiums, deductibles, copayments, and coinsurance, all capped by an out-of-pocket maximum that sets a limit for the most a member would have to pay in a year. The best way to find specific costs is to search by zip code, carrier, and plan type on Medicare.gov. To illustrate Amerigroup’s pricing, average pricing for its 2022 Medicare Advantage HMO plans in Tennessee include:

• Monthly Premiums: Premiums range from $0 to $30.80 and average $23.03.
• Annual Deductibles: These plans have either $0 annual deductible.
• Out-of-pocket Maximums: Out-of-pocket cost caps range from $4,900 to $6,700, averaging $6,033. 

Competition: Amerigroup vs. Aetna

Amerigroup competes with dominant plans in different states, but Aetna is one of the largest plans in several states in which Amerigroup operates, including Iowa, New Jersey, and Texas. Aetna covers a much wider geography, but on a head-to-head comparison where both plans operate, Aetna wins for quality. Its average Star Ratings are higher than Amerigroup’s. 

Amerigroup’s parent company, Elevance Health, trailed Aetna by just five points in the J.D. Powers 2022 Medicare Advantage study. Amerigroup has more types of Special Needs Plans, so for people with special needs, it's likely the better option. Costs vary, so it’s important to compare specific plans in specific areas for a direct comparison. For quality, although Amerigroup’s not perfect and Aetna's not bad, Amerigroup only barely comes out on top.

Final Verdict

Amerigroup is a reasonable Medicare insurance option, especially if you’re looking for a Special Needs Plan in the areas where Amerigroup offers them. Backed by Elevance, Amerigroup has the depth of resources of an even bigger plan. It has a range of options and extra benefits, but you may be able to do better in terms of quality ratings.

Frequently Asked Questions

What company owns Amerigroup?

Elevance Health (formerly Anthem) is the parent company of Amerigroup. Amerigroup is one of Elevance Health's several affiliates offering Medicare Advantage plans. Elevance Health has many brands offering health insurance and managed care.

How many states is Amerigroup in?

Amerigroup offers Medicaid health plans in Georgia, Iowa, New Jersey, Tennessee, Texas, and Washington. Its Medicare plans are available in Arizona, Iowa, New Jersey, New Mexico, Tennessee, Texas, and Washington.

Is Amerigroup a form of TennCare?

TennCare is the name of Tennesee's Medicaid program, and Amerigroup plans offer services, support, and coverage for TennCare members. If you qualify for TennCare, you can choose Amerigroup as your health plan.

Methodology

Even Medicare health plans with a national presence can vary locally in their cost, quality, and customer satisfaction. To evaluate Medicare plans, we looked at health insurance industry ratings from the primary accrediting agency for health plans, NCQA, and the Medicare Star Ratings from CMS, the regulatory agency that oversees Medicare. We included the National Association of Insurance Commissioners’ complaint index and AM Best’s financial stability ratings. We also considered information from the companies on their programs and strategies.