USAA is a financial services company serving current and former U.S. military members. Its services include banking, investing, retirement and insurance. USAA offers Medicare Supplement Insurance, or Medigap, in 45 states and Washington, D.C.

You need to be a USAA member to buy most USAA products. Membership is free, but it’s available only to current and former U.S. military members, their spouses and children. However, USAA Medicare Supplement Insurance is considered a USAA life insurance product, and individuals without a military association can apply for USAA life insurance products.

Here’s what you need to know about USAA Medicare Supplement Insurance.

USAA Medicare Supplement Insurance pros and cons
USAA’s Medigap offerings have advantages and disadvantages.

Pros

Cons

Minimal member complaints. Complaint rates for USAA Medigap policies are less than half the market average.

Financial strength. USAA has some of the health insurance industry’s highest financial strength ratings, so there’s little doubt that it can meet its obligations.

Military-focused advice. Because USAA members have military connections, it offers tools and resources tailored for current and former service members’ financial issues and questions.

Limited plan selection. USAA offers only Medigap Plan A, Plan G and Plan N for new Medicare members in most states, plus Plan F for those who qualify.

Prices can be high. USAA policies were all at least 40% more expensive than the lowest-priced alternative in quotes obtained for this review.

Few discounts and perks. USAA doesn’t match competitors’ offerings for premium discounts or perks, such as gym memberships or hearing and vision products.

» MORE: Best Medicare Supplement Insurance companies

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Available Medicare Supplement Insurance plans
USAA generally offers three Medicare Supplement Insurance plans for purchase by any Medicare member:

Medigap Plan A — the basic benefits included in every Medigap plan without any extras.

Medigap Plan G — the highest-coverage option available to new Medicare members.

Medigap Plan N — a plan with lower premiums but higher copays.

USAA also offers Medigap Plan F for qualifying beneficiaries who were eligible to enroll in Medicare prior to 2020. Newer Medicare members can’t buy these plans from any company.

USAA offers additional plan types in some states. Select your state on USAA’s website to see the Medigap plan types available in your location.

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Additional benefits
Medigap plans have standardized Medicare benefits, but insurance companies can offer additional perks. While some competitors offer extra benefits like gym memberships or discounts on hearing aids and eyewear, USAA doesn’t publicize similar extras for its Medicare Supplement Insurance policies.

USAA does offer certain perks and discounts on products and services to its members, but these are available regardless of whether the member holds a USAA Medigap policy.

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USAA Medicare Supplement Insurance service area
USAA offers Medicare Supplement Insurance policies in 45 states and Washington, D.C. (USAA doesn’t offer Medigap policies in Massachusetts, Minnesota, New Jersey, New York or Wisconsin.)

USAA covers about 156,000 Medigap beneficiaries and has about a 1.2% share of the total Medicare Supplement Insurance market
[1]
.

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Cost
The following price quotes were obtained for three metropolitan areas representing above-average, average and below-average costs for the most popular Medicare Supplement Insurance, plans (Plan G and Plan N)
[2]
:

Los Angeles: More expensive than average.

Atlanta: Average cost for the U.S.

Dallas: Less expensive than average.

The sections below show pricing information from USAA for a 65-year-old female nonsmoker and reflect “base” pricing with optional discounts removed or factored out whenever the option was available. (Note: Some Medigap prices may be higher for males.)

For comparison, each table also includes the price for the least-expensive option to buy the same plan from other companies, based on information from Medicare.gov. For example, USAA’s price for Medigap Plan A in Los Angeles appears alongside the lowest price on Medicare.gov for all Plan A policies available in Los Angeles to an applicant with identical demographics.

(Prices are current as of February 2023.)

Plan A
On average, USAA’s quoted prices for Medigap Plan A were about 49% higher than the least-expensive Plan A policy in the area.

USAA-quoted price

Medicare.gov lowest price

Los Angeles

$120.02.

$97.

Atlanta

$154.70.

$97.

Dallas

$143.42.

$88.

Plan G
On average, USAA’s quoted prices for Medigap Plan G were about 52% higher than the least-expensive Plan G policy in the area.

USAA-quoted price

Medicare.gov lowest price

Los Angeles

$133.79.

$128.

Atlanta

$221.34.

$101.

Dallas

$116.93.

$89.

Plan N
On average, USAA’s quoted prices for Medigap Plan N were about 65% higher than the least-expensive Plan N policy in the area.

USAA-quoted price

Medicare.gov lowest price

Los Angeles

$128.01.

$98.

Atlanta

$164.90.

$77.

Dallas

$107.56.

$71.

Discounts
Some Medicare Supplement Insurance companies might offer premium discounts to qualifying enrollees who, for example, bundle multiple kinds of insurance, set up autopay or live with another adult who has a Medigap policy from the same company.

USAA recently started offering discounts when two or more USAA Medigap members live in the same household in certain locations. The company will be adding more discounts in additional states, a USAA representative said in an email.

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USAA’s spending on care
75.6% for member benefits
Medicare Supplement Insurance companies must report data on the premiums they collect and how much they spend to provide benefits for members.

Based on the most recent year of data, USAA Medicare Supplement Insurance plans spend about 75.6% of premiums on member benefits
[3]
. (The other 24.4% goes to overhead expenses like administrative costs, marketing, salaries and commissions.)

For comparison, the average for all companies is 77.3%. The minimum required by law for individual Medigap policies is 60%
[4]
.

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Member complaints
50% fewer complaints than average
Members file complaints about Medicare Supplement Insurance policies from USAA half as often as the average for all Medigap plans. This is according to three years’ worth of data (2019-2021) from the National Association of Insurance Commissioners for USAA
[5]
.

USAA’s complaint rate across all of its insurance offerings is even lower, with a complaint rate for all policy types about 90% below the average for all insurance companies over the same three years of data.

(Complaint rates are current as of February 2023.)

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Customer service
Here’s how USAA Medigap members can contact customer service:

Call USAA customer support at 210-531-8722 or 800-531-8722, Monday to Friday, from 7:30 a.m. to 8:00 p.m. Central time.

Chat with a virtual assistant on USAA’s Contact Us website.

Contact USAA through Facebook.

Contact USAA through Twitter.

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Third-party ratings
There are a few companies that weigh in on customers’ experiences with insurance companies or the strength of the company in question, and we’ve included two here:

AM Best Financial Strength Rating: A++
AM Best is a credit rating agency that specializes in the insurance industry. In April 2022, AM Best affirmed its Financial Strength Rating of A++ (Superior) for USAA and its property/casualty and life/health subsidiaries
[6]
.

An A++ rating in this category indicates that AM Best has a superior ability to meet its ongoing insurance obligations, according to AM Best.

Moody’s Investors Service: Aa1
Moody’s Investors Service is a credit rating agency that evaluates the financial strength and creditworthiness of public and private organizations of all types. In May 2021, Moody’s affirmed its Aa1 insurance financial strength rating and updated the rating outlook from negative to stable for USAA Life Insurance Company — the USAA subsidiary responsible for Medicare Supplement Insurance
[7]
.

An Aa1 rating indicates that Moody’s considers USAA’s obligations to be a very low credit risk and that USAA is on the higher end of this rating category. A stable outlook indicates that Moody’s expects a low likelihood of the Aa1 rating changing over the medium term.