by Russell Noga | Updated January 17th, 2024
Deciding between United Healthcare and Blue Cross Blue Shield can be daunting. With this straightforward comparison of the two health insurance giants, you’ll gain clarity on their plan options, pricing, network size, and member satisfaction. No fluff—just the essential information to guide you through understanding the strengths and weaknesses of United Healthcare vs Blue Cross Blue Shield, ensuring your health insurance choice is an informed one.
Key Takeaways
- United Healthcare provides a wide array of plans including medical indemnity, short-term, and GAP insurance, while Blue Cross Blue Shield offers individual, family, and group plans inclusive of group life, disability, and dental insurance; United Healthcare exited the individual/family market reflecting a strategic shift.
- Network coverage and provider access are significant, with United Healthcare partnering with more than 1.3 million providers and 6,500 hospitals, while both carriers have experienced a third reduction in their doctor networks since 2014, including for individual and family plans.
- Financial strength and stability are key indicators of a company’s reliability, with Blue Cross Blue Shield holding an ‘A-‘ credit rating from S&P; United Healthcare’s rating was not available, but its larger market share and presence in more states could offer advantages over Blue Cross Blue Shield.
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Overview of United Healthcare and Blue Cross Blue Shield
United Healthcare and Anthem, which operates Blue Cross Blue Shield plans in many states, are the two primary health insurance providers in the United States. Each boasts a significant market presence and offers a diverse range of services, including various Medicare plans. Nevertheless, their regional market presence and size vary. For instance, Health Care Service Corporation (HCSC) operates Blue Cross Blue Shield (BCBS) plans in five states and is considered the largest customer-owned health insurer in the U.S.
United Healthcare has been actively strategizing to capture a larger market share in recent years, offering an array of plans such as medical indemnity, short-term, and GAP health insurance plans. While United Healthcare has been assertive in its approach, Blue Cross Blue Shield has maintained a steady presence in the market, offering individual, family, and group plans, along with other types such as group life, disability, and dental insurance.
However, the range of services offered by these companies has seen significant changes. For instance, United Healthcare has exited the individual/family market, indicating a strategic shift in the services they offer. This change may have been influenced by the premiums associated with individual and family plans. Moving forward, we’ll explore in detail the specific plan options these two health insurance giants offer.
Plan Options: United Healthcare vs Blue Cross Blue Shield
Both United Healthcare and Blue Cross Blue Shield present a variety of plan options. United Healthcare provides medical indemnity, short-term, and GAP health insurance plans. On the other hand, Blue Cross Blue Shield offers individual, family, and group plans, along with additional types like group life, disability, and dental insurance. It is vital to compare the plans offered by both companies based on your specific needs.
Both companies also offer limited network plans. United Healthcare, for example, provides Core network plans. Notably, Blue Cross Blue Shield has been the predominant PPO carrier since 2018, making it an attractive choice for those seeking a PPO style plan.
Next, we will explore the individual, family, and employer group plans in greater detail.
Individual and Family Plans
When it comes to individual and family plans, it’s interesting to note that Blue Shield’s PPO plans are generally priced higher than comparable PPO plans in the market. For individuals seeking PPO options, Blue Shield is essentially the primary choice available. This is a point to consider when comparing the two providers.
Furthermore, Blue Shield has successfully embraced the Affordable Care Act rollout, establishing itself as the dominant carrier in individual and family plans since 2014. On the other hand, United Healthcare is currently not participating in the California individual/family market and has never maintained a consistent presence in this market.
Let’s now focus our attention on employer group plans.
Group Plans for Employers
When comparing group plans for employers, United Healthcare’s small business plans are competitively priced, especially for full networks. These plans are highly recommended for small businesses due to their pricing. Blue Cross Blue Shield, on the other hand, offers a Preferred Provider Organization (PPO) plan to employers.
In terms of online management services, Blue Cross Blue Shield offers superior services. They have a heavily invested member portal that provides employers with comprehensive account information and administration capabilities. United Healthcare’s online services, while adequate, are not as advanced as those of Blue Cross Blue Shield.
Next, we shall examine the Medicare supplement plans that these companies offer.
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Medicare Supplement Plans
Medicare supplement plans are an important aspect to consider when comparing health insurance providers. If the physician is a participant in Medicare, both United Healthcare and Blue Cross Blue Shield Medicare supplement plans will offer coverage. The reimbursement process is coordinated with Medicare benefits for both insurers.
When it comes to pricing, United Healthcare’s Medicare supplement plans are generally considered more competitive overall. However, Blue Cross Blue Shield’s plans are often better priced for younger beneficiaries. Despite this, Blue Cross Blue Shield currently holds a higher level of customer satisfaction in the Medicare Supplement market.
Next, we’ll compare their Medicare Advantage Plans.
Medicare Advantage Plans
Medicare Advantage plans are another critical aspect to consider. Both United Healthcare and Blue Cross Blue Shield provide coverage for prescription medications in their Medicare Advantage plans. The specific plan offerings and network structures can differ, as Medicare Advantage plans are predominantly HMOs by design.
Interestingly, United Healthcare’s Medicare Advantage plans have generally received higher customer satisfaction ratings from members compared to Blue Cross Blue Shield. To acquire the most accurate quote for Medicare Advantage plans, it’s recommended that consumers input their doctor and prescription information, ensuring that the quote is customized to their healthcare needs.
Let’s next assess their network coverage and provider access.
Network Coverage and Provider Access
Network coverage and provider access are crucial factors when choosing a health insurance provider. United Healthcare collaborates with more than 1.3 million medical providers across the United States, as well as 6,500 hospitals and other care facilities. This extensive network enables them to provide comprehensive healthcare services to their members. However, both companies have been associated with narrow networks.
United Healthcare and Blue Cross Blue Shield do not have a network for individual plans since 2014. The doctor networks for their individual and family plans have decreased by approximately one third. Although United Healthcare previously had a robust network with reputable doctors, they are no longer part of the network. It is commonplace to find that any given doctor or hospital accepts both carriers.
Next, we turn to the pricing and affordability of their plans.
Pricing and Affordability
Cost is a significant factor when choosing health insurance. The average monthly cost for United Healthcare individual plans is $456, and for family plans, it is $1,152. When it comes to group plans, Blue Cross Blue Shield provides a standard-level group plan with a $4,000 deductible, while United Healthcare offers a health plan with no deductible, only copay.
The highest out-of-pocket cost for a United Healthcare Medicare Supplement plan is $8,850 annually. However, there are pricing differences when comparing their Medicare plans. Let’s now examine their customer service and member experience.
Customer Service and Member Experience
Customer service and member experience are paramount when choosing a health insurance provider. The experiences for United Healthcare and Blue Cross Blue Shield are generally similar, with Blue Cross Blue Shield being slightly superior, particularly in the medigap aspect. They are also widely regarded as one of the best in terms of customer service.
However, there has been a notable decline in customer service following the implementation of the ACA, impacting both United Healthcare and Blue Cross Blue Shield. In terms of customer service for employer plans, Blue Cross Blue Shield provides greater local representation in California, whereas United Healthcare, due to its national presence, may have non-local customer representatives servicing multiple markets, potentially impacting the personalized nature of service.
Next, we’ll inspect the additional benefits and services these companies offer.
Additional Benefits and Services
Beyond basic health insurance, both United Healthcare and Blue Cross Blue Shield offer additional benefits and services. One of the unitedhealthcare offers includes wellness programs like fitness programs and rewards for achieving health goals. They also offer telemedicine services through virtual visits with local providers or via their partnership with Doctor On Demand®.
On the other hand, Blue Cross Blue Shield offers:
- Fitness programs
- Resources for healthy eating
- Lifestyle support
- Wellness programs
- Personal care services
- Member discounts
- Financial health services
- Dental and vision plans
- Life insurance
- Exclusive discounts on health and wellness products and services
- Specific plans like Medicare Advantage and Prescription Drug Plans
Additionally, they offer specific plans like Medicare Advantage and Prescription Drug Plans. Next, we shift our attention to their financial strength and stability.
Financial Strength and Stability
Financial strength and stability play a crucial role in health insurance companies, as they have a direct impact on the company’s capacity to settle claims and provide dependable coverage for policyholders. The present credit rating of Blue Cross Blue Shield is ‘A-‘ as per S&P Global Ratings. Unfortunately, the current credit rating of United Healthcare is not accessible at this time.
The factors that contribute to the financial strength rating of a health insurance company include:
- Industry standards and peer comparisons
- The capacity to fulfill claims and financial obligations promptly
- A solid business philosophy along with effective management and operating performance
Let’s now consider the factors to deliberate when making a decision.
Making the Right Choice: Factors to Consider
Choosing between United Healthcare and Blue Cross Blue Shield involves considering several factors. Cost holds the highest significance when making a decision. It is also essential to consider consumer reviews, overall customer satisfaction, plan quality, and the criteria each company uses to select healthcare providers.
While both companies boast extensive health insurance provider networks, Blue Cross Blue Shield maintains a slightly larger network. United Healthcare’s extensive presence in more states and larger market share provides certain advantages over Blue Cross Blue Shield.
Let’s now conclude with a summary of the key points discussed.
Summary
In conclusion, choosing between United Healthcare and Blue Cross Blue Shield involves a careful evaluation of your individual healthcare needs, financial capacity, and personal preferences. Both providers offer a range of plans and services, along with additional benefits and solid financial stability. Therefore, the choice between the two will ultimately depend on the specific requirements and circumstances of the individual or family. Always remember, a well-informed decision is the best decision!
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Frequently Asked Questions
Which health insurance has the best benefits?
Kaiser Permanente is often considered the best health insurance, while Aetna, Blue Cross Blue Shield, and UnitedHealthcare also offer excellent benefits. Consider these options based on your specific needs and preferences.
How does UnitedHealthcare rank against other healthcare companies?
UnitedHealth Group has been ranked as the top company in the health care insurance and managed care sector on Fortune’s “World’s Most Admired Companies” list for the 13th consecutive year, showing strong performance compared to its competitors. Based on customer ratings, it ranks 2nd in product quality, just below Humana and above Anthem, Inc.
Do both United Healthcare and Blue Cross Blue Shield provide Medicare supplement plans?
Yes, both United Healthcare and Blue Cross Blue Shield provide Medicare supplement plans.
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Russell Noga is the CEO and Medicare editor of Medisupps.com. His 15 years of experience in the Medicare insurance market includes being a licensed Medicare insurance broker in all 50 states. He is frequently featured as a featured as a keynote Medicare event speaker, has authored hundreds of Medicare content pages, and hosts the very popular Medisupps.com Medicare Youtube channel. His expertise includes Medicare, Medigap insurance, Medicare Advantage plans, and Medicare Part D.