Medicare Supplement Premium Increased: What to Do If your Medigap Premium Increase
If you’ve been happily retired for a while now, enjoying the peace of mind and financial stability that comes with a fixed income, then one day you may wake up to find that your Medicare Supplement insurance monthly premium has increased.
Not only do older adults need to be concerned with their Medigap plan increasing they also face rising Medicare Part B premiums and Part B deductible increases.
For retirees who rely on Original Medicare with a Medigap plan to help cover the high cost of health care, this can be cause for alarm – but it doesn’t mean you have to panic.
Here are a few answers to this common scenario older adults face if their Medigap premium increases.
Table of Contents
Why Did My Medigap Premium Go Up?
If you have a Medigap policy, your premiums will go up each year as you become older.
Most Medicare Supplement plans are age-banded insurance policies which is a fancy term for based on your age.
Very few Medicare Supplemental insurance policies are attained-age policies as their monthly insurance premiums start out much higher and very few Medicare Beneficiaries want these types of health insurance policies.
At age 65 when you were in your open enrollment period, your Medigap Insurance Agent should not only consider today’s rates but also how the life of the policy will respond as you get older.
Integrity Now Insurance Brokers understands there is a bigger picture and not all states allow for older adults to change plans without medical underwriting. it is vital for your Medicare agent to review Medigap rate trends to contain your rate increase on your next Medigap policy anniversary.
What can I do if my Medicare Supplement Rates Increase?
Obtain New Medigap Insurance Quotes from a Medicare Insurance Broker who cares about pricing and coverage
There are many factors that determine your Medigap premiums and why they increase every year. Medigap carrier’s pricing methods are typically based on the age of each qualified Medicare Beneficiary enrolled on the plan.
If your Medigap premium increases, it’s possible to compare rates from different Medigap carriers and find a cheaper option that still meets your needs.
Because all Medigap plans are standardized the only difference between company a and company b is their policy premiums.
It is important to know that you will experience rate increases with all Medigap companies.
Additional factors that cause insurance premiums to increase over time are the following
- The rising cost of healthcare
- Rate increase due to plan-wide rate increase
- Inflation and other factors
Premiums vary by the insurance company which increases the importance of using an independent insurance agent who specializes in Medicare. They work with multiple top Medigap providers and monitor each rated plan and identify if and when they need to move their clients to a better deal.
We also consider things like the quality of an insurance company’s customer service and its rating system before offering its health policy to our clients.
Compare Medigap Insurance Companies by Rate
Switching to a different Medigap insurance company can save you money each month. It’s important to note that not all companies offer the same rates for the exact same coverage, so it’s important to compare quotes before making a decision.
If you are outside of your guaranteed issue rights, it is vital to make sure your state allows for a qualified change without medical underwriting. For instance, California has a birthday rule.
Before comparing a new Medicare insurance company, know your state rules.
Your Medicare insurance agent will help you enroll in a Medicare plan after first reviewing all Medicare options.
Switch from Medigap Plan F to Plan G
If your Medigap Plan F premium is continuing to jump, you may be able to switch to a different Medigap plan.
On January 1, 2020, Medicare Supplement Plan F is no longer available to Medicare beneficiaries who are new to Medicare. This means the once “most popular plan” is now a plan most older adults no longer want.
This is primarily due to larger than normal rate increases due to no fresh younger generations of people no longer being added to the plan to help spread the costs.
Those enrolled on Plan F are now quickly moving to Medicare Supplement plan G as a great alternative. The only difference between Plan F and Plan G related to coverage is that Plan G does not cover your Part B annual $233 deductible. However, the annual premium savings add up to nearly $1,000. Now that is an attention grabber!
Give us a Call and see how much we can save you with one of our rate quotes.
Switch From Medigap Plan G to Plan N
Medigap Plan G provides more benefits than Plan N, but it has a slightly higher premium. If your premium increases, you may want to consider switching to Medigap Plan N however, there are additional things to consider other than your monthly premium.
Medicare Plan N comes with more out-of-pocket costs that include:
- You’ll pay up to a $20 copayment for doctor visits
- $50 copayment for emergency room visits that don’t result in an inpatient admission.
- Excess charges for doctors who do not accept medicare assignments are not covered (equals a 15 percent up charge to your Medicare bill)
The monthly premium difference between Medicare Supplemental Plan G and Plan N is about $20 a month. To decide if the trade-off of slightly higher monthly premiums for a more comprehensive Medigap Plan G is worth it, you’ll need to take a close look at your health care needs and budget.
Please keep in mind that upgrading back to a Medigap Plan G may not be an option in the future based on your medical conditions. Most insurance companies will require you to pass medical underwriting when increasing health care benefits.
Explore Household Discounts to Reduce your Pricing Plan
If you and your spouse both have a Medicare Supplement plan but are not with the same insurance company, you could be missing out on a household discount.
Medicare insurance companies offering Medigap policies may offer a discount to spouses who enroll in the same plan with the same insurance company. Depending on the insurance provider this discount could be significant.
Some insurance companies may offer a discount if you pay your insurance premium in full versus monthly or quarterly.
Review Medicare Advantage Plans as an Alternative to Medigap Plans
If you can no longer afford your Medigap insurance premiums Medicare Advantage plans may be an option to consider. Medicare Advantage Plans are offered by private insurance companies and typically have lower premiums than Medigap plans.
Before making the switch, it’s important to understand that Medicare Advantage Plans generally have a more limited doctor and hospital networks than Medigap plans. They also often come with more out-of-pocket costs, such as deductibles, copayments, and coinsurance.
If you’re considering switching to a Medicare Advantage Plan, be sure to compare the costs and benefits of several plans before making a decision. You will also want to find a plan that covers all of your must-have doctors and hospitals. Remember, not all doctors who accept Original Medicare will accept your Medicare Advantage plan.
Because you only have one option for your Part D prescription drug coverage, you will need to check if all of your medications are included in the Medicare Advantage plan and how much they will cost.
We often find the costs of your drug price charged to Medicare Beneficiaries for their Part D benefits far exceed the savings to switch from a Medigap plan to a Medicare Advantage plan.
Medicare Advantage plans may also require step therapy to reduce their drug costs. Make sure you talk with a Medicare expert before switching Medicare plans based solely on the annual rate you are paying. They are in the business of keeping your health benefits intact.
Use an Independent Insurance Agent to get Medicare more Help
An independent insurance agent is a professional who helps people buy and/or maintain health insurance. They can help you compare rates, find the best plan for you, and handle all the paperwork needed to get coverage.
If your Medigap premium increases, it’s important to contact an independent insurance agent to help you understand your plan options. An independent agent can help you compare rates and find the best Medicare plan for your needs.
Integrity Now Insurance Brokers is an independent insurance agency that specializes in Medicare throughout the US. If your Medigap rate increases get out of hand let us shop all available insurance markets to find a more affordable Medicare Supplement plan.
How often can my Medicare Supplement Premium go up?
Your Medigap premium can go up periodically, depending on your health insurance plan. Some plans increase rates annually while others may increase rates bi-annually.
What Factors can Affect my Medicare Supplement Rate Increases?
The primary factor is your age and health conditions if enrolling outside of your guaranteed issue period.
However, another unknown or less common factor can include the department of insurance requiring a rate increase for a specific insurance company.
This happens when an insurance company’s financials may not be adequate to pay future claims due to a high loss ratio.
I'm on a Fixed Income: How can I afford these Medigap Rates Charged by the Insurance Carrier?
If you’re on a fixed income, an increase in your Medigap premium can be a real financial burden. If this is the case, you may want to consider switching to a Medigap Plan with a lower premium.
You may also want to consider switching to a Medicare Advantage Plan, which typically has lower premiums than Medigap plans.
Before making any decisions, be sure to compare the costs and benefits of several plans to find one that best meets your needs and budget.
Get Help From an Independent Medicare Advisor: The best way to Reduce Spending on your Premium Rate
If you’re having trouble understanding your Medigap options or finding a plan that meets your needs and budget, consider getting help from a Medicare advisor. Licensed Medicare counselors are trained professionals who can help you understand your options and make the best choices for your situation.
Is there a Limit to how much my Medigap Premium can go up?
There is no limit to how much your Medigap premium can go up. Your Medigap premium is a fee that you pay each month to have coverage under your Medicare Supplement plan to cover costs not included in Original Medicare.
Your premiums may increase from time to time, but there’s no limit on how much they can go up. Working with a trusted insurance advisor is critical to finding a reputable insurance company that is known for not passing on large annual premium increases.
What is Medigap Policy?
Medigap is a type of health insurance that is designed to supplement Original Medicare (Parts A and B).
Medigap plans are offered by private insurance companies, and they can help you pay for out-of-pocket costs such as deductibles, copayments, and coinsurance.
There are 10 different types of Medigap plans, each with a different set of benefits. You can choose the Medigap plan that best meets your needs and budget.
What are the Different Types of Medigap Plans?
There are 10 different types of Medigap plans, each with a different set of benefits. The plans are identified by letters A through N. Here is a brief overview of the benefits that each plan offers:
- Plan A: Basic benefits including Medicare Part A coinsurance and hospital costs, Medicare Part B coinsurance or copayments, first three pints of blood, and Part A hospice care coinsurance or copayments.
- Plan B: Basic benefits plus Medicare Part A deductible, skilled nursing facility care coinsurance, and foreign travel emergency coverage.
- Plan C: Basic benefits plus all of the benefits of Plan B, plus Medicare Part B deductible.
- Plan D: Basic benefits plus all of the benefits of Plan C, plus coinsurance for Part B excess charges.
- Plan F: Basic benefits plus all of the benefits of Plans B through D, plus Medicare Part B deductible and foreign travel emergency coverage.
- Plan G: Basic benefits plus all of the benefits of Plans B through F, minus Medicare Part B deductible.
- Plan K: Basic benefits including Medicare Part A coinsurance and hospital costs, Medicare Part B coinsurance or copayments, first three pints of blood, skilled nursing facility care coinsurance, hospice care coinsurance or copayments, and 50% coverage for Medicare Part A deductible.
- Plan L: Basic benefits including Medicare Part A coinsurance and hospital costs, Medicare Part B coinsurance or copayments, first three pints of blood, skilled nursing facility care coinsurance, hospice care coinsurance or copayments, and 75% coverage for Medicare Part A deductible.
- Plan M: Basic benefits including Medicare Part A coinsurance and hospital costs, Medicare Part B coinsurance or copayments, first three pints of blood, and foreign travel emergency coverage.
- Plan N: Basic benefits including Medicare Part A coinsurance and hospital costs, Medicare Part B coinsurance or copayments, first three pints of blood, skilled nursing facility care coinsurance, hospice care coinsurance or copayments, and foreign travel emergency coverage.
Integrity Now Insurance Brokers: Your Medicare Supplement Insurance Expert
Integrity Now Insurance Brokers helps you find the best Medicare supplement policy for your needs. They have years of experience helping people secure coverage for their medical expenses.
You can contact Integrity Now Insurance Brokers to get started on your coverage today at 562-735-3553.
