Medigap, also known as Medicare Supplement Insurance, provides valuable coverage for out-of-pocket costs that Original Medicare doesn’t cover, such as deductibles, copayments, and coinsurance. While Medigap plans offer peace of mind and predictable coverage, it’s essential to be aware that you may see a Medigap premium increase over time.
Why Did My Medigap Premium Increase?
There are several factors that contribute to Medigap premium increases:
- Age: Many Medigap plans use an attained-age rating system, where premiums increase as you get older. This is because older individuals typically require more healthcare services.
- Inflation and Rising Healthcare Costs: As the cost of healthcare rises, insurers need to adjust their premiums to cover these increased expenses.
- Changes in Medicare Costs: When Medicare adjusts its deductibles or other costs, Medigap insurers may also raise their premiums to reflect these changes.
- Rate Actions: Insurance companies can request permission from state regulators to increase premiums if they determine that current premiums are not sufficient to cover the claims being made.
- Market Competition: The competitive landscape of the insurance market can also influence premium increases.
What Can You Do When With A Medigap Premium Increase?
If you receive a notice of a premium increase, don’t panic. There are several steps you can take:
- Review Your Current Plan and Healthcare Needs: Take a close look at your current Medigap plan and assess whether it still meets your needs. Consider your recent healthcare utilization, any upcoming medical needs, and your budget.
- Shop Around and Compare Plans: Did you know that you can switch Medigap plans at any time? While you may have heard of the Annual Enrollment Period — or even used it for shopping Prescription Drug Coverage — you’re not bound by those dates to explore other Medigap options. However, unless you qualify for a guaranteed issue period, you may have to go through medical underwriting. A licensed insurance agent can assist you to see you’re a good candidate to change plans or if you qualify for a guaranteed issue period.
- Connect with United Medicare Advisors: Our licensed insurance agents specialize in Medigap plans. We provide valuable guidance and help you navigate the complexities of Medicare Supplement Insurance. We inform you about any state-specific rules that may affect your ability to switch plans and can help you identify plans with potentially lower premium increases. And, if you need underwriting, we can assist you through that process so it doesn’t seem quite as daunting.
Key Points to Remember
- Medigap premiums are not based on your income or individual health status once you are enrolled in a plan.
- It’s essential to factor in potential premium increases when choosing a Medigap plan.
- Don’t hesitate to shop around and compare plans at any time, or see if you qualify for a guaranteed issue period.
- A licensed insurance agent who focuses on Medigap plans can be a valuable resource in finding the right plan for your needs and budget.
While a Medigap premium increase is a reality, you have the power to take control of your healthcare coverage. By staying informed, reviewing your options, and seeking expert guidance, you can ensure that you have the Medigap plan that best suits your needs and budget, even in the face of rising premiums.
