x
Medigap Insurance, just like any other insurance, has pesky rate increases that no one likes. Clients always ask us whether their Medigap rate will go up, and the answer truthfully is YES. Medigap premium increases will occur nearly every year.
Anyone who tells you otherwise is untrustworthy.
Most Medigap policies have a rate increase once a year, usually on your policy anniversary. Some carriers increase on your birthday month instead. Depending on your policy type, you may even experience a rate increase during your birthday month and anniversary month.
Over the last few years, though, we’ve seen occasions where a Medigap rate stayed level from one year to the next. We’ve even seen the rare rate decrease. Unfortunately, while those are wonderful when they happen, they are not the norm. Rates generally do go up over time, and that’s because of inflation and other factors.
Medicare supplement insurance policies like these are subject to inflation, just like everything else in America. The cost of healthcare is rising, so the insurance companies must adjust annually to reflect that. Medicare itself also usually increases the deductibles from year to year, and many Medigap plans cover those things. Your policy will be covering bigger deductibles when that happens, so it results in increases to your monthly premium.
So what can you do to keep those Medicare supplement rate increases in check over the years? I’ve got some tips to share with you here in this blog post so keep reading. You can also download our free report about why most people end up overpaying for their Medigap plans.
If you really like the benefits that your current policy provides, then the first thing to check is whether any other Medigap insurance carriers offer that same plan for less. Medigap plans are standardized by plan letter. So if you have a Plan F and switch to another carrier offering Plan F, you can feel 100% confident that your benefits will remain exactly the same.
Medigap plans also do not have networks, so changing your Medigap company does not affect your access to your doctors in any way. You will still be able to see any provider in the nation that participates in Medicare. The only difference is that after Medicare pays its primary share, it will send the remainder of that bill to a different Medigap insurance company to cover the rest of any benefits owed on your behalf.
Quoting software allows brokers like us to compare Medigap rates in your area easily.
This makes it so easy to shop Medigap rates. Here at Boomer Benefits, we have a quoting software that instantly compares all of the Medigap carriers in any zip code, and lets us see at a glance whether any other company has lower rates in your area. I’ve found it to be extremely helpful in not only finding the lowest rates but also allowing my staff to search for Medigap rate trends among the carriers.
Suppose we see a very competitive rate, but the Medicare supplement rate increase history feature of our software tells us that this carrier has had double-digit rate increases of 10% or more every year. In that case, we look for a carrier with a similarly competitive rate but lower increase history.
There’s no crystal ball here – we can never be 100% certain of what any carrier’s rates will change to the next year. However, we can do our best to make some educated guesses based on history, and that’s helpful
Look Into Health Sharing For Seniors like Impact Health Share
Impact for Seniors simplifies the healthcare experience.
Simply pay your Primary Responsibility Amount (PRA) of $1000 and Impact members will share the portion of your Eligible Medical Bills that Medicare allows but does not pay completely, like Co-pays, Deductibles, Hospitalization, Skilled Nursing Facility Care, and Out-of-country Urgent Care. With sharing secondary to Medicare, this program is an incredible options for seniors.
Household Discounts are a great way to lower your Medigap rate.
Medigap carriers compete for your business, and one of the most common ways is to offer a household discount. The discounts can range from around 5% up to 12% with certain carriers in certain states. In the past, these discounts have usually been for spouses who enroll in Medigap plans with the same carrier. When both spouses have their policy with the same company, they both get a discount.
In recent years, however, we’ve seen a few carriers make the qualifications a bit easier. For example, some will now offer a discount to anyone who lives with another adult person. That person does not have to be insured by the same insurance carrier. Not all carriers require that adult to be your spouse, either. A roommate or other adult relative will sometimes suffice.
If you live with or are married to another person, check with your agent to see if you are eligible for any discounts that would lower your Medigap rate. This can result in quite a bit of saving for you.
In the past, Medicare Advantage plans only had one health question that asks about End Stage Renal Failure (kidney disease). However, as of 2021, that health question has been removed. This means now all Medicare beneficiaries can qualify for a Medicare Advantage plan – even people with health conditions that prevent them from switching between Medigap plans. Anyone who has Medicare Parts A & B and lives in the plan’s service area can enroll in a Medicare Advantage plan during the fall Annual Election Period each year from Oct. 15 – Dec. 7.
Medicare Advantage plans rate everyone the same regardless of age.
This is not a decision to be made lightly. The coverage under Medicare Advantage is very different. Most of these plans have HMO or PPO networks of doctors. Some require you to see a primary care doctor for a referral before being allowed to see a specialist. You’ll want to make sure that any plan you consider is one that your important doctors are participating in. However, the trade-off for having a more restrictive doctor network is that many Advantage plans have lower premiums than Medigap plans. Many also include a built-in Part D drug plan.
