Join Early Retirement Today
Thread Tools Search this Thread Display Modes
How Often Can a Medigap Policy Raise Rates?
Old 12-04-2009, 04:42 PM   #1
Dryer sheet wannabe
Join Date: Dec 2008
Posts: 11
How Often Can a Medigap Policy Raise Rates?

I signed up for a Medigap "F" policy in January of this year to begin February 1 when I started on Medicare. In June I got a letter saying that my premium would go up, starting with the July payment of the August premium.

Now this seems odd because we cannot change plans until the open enrollment period at the end of the year. If they can raise rates anytime during the year how can we decide which plan to choose?

Is it normal - usual - common for a plan to raise its premiums during the year? This is Blue Shield of California -- what other plans do you know of that change rates during the calendar yer?

MayGray is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-05-2009, 11:34 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,664
Hey MayGray,

I found this. It appears that your state (CA) has unique regs that cover this. Interesting, since I have TricareforLife as my "medigap", I had never looked into it.

e]In most states, medigap policies can be priced in three ways:

With attained-age policies, premiums will increase as you get older -- typically ratcheting up every one, three or five years. (This is in addition to price increases linked to health-care inflation, a reality that affects all policies regardless of rate structure.) Attained-age policies generally start out less expensive than others, but premiums can rise much faster. For an idea of how fast, ask any insurer whose policy you are considering at age 65 how much it's charging 70-, 75- and 80-year-olds now.

Issue-age policies base your rate on your age at purchase. If you buy the policy at age 65, for example, it's less expensive than if you buy it at 75. But once you buy, the price won't increase just because you get older. (Premiums will rise with health-care inflation.)

"As a general rule, the attained-age policies start out looking inexpensive but end up costing a whole lot more than the issue-age policies," warns Diane Archer, founder of the Medicare Rights Center, which helps senior citizens with their health-care choices.

Community-rated policies are similar to issue-age versions, except that everyone in the same area pays the same price regardless of age (AARP, however, generally provides a discount -- up to 20% -- until about age 68). Once you buy, premiums will not rise simply because you get older.
How to win the medigap pricing game - MSN Money
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Raise! bright eyed Young Dreamers 14 04-21-2007 04:37 PM
Asking for raise maggieddd Young Dreamers 74 01-22-2007 08:52 PM
Medigap or Medicare Advantage Plan? modhatter Life after FIRE 1 04-30-2006 06:54 PM
Medicare+Medigap vs. Medicare Advantage haha FIRE and Money 2 02-01-2006 08:16 PM
Medicare/medigap cute fuzzy bunny FIRE and Money 15 07-14-2004 09:59 AM


All times are GMT -6. The time now is 04:24 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.