Changed my Medigap carrier from MoO to Allstate

[REWahoo]

DW (75) and I (77) have had Medigap plan N policies with Mutual of Omaha since mid 2018. MoO "closed the book" on our pool of insureds about a year after we started with them and I have been closely monitoring their annual rate increase each June, expecting the worst. They haven't been too outrageous, but in 2021 and again in 2023 they hit all the plan N folks in our pool with 13.5%. I have been closely watching their plan N rate increases in other states over the past few months and many are in the 20% range, which doesn't bode well for what we will see come June.

I took the initiative today to try to make the switch to another insurer. I've seen a positive review or two on Allstate, which is relatively new to the Medigap world, so I contacted them for a plan N quote. I was pleased to find out I could save $35/mo ($104 vs $139) if I could get through underwriting, which I had no trouble in doing. Unfortunately DW developed some health issues a couple of years ago and is likely stuck with MoO. It's a bit ironic that me leaving DW's pool is likely to add upward pressure to future increases for her. Did I just shoot myself in the foot?

Of course Allstate could turn out to be no better than MoO when it comes to future increases, but at least I will have re-set the start point at a slightly lower level.

 

[grasshopper]

Ms G and I get 5% off BCBS for us both being on a Medigap plan with them. Every little bit helps.

 

[harllee]

Wahoo, I did the same and jumped out of Mutual of Omaha when they closed the book and started large premium increases. I went with AARP/UHC and have been pleased with them. DH is like your wife, has a preexisting condition and is stuck with Mutual of Omaha. I worry about what we will do about his supplement when Mutual of Omaha gets to $500 per month or more. He may have to go with an Advantage plan at that point.

 

[REWahoo]

harlee, don't forget we all have one "get out of jail free" card: Medigap underwriting loophole

MBSC summarized the strategy nicely in that thread:

Yes, this is used to escape from high premium Medigap plans that have closed. It only works if the person never had an Advantage plan and doesn't have ESRD. Switch to MA for one month during open enrollment and then switch back to original Medicare. Under the MA "trial right", the person is suppose to get their old Medigap plan back but can't because it's closed. This grants the person a Guaranteed Issue right to the Preferred Rate of certain Medigap plan letters. This method can only be used once.

I won't hesitate to go that route if her premiums get out of hand. They are only $120 now so I am hopeful they continue to be reasonable.

 

[harllee]

REWahoo, thanks for the escape route reminder. DH will probably have to try this as his Mutual of Omaha premium for Plan G is already $300 and he is only 72.

 

[MBSC]

Thanks for the update. Omaha Supplemental Insurance Company, one of several closed books in Texas, will have an 18% increase on Plans F/G/N at the next policy anniversary date after 4/1/24. HD-G, which didn't exist before 2020, will have no change as the enrollees are still young and healthy, and it's hard to accrue $2800 in Part A/B cost sharing.

Source: https://blogs.mutualofomaha.com/exp...odernized-In-Force-Rate-Adjustments_MS-TX.pdf

 

[REWahoo]

Omaha Supplemental Insurance Company, one of several closed books in Texas, will have an 18% increase on Plans F/G/N at the next policy anniversary date after 4/1/24.

Thanks for confirming what I expect to happen with my rates this year.

When you add their annual 3.5% to 5.5% age increase to the 18% bump in base rates, policy holders in this pool will see a premium increase of more than 20%. Yikes.

 

[harllee]

Thanks for confirming what I expect to happen with my rates this year.

When you add their annual 3.5% to 5.5% "attained age" increase to the 18% bump in base rates, policy holders in this pool will see a premium increase of more than 20%. Yikes.

That is what has happened to DH here in NC, annual Mutual Of Omaha increases around 20% since they closed the book

 

[mf15]

Hope they get out of the business. That way you can switch companies, guaranteed issue, but if I remember you have to keep same plan.