Massive Medicare Supplement cost increases in 2025 coming to a state near you

[omni550]

Christopher Westfall (SeniorSavingsNetwork.org) just posted a video on massive Medigap Rate increases coming in 2025...for example: MoO in Illinois is up 40%.

These increases are based on costly items like elective care that were often deferred during Covid (knee surgeries, etc.)

FYI: Anyone on a Medigap plan can shop/change plans any time during the year, assuming they can pass underwriting. (<---thanks for pointing that out, pb4uski)

omni

 

[pb4uski]

...FYI: Anyone on a Medigap plan can shop/change plans any time during the year...

That's if you can pass underwriting, right?

 

[aja8888]

Interesting video, we will see what happens. I'm on Plan G for many years now and have only seen reasonable rate increases each year. I'll call my Humana broker this week and see what he says about the potential premium increases.

Thanks for posting this.

 

[REWahoo]

Looking at MoO's recent internal announcement of May rate increases, I do see 40% increases for F, G, and N for both new and one existing book of business in IL:

I'd be interested in hearing what MBSC has to say about the increases.

 

[MichaelB]

I have UHC/AARP MediGap G in South Florida and will see an 11.1% increase in June.

Reminds me of the old pre-ACA days in a non-nostalgic way.

 

[AudiDudi]

I just got a letter from Pan American informing me my plan G premium will rise another 23% this year (effective May 1) after a 22% increase last year - so 50% in 2 years. I will be shopping. That's about $75/mo increase in 2 yrs.

 

[aja8888]

I just got a letter from Pan American informing me my plan G premium will rise another 23% this year (effective May 1) after a 22% increase last year - so 50% in 2 years. I will be shopping. That's about $75/mo increase in 2 yrs.

Good luck, it appears all Medigap insurance companies will follow the rate increases (profit increases!).

 

[HFWR]

Mine increased 4% last August. No notice yet of an increase. AARP/UHC

 

[aja8888]

Mine increased 4% last August. No notice yet of an increase. AARP/UHC

Sit tight, enjoy your low premiums...for now.

 

[HFWR]

Sit tight, enjoy your low premiums...for now.

That’s what I’m afraid of… It’s only money, right?

 

[Jerry1]

Mine will go down next year. I’m under 65 and on Medicare (disability) so the pricing reflects that (over $600/mo). When I turn 65 next year, my rate will fall because they have to then use the normal rate for pricing. My DW is already on Medicare and her gap plan is just over $200, which is still under the stipend we get from my employer. The pain starts when the coverage exceeds the stipend.

 

[HFWR]

Mine will go down next year. I’m under 65 and on Medicare (disability) so the pricing reflects that (over $600/mo). When I turn 65 next year, my rate will fall because they have to then use the normal rate for pricing. My DW is already on Medicare and her gap plan is just over $200, which is still under the stipend we get from my employer. The pain starts when the coverage exceeds the stipend.

Mine runs out in October now. Used to last all year.

 

[Midpack]

Already posted earlier but my MoO Plan G has gone up 18-20% each of the past 3 years. I may not be able to pass underwriting for 5 years, if then. At some point I’ll pull ‘switch to Advantage, and back to a Medicare supplement’ (once per customer as I understand it) from a provider who doesn’t have a history of one sick duck pool after another like many. DW hasn’t seen large increases yet but she’s 2 years younger than me. Fun and games that brokers rarely if ever warn about?

 

[HFWR]

Already posted earlier but my MoO Plan G has gone up 18-20% each of the past 3 years. I may not be able to pass underwriting for 5 years, if then. At some point I’ll pull switch to Advantage, and back to a Medicare supplement from a provider who doesn’t have a history of one sick duck pool after another like many. DW hasn’t seen large increases yet but she’s 2 years younger than me. Fun and games that brokers rarely if ever warn about?

The fact that one would face underwriting was why I went with traditional Medicare. That and a lot of horror stories concerning Advantage.

 

[pb4uski]

Good luck, it appears all Medigap insurance companies will follow the rate increases (profit increases!).

You are misinformed if you think that rate increases are automatically profit increases. It doesn't work that way. To begin with, profits are limited by law. Second, the premium increases are more a function of higher medical claim costs being passed on to policyholders than anything else. In short, their inflation becomes your inflation.

 

[MichaelB]

You are misinformed if you think that rate increases are automatically profit increases. It doesn't work that way. To begin with, profits are limited by law. Second, the premium increases are more a function of higher medical claim costs being passed on to policyholders than anything else. In short, their inflation becomes your inflation.

Right. I would add, in each case, the preimum increases have also been reviewed and approved by the state insurance regulators.

 

[AudiDudi]

<snip>Second, the premium increases are more a function of higher medical claim costs being passed on to policyholders than anything else. In short, their inflation becomes your inflation.

Ahhh - kind of like a tariff the doctors charge and the insurance co's. pass it along to their customers I get it.

 

[HFWR]

…approved by the state insurance regulators.

I feel so much better now.

If we want Medicare to survive, rates will increase…

 

[Dtail]

I have UHC/AARP MediGap G in South Florida and will see an 11.1% increase in June.

Reminds me of the old pre-ACA days in a non-nostalgic way.

Exact same % increase for me in Tampa for the same plan.
This is my first year on Medicare and I thought the higher rates in Florida were due to the "issue age" concept vs the attained age concept. Thus I would have expected a higher rate at issuance and lower increases going forward.

 

[harllee]

Already posted earlier but my MoO Plan G has gone up 18-20% each of the past 3 years. I may not be able to pass underwriting for 5 years, if then. At some point I’ll pull ‘switch to Advantage, and back to a Medicare supplement’ (once per customer as I understand it) from a provider who doesn’t have a history of one sick duck pool after another like many. DW hasn’t seen large increases yet but she’s 2 years younger than me. Fun and games that brokers rarely if ever warn about?

Midpack, if you figure out the switch to Advantage and back to traditional medicare loophole let me know, DH needs to do that. We have tried to find an insurance agent to help him do that and no one seems to know about this. Boomer Benefits were no help.

 

[Dtail]

Midpack, if you figure out the switch to Advantage and back to traditional medicare loophole let me know, DH needs to do that. We have tried to find an insurance agent to help him do that and no one seems to know about this. Boomer Benefits were no help.

When I brought up this concept to Boomer Benefits just to see if they were up on this nuance, they were aware of it. Of course it could have been just this one agent.

 

[audreyh1]

Exact same % increase for me in Tampa for the same plan.
This is my first year on Medicare and I thought the higher rates in Florida were due to the "issue age" concept vs the attained age concept. Thus I would have expected a higher rate at issuance and lower increases going forward.

Probably true.

 

[anethum]

Christopher Westfall (SeniorSavingsNetwork.org) just posted a video on massive Medigap Rate increases coming in 2025...for example: MoO in Illinois is up 40%.

These increases are based on costly items like elective care that were often deferred during Covid (knee surgeries, etc.)

FYI: Anyone on a Medigap plan can shop/change plans any time during the year, assuming they can pass underwriting. (<---thanks for pointing that out, pb4uski)

omni

Lots of hyperbole and misleading information, yet again, from this guy. I believe his main intent is to get customers to switch to Plan N so he gets new commissions. Once again, he rants about Guarantee Issue without giving any reason why people who qualify for it should be more expensive to insure. They don't qualify for Guarantee Issue because they're sicker than other folks on Medigap plans. Typically they qualify because they're going off an employer-sponsored plan, or their current insurer is ending their plan. Neither of these means that the folks in these circumstances are likely to be any sicker than folks of the same age already on a Medigap plan. He also implies without specifically saying, that sick people on Advantage plans are moving to Medigap plans. Not true. In birthday rule states that I'm aware of, you can only switch to a plan having equal or lesser coverage. That doesn't allow you to move from an Advantage plan to a Medigap plan.

As for me, my UHC Plan G is increasing 11% this year. I started at 65 with a MoO Medigap plan and switched after I turned 66 because MoO had a big increase. (I allowed myself to sign up for MoO when I was turning 65 by a hard sell by a Boomer Benefits agent, so I don't have lots of love for them, either. MoO & UHC had virtually identical rates in my state when I was 65.) I was able to escape MoO because I passed underwriting. A year or two later, MoO closed the book on the group I had been in, so I have no idea how outrageously high my rate would be now.

Now, my state has a true birthday rule and I plan on switching to either Bankers Fidelity Assurance Company or Erie Family Life Insurance Co. If anyone has had Medigap experience with either of these companies, I'd be interested in hearing about it. But since all Medigap insurers by law have identical coverage for Plan G, I'm not too concerned. I know that Bankers Fidelity closes the book like MoO, but the birthday rule in my state means that I can switch Medigap insurers each year.

 

[pb4uski]

We have had Plan G since we were 65 and last year switched from.Aetna/Continental Life to Bankers Fidelity as part of our move from Florida to Texas. No complaints so far but at the same time, not much to go on since we've only been with them for six months.

 

[William38]

Christopher Westfall (SeniorSavingsNetwork.org) just posted a video on massive Medigap Rate increases coming in 2025...for example: MoO in Illinois is up 40%.

These increases are based on costly items like elective care that were often deferred during Covid (knee surgeries, etc.)

FYI: Anyone on a Medigap plan can shop/change plans any time during the year, assuming they can pass underwriting. (<---thanks for pointing that out, pb4uski)

omni

That’s a huge increase—thanks for the heads-up. It’s a good reminder to review your Medigap plan annually, especially if you’re still in good health and could pass underwriting for a switch. A 40% jump could wipe out any savings you thought you had. Always worth comparing rates and benefits before the increases hit.