Plan G Annual Increases?

[MBSC]

The AARP UHC Medigap supplement is "Community Rated". Beside the state you are in, what are the further divisions that determine your "Community"? Just by county, zip code, ?

1) It is truly community-rated in states like NY and WA that require all Medigap plans to be community-rated. 65 Female pays the same rate as 93 Male.

2) In states that prohibit attained-age plans (AZ, FL, GA, etc), it's an issue-age plan with no age discounts.

3) In states like Ohio that allow attained-age plans, you have to get beyond the "decreasing discount" (age increase) phase to get the community rate and that rate is different for men vs women. Some people refer to it as an attained-age plan with a cap on the age increases.

Some states have two versions. One with "extras" like gym membership and a basic version without extras. In Ohio, the extra plans have one state-wide pricing schedule, but the basic plans have 3 pricing regions.

 

[Calico]

Isn't this always the case with all Medigap plans?

You are correct; if my provider accepts Medicare then they accept my supplement. I removed that statement from my original post because I misspoke.

 

[zaqxsw]

In Ohio, the extra plans have one state-wide pricing schedule, but the basic plans have 3 pricing regions.

Thanks! That answers my question as I have an "extra" plan. There were no "basic" option plans when I signed up. I understand the "decreasing discount" (age increase) phase to get the community rate. Just another way to have them be "attained-age plans" in reality until you hit age 77 or 81 depending on when you joined.

Boy, these plans sure are state/area specific as far as the details go. I never knew there was such a difference. Luckily the coverage for the Medigap "letter" plans is all the same!

 

[Pluperfect]

When transitioning to Medicare I never even considered Medicare Advantage, because I wanted to replicate as closely as possible the health insurance I had during 35 years of employment.

When people are promoting Advantage plans, whether to individuals or as the only Medicare option in the future, they often point out that people are already used to the Advantage model because that's what they had as insurance from their employer. They've already been dealing with networks and prior authorization requirements, so an Advantage plan is just more of the same.

 

[FIREchief]

Hey I already BTD on travel and other things.

BTD?

 

[teej1985]

BTD?

blow that dough

 

[FIREchief]

blow that dough

Sometimes I find it reassuring that I don't know these things.

 

[Koolau]

Sometimes I find it reassuring that I don't know these things.

We'll corrupt you all too soon!

 

[MBSC]

Probably not, but I wonder if you have to pass underwriting if you're one of the clients now with Mutual of Omaha or one of the others who open/close books of business every few years to confine higher cost clients in sick duck pools? If I switch, I would like to get it right this time and go with BCBS-NC or another with broader pools.

I assume underwriting is the same barrier for BCBS-NC or the like, otherwise everyone would start with MoO and then switch to a provider who doesn't close the books so often if ever.

North Carolina doesn't have any special rules for changing plans without underwriting (Birthday Rule), so you have to pass underwriting outside the one-time Medigap open enrollment period. As Boomer Benefits said, the look-back period varies by company.

BCBS-NC has an internal policy of letting members who already have a BCBS-NC Medigap change plan letters at designated times each year without underwriting (including upgrades). This feature could be rescinded in the future.

Blue to Blue | Blue Cross NC

www.bluecrossnc.com

Here are the current BCBS-NC premiums before any discounts are applied. Notice there are no age increases after age 80.

https://www.bcbsnc.com/assets/common/pdfs/outline_of_coverage.pdf

 

[Texas Proud]

Multiple people have commented in this thread that Mutual of Omaha is the worst, but they must have great marketing as many seem to not let it stop them from joining.

And the brokers out there are making recommendations to buy them as they are the cheapest... with the 'lie' that all plans have to pay the same benefit... it is a lie as they do not tell you your premiums will go up faster..

 

[Midpack]

And the brokers out there are making recommendations to buy them as they are the cheapest... with the 'lie' that all plans have to pay the same benefit... it is a lie as they do not tell you your premiums will go up faster..

Yep has to be someone else's fault. As if buyers aren't looking for the lowest rates. And it's not necessarily a lie - if you are healthy with low medical expenses your rates won't go up nearly as fast and/or you can pass underwriting and change plans to a younger pool with relatively low rates. The broker has no way of knowing how healthy the buyer is...

 

[FIREchief]

And it's not necessarily a lie - if you are healthy with low medical expenses your rates won't go up nearly as fast

Plan G rates won't increase as fast if I'm healthy? Really?

 

[audreyh1]

Plan G rates won't increase as fast if I'm healthy? Really?

If you are healthy you have a good chance to pass underwriting and be able to switch to a different Medigap plan, which is what people try to do when their rates start to jump up.

 

[FIREchief]

If you are healthy you have a good chance to pass underwriting and be able to switch to a different Medigap plan, which is what people try to do when their rates start to jump up.

That wasn't the question.

 

[zaqxsw]

I'm 70. I've been with AARP/UHC Plan G since Nov. 2019. I just got a glimpse of my new Ohio, June general premium increase by using the SERFF website for Ohio. It's 13.9%. My reducing discounts due to age aren't figured into this (add another 3% for 2025). I have the extra gym membership in my policy by default when I enrolled. The "Basic" AARP/UHC Plan G shows a 19.9% increase for 2025... on the SERFF Ohio website.

The Ohio AARP/UHC Plan N general increase for the same period will be 10.9% for my "Extra" Plan.

So, I called UHC and asked if I can change from Plan G to Plan N without underwriting. I had previously confirmed I can do this a few years ago. They again said I could.

However, they informed me my current Medigap monthly premium would only decrease $1/mo.

Really confusing because my Standard Age 77 Base Rate is $32/mo. less with Plan N vs Plan G. While I'm allowed to switch, something happens in the rate structure that is a mystery. One of many with Medigap across states, areas, and companies.

 

[Dtail]

In 2018, at age 62, I was diagnosed with breast cancer, and my "cadillac" employer health insurance enabled me to get care at a world-class cancer center, which is 20 minutes from my home. I have been cancer-free since treatment in 2018, but who knows what the future holds?

I turned 65 and retired in December of 2020.

For several years before turning 65 I read every Medicare-related thread on this forum. The threads were very helpful; this is where I learned about "closing the books" and about peoples' personal experiences with traditional Medicare and supplements vs. Medicare Advantage plans. I attended educational meetings at the public library and the local hospital that were put on by SHIP. I watched every Boomer Benefits video on the subject of Medicare. I talked to older friends and relatives who were happy (or unhappy) with their Medicare decisions.

When transitioning to Medicare I never even considered Medicare Advantage, because I wanted to replicate as closely as possible the health insurance I had during 35 years of employment. I knew if I ever wanted to switch from Advantage to traditional Medicare I would never pass underwriting.

I wanted my health insurance to be simple, straightforward, and predictable. Finding the lowest cost plan wasn't even one of my top five priorities. When I'm 95 and losing my marbles, my health insurance will (knock wood) still be simple and straightforward for someone else to manage.

I chose the AARP UHC Medicare supplement. This provides me with peace of mind. Medicare pays their part and the supplement pays their part, and I get to spend my time thinking about anything except health insurance. Do I pay more than some people on other plans or on Advantage? I'm absolutely sure I do. Do I care even a little bit? Nope.

My premium costs so far are shown below. I think they are very reasonable.

This choice works for me. It's not for everyone, and some folks find a thrill in searching out the lowest premium, etc. It brings them the same pleasure that peace of mind and predictability bring me. Good for them!

View attachment 54600

You are doing great on [premium cost. Already at 220 monthly for AARP UHC Part G at age 65.

 

[Midpack]

And it's not necessarily a lie - if you are healthy with low medical expenses your rates won't go up nearly as fast

Plan G rates won't increase as fast if I'm healthy? Really?

Really? You’re going quote me and omit part of it to create a nit to pick? Second time you’ve done that I’ve seen. But I know you missed the hundreds of times we’ve been over this feature of Medicare supplement premiums…

Look at post #1 and note the difference in premium trends as well.

And it's not necessarily a lie - if you are healthy with low medical expenses your rates won't go up nearly as fast and/or you can pass underwriting and change plans to a younger pool with relatively low rates.

 

[Calico]

You are doing great on [premium cost. Already at 220 monthly for AARP UHC Part G at age 65.

I feel quite fortunate with my premiums so far, especially when I read what others are paying. $220 is a lot, especially to start with!

 

[Pluperfect]

I feel quite fortunate with my premiums so far, especially when I read what others are paying. $220 is a lot, especially to start with!

Something I noticed is that the profile of the person with a $220 premium at age 65 says the location is Tampa. All Medigap plans in Florida are issue-age priced, and I wonder if that contributes to the premium for a 65-year-old being higher than for 65-year-olds in states where supplements have age-attained pricing, and the premium will go up every year just because they get older. Like the premium in issue-age states is front-loaded because it won't go up every year based on age. (It will go up based on claims and inflation, but they all do that.)

 

[audreyh1]

Yeah, since Florida does not allow Medigap price increases for age that definitely explains the difference.

 

[Pluperfect]

You’re going quote me and omit part of it to create a nit to pick?

That's not what happened. You had two alternatives connected with "and/or" and the first one was what was quoted: "if you are healthy with low medical expenses your rates won't go up nearly as fast."

That was followed by "and/or you can pass underwriting and change plans to a younger pool with relatively low rates."

The part after the "and/or" is true, but the part before the "and/or" is not.

 

[Texas Proud]

If you are healthy you have a good chance to pass underwriting and be able to switch to a different Medigap plan, which is what people try to do when their rates start to jump up.

Agree... not the question.... and that makes an assumption that should be irrelevant.... they should not put you in a plan with a company that has a history of closing the book IF you are healthy... because next year you might get cancer and NOT be healthy and now you are stuck...

 

[Midpack]

Agree... not the question.... and that makes an assumption that should be irrelevant.... they should not put you in a plan with a company that has a history of closing the book IF you are healthy... because next year you might get cancer and NOT be healthy and now you are stuck...

The problem with that is the plans that don’t close the books have substantially higher premiums at age 65. I agree it would be nice if brokers shared the closing books/sick duck pool practice and said you can go with:

‘Plan M’ that costs $100/mo but premiums will go up much faster than average after a few years and if you’ve had major health events you won’t be able to pass underwriting and switch to a new book of business with lower premiums.
OR
‘Plan B’ that costs $180/mo with premiums that don’t increase much faster than general healthcare costs and won’t close the books and premiums will remain more reasonable in the long run.

I’m not sure it’s reasonable to expect brokers to share because most people by far would probably assume ‘I’ll be healthy, so I’ll go for the lower rates now.’

 

[audreyh1]

A lot of of this is simply community rated versus attained-age plan pricing. In our state, as in many, all offered plans are attained age plans with the exception of UHC/AARP which is community rated with an initial discount based on your enrollment age and after a few years a fixed annual % increase which stops at some later age. They spell this schedule out before you sign up. And folks looking at plan choices need to understand these models.

Another consideration is the size of the pool you are joining. For insurance we wanted a large pool and to avoid plans that closed the books so that the pool would remain open. You also must take into account how difficult it might be to change plans in your state. In most states after the initial Medicare enrollment it’s not possible to change plans without passing underwriting. A few states have some options but they can be limited.

 

[anethum]

The problem with that is the plans that don’t close the books have substantially higher premiums at age 65. I agree it would be nice if brokers shared the closing books/sick duck pool practice and said you can go with:

‘Plan M’ that costs $100/mo but premiums will go up much faster than average after a few years and if you’ve had major health events you won’t be able to pass underwriting and switch to a new book of business with lower premiums.
OR
‘Plan B’ that costs $180/mo with premiums that don’t increase much faster than general healthcare costs and won’t close the books and premiums will remain more reasonable in the long run.

I’m not sure it’s reasonable to expect brokers to share because most people by far would probably assume ‘I’ll be healthy, so I’ll go for the lower rates now.’

<emphasis mine>

It was not true in my state that all plans that don't close the books have substantially higher premiums at age 65. UHC & MoO were virtually the same rate in my state at 65 when I was signing up at 65. In fact, I recall that UHC was about $1 less than MoO. UHC doesn't close the book. MoO does. I am using the actual rate that people would pay UHC after factoring in their age-related discount.

Were you factoring in the age-discount calculation that UHC uses in most states?