Why Are Medicare Supplement Premiums on the Rise?

Understanding Medicare Supplement Plans

Medicare Supplement plans, or Medigap, complement Original Medicare by covering gaps like copayments, coinsurance, and deductibles. Offered by private insurers, premiums vary based on plan type, location, and provider.

Factors Influencing Premium Increases

1. Increasing Healthcare Costs

Premiums rise due to escalating healthcare costs, driven by:

• Technological Advances: New medical technologies, such as MRI scans, have become more expensive.

• Rising Drug Prices: Prescription drug prices have surged, with some medications increasing over 200%.

As claims increase, insurance companies raise premiums to manage costs.

2. Aging Population

The growing number of seniors, expected to reach 95 million by 2060, increases healthcare demand and claims, leading to higher premiums.

Impact on Beneficiaries

Rising premiums strain beneficiaries' finances, particularly retirees. Many seniors, 80% of whom have chronic conditions, must reassess their options to maintain affordable coverage.

Staying Informed and Proactive

Understanding the reasons behind rising premiums is crucial. Staying informed and exploring options helps beneficiaries make informed decisions about their coverage.

What Can You Do?

Contact me at 602-376-7260 to explore current plans and find more affordable options. Be prepared for health questions during the process. Remember, you can switch Medicare Supplement plans anytime.