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WHY IS YOUR MEDICARE SUPPLEMENT PREMIUM INCREASING? WHAT CAN YOU DO ABOUT IT?


Medicare Supplement (Medigap) plans are created to help with healthcare expenses that Original Medicare (Part A and Part B) doesn't pay for, like copayments, coinsurance, and deductibles. Nevertheless, the premiums for these plans may rise over time due to different factors. Let's delve into the reasons behind these increases:


Factors Influencing Medicare Supplement Increases


1. **Age**

- **Attained-age-rated**: Premiums are based on your current age and can increase as you get older.

- **Issue-age-rated**: Premiums are based on your age when you first buy the policy and do not increase as you age.

- **Community-rated**: Premiums are the same for everyone regardless of age.


2. **Healthcare Inflation**

- General increases in healthcare costs can lead to higher premiums as insurance companies adjust rates to keep up with rising medical expenses.


3. **Plan Type**

- Different Medigap plans (e.g., Plan F, Plan G) offer varying levels of coverage and may have different premium structures. Changes in the popularity or risk associated with specific plans can influence premiums.


4. **Geographic Location*

* - Costs can vary by state or even by county due to differences in local healthcare costs, competition among insurance providers, and state regulations.


5. **Insurance Company Policies**

- Each insurance company sets its own premium rates and adjustments, which can be influenced by their overall claims experience, administrative costs, and profit margins.


6. **Regulatory Changes**

- Federal and state regulatory changes can impact premiums. For example, changes in benefits covered by Medigap plans or adjustments in Medicare itself can lead to premium adjustments.


**How to Manage Medicare Supplement Rate Increases**


1. **Shop Around**

- Compare premiums from different insurance companies. Even for the same coverage, prices can vary significantly.


2. **Consider Switching Plans**

You might be able to switch to a different company but keep the same type of Medigap plan, or switch to a plan with a higher deductible. Be aware of the underwriting process and any pre-existing condition limitations.


3. **Review Discounts**

- Some insurers offer discounts for various reasons, such as paying annually, electronic funds transfer, or living with another Medicare policyholder.


4. **Evaluate Plan Benefits**

- Make sure the benefits provided by the plan still meet your needs. Sometimes a higher premium might be worth it for better coverage, but in other cases, a lower-cost plan might be sufficient.


Conclusion


Various factors such as age, healthcare inflation, plan type, location, insurance company policies, and regulatory changes impact the increase in Medicare Supplement premiums. Being informed and proactive can assist in effectively managing these costs. You have the flexibility to switch your Medicare Supplement plan at any point during the year, without the need to wait for an "Open Enrollment" period. However, you may be required to undergo health underwriting to be eligible for new coverage.


If your premiums are getting too high, we have several companies and plans to choose from. Give us a call and we will show you what your options are! Let's save you some money!

Be blessed,

Dana Artzer

602-376-7260.

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