Your Medicare Supplement Premium Will Increase! (This is why)

Unlocking the Mystery of Rising Medigap Premiums: A Comprehensive Guide

00:00 - 01:03 - Introduction
01:04 - 02:09 - What are Medicare Supplements?
02:10 - 05:22 - How do Medigap premiums work?
05:23 - 08:23 - Understanding Medigap Loss Ratios
08:24 - 14:30 - Issue Age vs. Community Rated vs. Attained Age Rated
14:31 - 21:50 - Open vs. Closed Blocks of Business
21:51 - 23:23 - Conclusion

Welcome to our deep dive into the world of Medigap premiums! If you're transitioning to Medicare or already navigating its waters, you've likely encountered the complex landscape of Medigap, or Medicare Supplement Insurance plans. These plans are crucial for covering the costs that Original Medicare doesn't, but there's a catch – the premiums can and do increase over time. But why? And more importantly, how can you make an informed decision that protects you against unforeseen hikes?

In this video, we unpack everything you need to know about Medigap premiums – from the basics of what Medigap plans cover to the intricacies of how premiums are determined and why they rise. We'll explore the three different pricing models: Attained-Age-Rated, Community-Rated, and Issue-Age-Rated, providing real-world examples to illustrate how these models impact your wallet as you age.

We don't stop there. We delve into the factors driving premium increases, including age, inflation, and the overall claims within your plan's pool of enrollees. Ever heard of "loss ratios"? We'll explain what they are, why they matter, and how they influence the cost of your Medigap plan.

But it's not all about understanding the problem. This video arms you with practical strategies and tips for choosing a Medigap plan that offers stability and affordability in the long term. Whether you're pondering the differences between plan letters or considering the pros and cons of established carriers versus new entrants, we've got you covered.

Don't let the fear of rising premiums deter you from securing the coverage you need. Join us as we guide you through making an empowered Medigap decision that you can feel confident about for years to come. Whether you're a Medicare newbie or looking to reassess your current Medigap plan, this video is your go-to resource for navigating the ever-changing landscape of Medigap premiums.

🔗Useful links for sources from this video:

[Mary-tdvh]

Excellent video. I’m learning so much from your company! Thank you

[abe]

This is an excellent video. Choosing between N & G is almost a coin toss in terms of 1st year cost. It's what happens to those premiums in the future that's so important.

[JillBrady-tv]

My husband has plan N. Our agent said basically the same thing as u did. I will more than likley choose N in 3 years when I turn 65

[mountain]

Great video! Lots of information and data! Do you offer the service of helping people pick the medigap provider?

[adlerpaul]

Very good YouTube on the subject of "closed block" of business. Thanks for all the reference information.

Is there any protection from the state insurance commission from preventing a insurance company closing then opening a medigap plan with the same name? Or do they change the name of the plan?

Is there a list of insurance companies (per state) that have never done a close block of medigap plans (like State farm, USAA etc)?

[bethevans]

Thanks for the pricing information. Will be calling your office next week to set up time with an agent.

[aliveandwell]

Am amazed at the lower prices for plan G than our area. Did change Insurance co as price went up quite a bit but now the "new" co. is raising rates in May by ~$17/mth. Recall agent had said the some of Ins.Co looked at the rate would be for whole year. Is there a cap on rate increases for supp. or drug plan insurance? The part D drug plan went up more than 3x's amount (4.60 > 18.60). I didnt change it ontime. Even SF is lower for G then our area. Am curious about the high deduct plans as thought it also applied to part B of Medicare but someone said it applies to A (hospitol), so seems a good deal I past on .

[bigunbox]

Thanks for the info. How often can carriers raise their rates during the year?

[KatieLibby]

HDG if you are healthy. Max out of pocket is around $2, 800. You can bank the differnce. Rate increases are small, mine went down $9 a month for 2025.

[rxcatsone]

I still have over a year before I'm eligible for Medicare (turning 64 this year). I'd still like to get an idea of what a Medi-Gap policy will cost. I live in 94109 (San Francisco). I currently have insurance through my past employer (retired from UCSF). They will also pay part of my part B premium once I'm on Medicare. They also offer partial coverage for a few Medicare Advantage plans, but for various reasons, I prefer to go the Medi-Gap route.

[rcunningham-tp]

I am turning 65 this summer and researching Medigap Plans. I'd like to get an idea of what a Medigap policy will cost. I live in 75036 (North Texas) Thanks!! Great vids!!

[lengooi]

I understand that the premium increases for Plan G high deductible is based on CPI-U and hence more predictable versus open and close blocks. Is this correct?

[nikigeorgatos]

Will my medigap insurance premium payment change if I move to a different state after I enroll in Florida and move to Illinois? If the rate is lower in Illinois would my premium payment eventually lower.

[faugfam]

What are your thoughts on Ace Property and Casualty medigap plans? I know they are relatively new and they are inexpensive so I’m worried about them closing the block soon.

[johnmcdonald]

I understand the insurance companies need to make a profit just as my company does. You said the increases are because of claims which is the same as car insurance since they have to make money. I know there are actuaries who study and look at statistical data for the risk assessment and cost ratio but in health care do they also factor in genetics of the family life span. I always thought that I would love to sell insurance that is not a actual product that I don't have to produce and meet deadlines and specifications.
But in reality it is simply a business to make a profit and with cancer, heart attacks, diabetes, strokes and all the deadly viruses like corvid and rising medical cost I am sure its not easy.
But I also wondered how insurance companies selling home and property insurance companies deal with and make a profit when so many natural disasters occur. I was paying way to much a month and never made a claim so I raised my deductible because I looked at the risk assessment. I'm going to be 65 in August so I have to sign up for this so I appreciate the information and explanation as I have two older brothers who tried to tell me which plan to chose which I don't think they fully understand all the facts. ..

[bethevans]

I’m turning 65 in October and researching medigap plans. Would like info for premium pricing for my area in 48167. Thank you!

[nearmspmn]

For those who work beyond age 65 and use special enrollment to add Medigap plan at 68 or later, using Issue Age, does this create a penalty/higher premium for life?

[melindahopping]

How much would a Medigap plan be for a 66 yr old non-smoking man in 47001, who just had Medicare A & B in 2023? Thank you:)

[jctrame]

I have a Plan G which has edged up of course over the run. The biggest unknown is Part D: it went from 25 dollars in 2022 to $40 in 2023 and now $75 in 2924. That’s 150% in 2 years. I hate to be skeptical but I think they’re forcing us into Advantage.

[rhulamitcheltree]

What would my Medigap rate be for a 64 year old woman non smoking in 49253 zip code? So glad I found you!