Help! My Medigap Rates Went Up

Like the price of eggs or haircuts, Medigap rates go up over time. Just five short years ago, Medigap rates were about 70-75% of what they are now. Where rates are $100/month now, they may have been $70-75/month just five years ago! That’s hard to believe but a sign of the times. Escalating Medigap rates are a classic example of people not realizing that they can do something about it, albeit small, and help themselves in the process.

Contrary to popular belief, you can change Medigap plans at any time (When Can You Change Medigap Plans?). So, we must start with the understanding of that premise. So many times, people get a rate increase notification, open it up, get frustrated but think there is nothing they can do about it until the “end-of-year enrollment period” (the mythological one, that doesn’t exist for Medigap plans). Then, by the end of the year, they have forgotten about the rate increase – they’ve been paying the higher rate for a few months and it has become the new “normal”. The same thing happens the next year!

Well, we are here to tell you that there’s a better way, and it’s really not that complicated. Whether it is us or someone else, there are many online resources that will give you comparative information/quotes for Medigap plans. When your rate goes up, you should always explore other options to see if there is one that would be more competitively priced for the same coverage. Coverage, as you probably know if you are already on Medicare, is Federally-standardized. Do you have a Plan F? It is the same coverage with a new company as it is with your current company. Same things with Plan G, N, etc. So, comparing “apples to apples” is very easy to do.

There can be as much as a $100/month variation in rates for the same Medigap coverage, within the same geographic area. Rates vary this much for many reasons, some of which are claims experiences, administrative costs, marketing costs, and also, some companies just target certain geographic areas, age, or plans more than others.

There is absolutely NO reason, especially if you are in relatively good health, to be paying more than the lowest possible rate for your Medigap plan.

The plans are standardized, can be used anywhere nationwide that takes Medicare, and pay claims through the same “crossover” system. So ultimately, the premium rate is the thing that matters and should be compared/considered.

To get more information on how to compare plans or to get a Medigap comparison by email, please click the previous link or call us at 877.506.3378.

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