Medigap Rate Increase: What to do

Discovering that your Medigap (Medicare Supplement) premium is increasing can be stressful, particularly if you're on a fixed income. However, there are several steps you can take to manage these changes without compromising the quality of your healthcare coverage. Here's a guide to help you navigate a Medigap rate increase.

Understand the Reason for the Increase

The first step is to understand why your Medigap premium has increased. There are several common reasons for rate hikes. 

• Age-Based Increases: If your policy is "attained-age" rated, your premiums may increase as you get older.
• Inflation: Rising healthcare costs and inflation can lead to general rate increases across the board
• Changes in the Insurance Market: Higher claims or other factors affecting your insurance company's costs can also contribute to premium increases.

Understanding the specific reason behind your rate increase can help you make informed decisions about your next steps.

Review Your Current Coverage

Take a close look at your current Medigap plan. Consider whether the coverage you're receiving is still meeting your needs, or if there are areas where you could potentially save money by adjusting your plan. Some things to consider are: 

• Are you using all the benefits provided by your current plan?
• Are there any areas of coverage you could reduce without significantly impacting your care?
• Is your plan still the best fit for your healthcare needs?

Compare Other Medigap Plans

It's always a good idea to shop around and compare other Medigap plans, especially when your premiums increase. Even if you're satisfied with your current plan, other insurers may offer similar coverage at a lower cost.  Here are some things to consider when comparing plans:
Look at different providers. Compare rates from different insurance companies. Even if the plans are standardized, the premiums can vary by provider. Evaluate Different Plan Types. If your current plan is becoming too expensive,  consider whether another plan type might better suit your needs at a lower cost. Consider switching providers. If you find a more affordable option, you may want to consider switching providers. Just be mindful of any medical underwriting that could apply if you're outside your Medigap Open Enrollment Period.

Consider Switching to a Medicare Advantage Plan

If your Medigap premiums become unaffordable, you might want to explore switching to a Medicare Advantage plan. These plans often have lower monthly premiums and provide additional benefits like vision, dental, and hearing coverage. However, they do come with networks and may have higher out-of-pocket costs, so it's important to weigh the pros and cons carefully.

Contact Your Trusted Insurance Agent

Before making any changes, it's wise to speak with your insurance agent or broker. They can provide valuable insights into your options and help you understand the potential consequences of switching plans or providers. Your agent can also check if you qualify  for any discounts or cost saving opportunities that you might not be aware of.

Check for State Assistance Programs

Depending on your income level, you may qualify for state assistance programs that can help cover your Medigap premiums. Programs like the State Health Insurance Assistance Program (SHIP) can offer free counseling and assistance in understanding your options and finding financial help.

Plan for Future Increases

If you decide to stay with your current plan, it's a good idea to plan ahead for future rate increases. Consider setting aside money each month to prepare for potential premium hikes, or look into other ways to manage your healthcare costs, such as preventive care and healthy lifestyle choices that could reduce your overall medical expenses.

A medigap rate increase doesn't have to mean financial stress. By understanding your options and taking proactive steps, you can find ways to maintain quality coverage without breaking the bank. Whether it's adjusting your current plan, exploring new options, or seeking assistance, there are paths you can take to ensure your healthcare needs are met affordably.

To Get Help Now, Call Our Office

​Rob Davies
Prairie Grove Insurance
800-254-5200
​608-839-0275