Understanding Medigap Rate Increase History and Trends

Getting the right Medigap plan can feel overwhelming. Trust me, I get it. Sorting through plan options, trying to predict future costs… it’s a lot to handle. You need a plan that offers great value today without breaking the bank tomorrow.

A huge part of this is understanding Medigap rate increase history. By understanding this, you can make smarter choices about your Medicare supplemental coverage.

Understanding Medigap Rate Increase History

Let’s face it, nobody likes unexpected price hikes. That’s why getting the Medigap rate increase history in your area is so important. It’s not just about today’s premium; it’s about understanding how that cost might change over time.

Think about it this way: You wouldn’t buy a car without checking its maintenance history, would you? The same logic applies to your Medicare Supplement Insurance.

By looking at a company’s Medigap rate increase history, you gain valuable insights into potential future costs. It’s about making a savvy, well-informed decision that gives you peace of mind for years.

RELATED: Is Supplemental Insurance Worth It?

Comparing Medigap Companies by Rate Increases

We know you’re anxious to get a report on the history of the Medigap rate increases in your area. Our service is free. Click the link below to get started.

Get a Free Medicare Supplement Rate Comparison

Our free report will show you, by percentage, how much an insurance company raised its rates over the past couple of years. It’s the best way to predict future rate increases. It will also show you current Medigap premiums for the Medigap policies you request.

Why Does Medigap Rate Increase History Matter?

Choosing a Medicare Supplement plan involves comparing benefits and premiums from different insurance companies. It’s about finding a balance between your healthcare needs and your budget. Understanding the history of Medicare supplement rate increases is key.

Here’s why it’s so crucial:

• Predictability and Budgeting: You can anticipate potential future costs, including premium increases, which allows for better financial planning and helps avoid surprises when those renewal notices arrive.
• Comparing Insurance Carriers: Comparing the Medigap rate increase history of different companies side-by-side helps you get a clearer picture of their pricing trends. This knowledge empowers you to select an insurance company known for its rate stability.
• Peace of Mind: Knowledge is power, especially regarding health insurance. By understanding the historical context of Medigap rate increases, you can make more confident, informed choices about your coverage, ultimately giving you greater peace of mind.

How to Research and Compare

So how do you actually find and decipher this rate information? Let’s break it down:

• Ask for a Rate Increase History Report: Start by using our free service or contacting insurance agents or companies directly and requesting a rate increase history report for your area. Consider exploring whether the company adjusts its rates based on factors like inflation or changes in healthcare costs in your region.
• Online Comparison Tools: Many websites offer free Medigap rate comparisons, allowing you to compare plans and pricing and even glimpse historical rate trends. Websites like MedicareWire allow you to input basic information and view a personalized rate increase report based on factors like location and age.

When reviewing Medigap rate increase history, remember:

• Past performance is NOT a guarantee: While a history of smaller increases might suggest future stability, it’s NOT a foolproof predictor. External factors such as legislative changes or shifts in healthcare utilization patterns can influence future rates.
• Consider Market Share: Generally, larger, more established companies, especially those with a national market share of 1% or more, tend to have a longer track record and might offer more predictable rate trends compared to smaller companies. This stability often stems from their ability to spread risk across a broader customer base.

Understanding Common Factors Influencing Rate Increases

To make truly informed decisions about Medigap plans, it’s helpful to understand the forces driving rate increases. Here’s a closer look at some key factors that play a role:

• Healthcare Inflation: Just like the cost of groceries or gas, healthcare costs tend to rise over time. This overall medical inflation is a significant driver of Medigap rate adjustments.
• Utilization Trends: If more people in a certain area or age group start using healthcare services more frequently or require costlier treatments, it can impact rates. Insurers analyze these trends to ensure they can cover future claims.
• Changes in Technology and Treatments: Advancements in medical technology often come with higher price tags. As new treatments and technologies emerge, insurers may adjust rates for these potentially more expensive options.
• Policy Rating Method: There are several different ways carriers rate their policies, including issue age rating, attained age, and community rating.

Making Informed Decisions for Your Future

Remember, comparing Medigap rate increase history isn’t just about finding the cheapest plan today; it’s about understanding long-term value. Consider your individual healthcare needs and how those might evolve in the future.

Do you anticipate needing more frequent doctor’s visits or specialist care? Are you generally healthy and expect relatively low healthcare utilization? These factors can help you weigh the importance of rate stability against other plan features.

Ultimately, the best Medigap plan is the one that aligns with your budget and health status and provides peace of mind, knowing you’re covered for the road ahead. Take the time to research and compare options thoroughly. Don’t hesitate to ask insurance agents or representatives for clarification on rate histories or any unclear plan aspect.

Medigap Rate Increases by Company

In general, MedicareWire does not make recommendations on Medigap insurance companies. We are not an insurance agency. We are a Medicare insurance consultancy. Our job is to help people find the best plan for their situation.

That said, we offer this recommendation: When comparing Medigap insurance companies by rate increases, note the company’s market share. We do not recommend buying a Medigap policy from an insurance company with less than a 1% market share.

In our experience, insurance companies with a national market share of less than 1%:

• Have higher and more frequent rate increases
• Are more likely to go out of business
• Are more likely to be bought out by larger companies

Some of the Medicare Supplement companies that have more than a 1% market share include:

1. AARP/United Healthcare
2. Mutual of Omaha
3. Humana
4. Cigna
5. Aetna
6. USAA

United Healthcare Medicare Supplement Rate Increases

United Healthcare (UHC), which sells most of its Medicare Supplement under the AARP brand, is the largest health insurance company in the United States. UHC has more than a 30% share of the Medicare Supplement Insurance market.

UHC Medigap rates increase between 3.0% and 5.0% in most years. They have been in the market for over 25 years and have an A+ rating from AM Best, the largest credit rating agency in the world.

Get a Free Rate Comparison on AARP/UHC Medigap Plans in Your Area

Mutual of Omaha Medicare Supplement Rate Increases

Mutual of Omaha (MoO) is one of only two life insurance companies with more than 1% Medicare Supplement Insurance market share.

Founded in 1909 by a medical student at Omaha’s Creighton University, Mutual of Omaha is now a Fortune 500 company offering insurance and financial solutions throughout the United States. They have been in the Medicare Supplements business for 57 years.

MoO offers Medigap coverage across the U.S., except in Massachusetts. However, plans vary with each state. In 2018, they also added offerings for Medicare Part D prescription drug coverage.

In our analysis over the past 10 years, Mutual of Omaha has the best long-term rate stability of all life insurance companies, which tends to result in less aggressive annual price increases. Over the past five years, their rate has increased by about 6%.

Mutual of Omaha’s Medicare Supplement Plan G premiums start at roughly $120 monthly. They are competitive industry-wide on Plan F, G, and N.

Get a Free Rate Comparison on Mutual of Omaha Medigap Plans in Your Area

Humana Medicare Supplement Rate Increases

Humana is a large, nationwide, health insurance company offering competitive Medicare plans and rates, including a wide range of Medigap plan options.

Established in 1961, Humana’s entry into healthcare was in nursing homes and hospitals. It didn’t establish its first health plans until 1984. They have been selling Medicare Supplements for over 12 years.

Known primarily for its HMO and PPO health plans, Humana provides Medicare coverage to more than 10 million people nationwide as of 2023, 3.1% of whom are enrolled in a Medigap plan.

Humana sells Medigap plans A, B, G, and N in 49 states, Washington D.C. and Puerto Rico. It does not sell plans in Virginia. It also sells the high-deductible version of Plan G. Plans C, F, and high-deductible F are offered to people who were eligible for Medicare prior to 2020.

Humana has a long history of stable premiums. Their base rate increases average between 4% and 5% per year. In states with attained-age policies, members generally see a 0% to 3% aging increase depending on their birth date.

Humana’s best-selling plan is Medicare Supplement Plan G, which has an average entry rate of around $130 per month.

Get a Free Rate Comparison on Humana Medigap Plans in Your Area

Aetna Medicare Supplement Rate Increases

Aetna is one of the leading providers of Medicare Supplements, offering a wide variety of plan options and competitive rates.

Aetna Medigap plans have no network restrictions. You can see any doctor who accepts Medicare. If you move to another state, you can keep your plan as long as you continue to pay your premiums.

Depending on where you live, Aetna sells A, B, F, G, and N plans, including the high-deductible F and G plans. They do not sell shared-cost plans, including Plan K. Premiums vary based on a person’s location, age, gender, and tobacco use.

Originally founded in 1853 as a life insurance company, Aetna expanded into health insurance over the years. Today, it serves an estimated 39 million customers. In 2018, the company was acquired by CVS Health, creating a more integrated health solution for its customers.

Depending on the location, Aetna offers community-rated, attained-age-rated, and issue-age-rated policies. Currently, we do not have accurate information about Aetna’s long-term rate history. However, recent rate increases have been as high as 9%.

With an A financial rating from AM Best, Aetna’s financial outlook is strong. Although the Better Business Bureau (BBB) gives them an A+ rating, customer service complaints online are concerning.

Get a Free Rate Comparison on Aetna Medigap Plans in Your Area

Cigna Medicare Supplement Rate Increases

Cigna is a Fortune 500 health insurance company. It offers many different health insurance policies, including Medigap plans and Medicare Advantage plans. In some areas, they offer premium discounts for customers who live in the same household.

Cigna Medicare Supplement plans are available in 48 states and Washington, D.C. In most areas, they offer the most popular lettered plans, including plans A, F, G, and N. Cigna also offers low-cost options, such as the high-deductible version of Plan G.

Cigna’s premiums vary by state and generally fluctuate depending on a person’s age, gender, tobacco use, and plan rating types required by each state. In our experience, Cigna’s rates are generally in the middle of the pack, and they are rarely the lowest in any market.

However, Cigna’s rates and rate history largely depend on where you live. In the California market, for instance, Cigna is competitive. In neighboring Arizona, premiums and rate increases are high and not competitive. For example, recent rate increases in Arizona have been as high as 13% per year.

Cigna has an “A” AM Best rating, and their Medicare Supplement star rating on Consumer Affairs is 3.9 out of 5. We found some complaints about people’s claims experience, which isn’t uncommon, but most reviews praise Cigna’s customer service.

Conclusion

Medigap rate increase history isn’t about memorizing a bunch of numbers. It’s about empowering you, the consumer. You’re taking control of your healthcare decisions.

FAQs about Medigap Rate Increase History

Why do Medigap rates increase over time?

Medigap rates can increase due to several factors, including rising healthcare costs, inflation, and how insurance companies price their plans. Additionally, some pricing models, such as attained-age-rated plans, will automatically increase your premiums each year as you age.

How often do Medigap rates increase?

Medigap rate increases can vary by insurance company. Some companies raise rates annually, while others may adjust their rates every few years. Rate increases typically happen once a year, but the timing and frequency can differ depending on the insurer and their pricing model.

What factors contribute to Medigap rate increases?

Several factors contribute to Medigap rate increases, including age, overall healthcare costs, inflation, and the insurance company’s claims experience. Insurers may also adjust rates based on your state and other demographic factors.

Are some Medigap plans more prone to rate increases than others?

Yes, some Medigap plans are more prone to rate increases. Plans priced based on age tend to experience more frequent rate hikes as you get older. Community-rated and issue-age-rated plans may see fewer increases as they are not directly tied to your age over time.

Can I switch Medigap plans if my rates increase?

Yes, you can switch Medigap plans if your rates increase. However, switching plans after your initial enrollment may require medical underwriting, affecting your eligibility or premiums based on your health status. It’s important to compare your options and consider the potential impact before changing.

How can I minimize the impact of Medigap rate increases?

To minimize the impact of Medigap rate increases, consider shopping around for different plans, looking into community-rated or issue-age-rated plans, or working with an insurance agent to explore more stable options. Additionally, maintaining a healthy lifestyle may help you qualify for lower premiums if you need to switch plans.

Can Medigap premiums increase?

Yes, Medigap premiums can increase over time. These increases may be due to rising healthcare costs, inflation, and your insurer’s specific pricing model. Premiums can also go up as you age, especially if your plan is priced based on attained age. It’s common for Medigap premiums to rise annually, so planning for potential increases in your budget is important.