Facing High Medicare Supplement Premium Increases? Here’s What You Can Do
Facing High Medicare Supplement Premium Increases? Here’s What You Can Do
If you’re a Medicare beneficiary in California, you may have noticed your Medicare Supplement (Medigap) premiums increasing each year. While this can be frustrating, the good news is that you have options to lower your costs and find a plan that better fits your budget, while keeping your choice of doctors and the Medicare medical benefits you love. California offers unique protections, such as the California Birthday Rule, which allows you to switch your Medigap plan with fewer restrictions. Here’s what you need to know about premium increases and how to take control of your healthcare costs.
Why Are My Medicare Supplement Premiums Increasing?
Medicare Supplement plans are designed to help cover the costs that Original Medicare doesn’t, such as copays, coinsurance, and deductibles. However, premiums can increase due to several factors, including:
Age – Some plans use an “attained-age” pricing model, meaning your premiums increase as you get older
Inflation – Rising healthcare costs and inflation can lead to higher premiums across all insurance companies
Plan Experience – If a large number of people in your plan file claims, insurers may raise premiums to offset their costs
Company-Wide Adjustments – Insurance companies periodically adjust rates due to business expenses and regulatory changes
What Can You Do About It?
If your premium increases are becoming unmanageable, here are some steps you can take to reduce costs without compromising coverage:
1. Take Advantage of the California Birthday Rule
California’s Birthday Rule allows Medigap policyholders to switch to another plan of equal or lesser benefits within 60 days of their birthday—without medical underwriting. This means you can find a lower-cost plan with a different insurance company without worrying about being denied due to health conditions.
2. Compare Rates from Different Insurance Carriers
Even if it’s not your birthday, you can apply for a new Medigap plan at any time. Different insurance companies offer the same standardized Medigap plans, but at varying prices. By shopping around, you might find a lower premium for the same coverage.
3. Consider Switching to a Different Medicare Supplement Plan
If you have a high-premium Medigap plan, you might want to explore other Medigap options that still provide solid coverage at a lower price. For example, if you currently have Plan F, switching to Plan G can offer similar benefits at a lower cost.
4. Work with a Medicare Specialist
Navigating Medicare options can be overwhelming, but you don’t have to do it alone. A licensed Medicare agent can help you compare plans, understand your options, and find the most cost-effective coverage tailored to your needs.
Don’t Let Premium Increases Catch You Off Guard
Medicare Supplement premiums will likely continue to rise over time, but that doesn’t mean you have to overpay. Whether it’s leveraging the California Birthday Rule, shopping for a lower rate, or exploring different plan types, there are ways to manage your Medicare costs effectively.
Need help reviewing your Medicare options? As independent Medicare specialists, we can provide personalized guidance and help you find the best plan for your needs. Contact us today for a free plan review!
