I finally understand why my Medicare Supplement is getting more expensive. In the beginning (age 65), most California plans are under $150 per month. Yet, if you do not take action, it will continue to increase and your smiles will turn to frowns as you get older.
A Common Example
My 85 year-old mother switched Medicare Supplement (medigap) insurance companies and saved $75 per month for the same plan! So, why is my Medicare Supplement getting more expensive? In my opinion, the three biggest culprits are below:
3 Biggest Reasons Your Medicare Supplement is getting more expensive
- You purchased a medigap plan that is based on an “Attained Age” pricing methodology, rather than a community rated model. Therefore, rates go up as you get older.
- Medicare (CMS) annually increases Medicare Part A and Part B deductibles, coinsurance, and copayments. The annual increased copayment responsibility is passed through to your Medicare Supplement (medigap) plan, which of course adjusts rates to offset the higher costs.
- General medical inflation.
Excerpt from Medicare’s (CMS) “Guide To Choosing A Medigap Policy”
Medigap Basics- Medigap Pricing Methodology- p 18Are Medicare Supplements Really All The Same?
Many Medicare Supplement (medigap) plans are excellent, but they are not all the same. So if
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your Medicare Supplement is getting more expensive, research if your policy was filed with the State of California as Attained Age or Community Rated, as depicted above. Rather than do all the research yourself, find a trusted local independent agent who represents many plans. Let the agent do the work, because it costs you nothing.
In California, premiums are the same whether you buy directly from a company or with an agent’s help. And, thanks to the California birthday rule, it is easy to change Medicare Supplement (medigap) insurance companies during your birthday month, each year. Note: This is a California rule, and is not available in all states.