Private Insurance carriers that write Medicare Supplement policies have begun releasing their rate adjustments for 2025 and sending notifications to their policy holders via email and US mail. The new rates will go into effect June 1st for Medicare Supplement plans, also known as Medigap plans.
The most popular Medicare Supplement choice for Medicare beneficiaries is Plan G, as it offers the most comprehensive range of costs not covered by original Medicare. Some states have announced rate adjustments siting factors – like gender, location, Medicare deductibles and increased costs in covering claim expenses – that can affect pricing. While premium price adjustments are never welcomed news, it’s a good idea to understand why, how and when yours may change in the future.
Historically, there were minimal rate increases pre-COVID, with adjustments ranging from .5%-3% annually. After 2020, increases have varied by state, but have become more pronounced with increases as high as 12%. Aside from the initial pricing to set your Medicare supplement rate, there may be a few other factors that can impact the amount you pay for your plan.
- Inflation – Like other types of insurance premiums, Medicare supplement rates can be affected by inflation. If the overall costs for health care increase, you may see a change in your Medicare supplement premium rate.
- Demographics – Your age, location, and gender can affect your premium rate for a Medicare supplement plan. Depending on where you live, you may pay more for your coverage and your state.
- Age and gender can play a part in pricing, too. For example, women typically have longer life expectancies than men, so a woman may be offered a lower rate, due to her longer life expectancy.
If you have questions regarding your plan, are turning 65 soon, or leaving Group coverage and want a review of your options, please contact your Agent or our office for assistance.