Got a Rate Increase Letter? Check Your Medicare Supplement Before You Accept the New Premium
You open a letter from your Medicare Supplement company, and there it is: your monthly premium is going up.
Before you file it away, it’s worth checking your options.
A rate increase doesn’t automatically mean you should switch. But it is a good reason to see whether your current coverage still makes sense for your budget.
Darcy and I offer a free Medicare Supplement review through Central States Insurance. We can help you compare your premium and check whether you may qualify for another policy.
Here’s where I suggest starting.
Find out what the increase actually costs
Look for your new monthly premium and the date it takes effect. Compare that amount with what you pay now, then multiply the difference by 12.
For example, a $25 monthly increase adds up to $300 a year. That’s an illustration, not an insurance quote, but it shows why a monthly change deserves attention.
For your review, have these items handy:
- Your insurance company and plan letter, such as Plan G or Plan N.
- Your current premium and the new amount.
- The date the increase takes effect.
- Your rate increase letter, if available.
Request My Free Supplement Review
Compare the same coverage
In Kansas and most states, Medicare Supplement plans have standardized benefits. A standard Plan G from one insurance company has the same basic benefits as a standard Plan G from another company. Their premiums can differ.
That’s what we mean when we say: “Plan G is Plan G. Your premium isn’t.”
But make sure you’re comparing the same type of policy.
Standard Plan G and high-deductible Plan G have different out-of-pocket requirements. Moving from Plan G to Plan N also changes what you may pay when you receive care.
A lower monthly premium is worth considering. You should also understand what you would pay when you use the coverage.
Massachusetts, Minnesota, and Wisconsin standardize Medigap policies differently.
Check whether you qualify before deciding to switch
Finding a lower price is only part of the review.
Outside your Medigap Open Enrollment Period or an applicable guaranteed issue protection, a new insurance company may ask health questions and can decline your application. State protections and carrier requirements matter.
The annual fall Medicare enrollment period does not automatically give you a new opportunity to buy a supplement without medical underwriting.
That’s why we look at potential savings and qualification together. A quote is not an approval.
If health questions are required, we’ll explain what information is needed and help you understand the next step. Please share medical information privately, not in public comments.
Keep your current coverage while you review
Don’t cancel your existing Medicare Supplement just because you receive a lower quote.
If you apply for another policy, wait for approval and review the new coverage before ending your current policy.
Medigap also provides a 30-day “free look” when switching policies. This gives you time to decide whether to keep the new policy. You’ll pay both premiums during the month you have both.
We can help you coordinate the timing so you understand when the new coverage starts and how to handle the old policy.
Look beyond the first month’s savings
Ask whether the quoted premium includes any discounts and what you must do to qualify for them.
You should also understand that a lower starting premium is not a promise that the rate will stay the same.
The goal is to make an informed decision about coverage you can afford. Sometimes changing companies makes sense. Sometimes keeping your current policy is the better choice.
Why does our supplement review cost nothing?
Darcy and I don’t charge you a fee to review your Medicare Supplement or check your options. There is no obligation to apply or switch.
The review is free. Insurance coverage still has a premium.
We can’t promise a lower rate or approval. If your current policy looks like the better fit among the options we review, we’ll tell you.
We started doing this to help people the way we would want our own parents helped. That means taking time to explain your choices and giving you room to decide.
Let’s give that new premium a second look
You don’t have to figure out that rate increase letter on your own.
Request a free Medicare Supplement review, and Darcy or I can help you understand what you have, compare available options, and check the next steps.
Request My Free Supplement Review
Mike Reed
Central States Insurance, LLC
MedSuppUSA.com
Sources
Official Medicare information is available at Medicare.gov and CMS.gov.