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Most Medicare Supplement plans are subject to two increases per year. On your birthdate, and then again an annual inflation adjustment.
This is regardless of whether or not the plan is sponsored by AARP. And while plans G & F offer the most comprehensive coverage, they are also the most vulnerable to premium increases.
Just wondering if any others have experienced the same price increases I have for Plan G, AARP-United Healthcare.
My plan year runs 3/1 thru 2/28 (or 2/27)
Last year my premium was a certain amount. Let's say $136.
The premium increased for March, as expected. It increased to about $142.
Then the premium increased AGAIN for the June payment. It increased to about $145.
I thought the plan premiums would increase once annually. But mine increased twice in 2022. I'm not sure about 2021.
Has anyone else experienced increases for a Medigap plan more than once a year?
Yes. UHC reduces its discount annually (usually 2% or 3%) until you reach age 81/86 because of age, depending on when you bought the policy, and also implements an inflationary increase on the anniversary date of the policy. Looks like the March increase of $6 was due to inflation, the June increase reduction of its annual age discount.
An earlier post on the issue:
Quote:
Originally Posted by SCGamecock
For new enrollments effective 10/1/21, it is a 45% discount that slowly decreases until age 86.
"The discount is 45% at ages 65 through 67. The discount percentage reduces by 2% each year on the anniversary date of your plan from age 68 to age 79 and then by 3% from age 80 until it reaches 0% on the anniversary date of your plan on or after age 86. The discount is available to new applicants who are accepted to enroll in an AARP Medicare Supplement Plan for October 1, 2021 and after Plan Effective Dates."
Note: None of my bookmarked links on UHC pricing are working, including the above which clearly explains the discounts. UHC may be doing some site maintenance or making other changes.
We actually still have an AARP/UHC F plan. Ours is for both myself and my husband, so we get hit with 3 increases per year. One yearly general increase, one on my birthday and one on hubby's birthday. I would assume the same type of increases would apply to all their plans.
I am hoping to move to plan G as I finally got my 3 year clearance with no complications from a major surgery that I had. So should be able to pass underwriting now.
I find it odd and a bit unsavory that price increases on an insured's birthday, since the UHC Plan G is supposedly "community pricing rated," unrelated to age.
I find it odd and a bit unsavory that price increases on an insured's birthday, since the UHC Plan G is supposedly "community pricing rated," unrelated to age.
Not sure if/when you hit 70 go into another bracket on your birthday. You may get letter from AARP/UHC detailing next year's price increase.
Then you have discounts that go away. AARP membership only for 1 year. After that the only "discount" is to have auto bill pay. From their drug plan can do charge to credit card. From plan G or F not set up to do credit card, bank EFT only.
I find it odd and a bit unsavory that price increases on an insured's birthday, since the UHC Plan G is supposedly "community pricing rated," unrelated to age.
It's not the Birthday Increase like Blue Cross where every year your rate goes up on your BD. It's a lessening of the discount which AARP United Healthcare provides from the date of enrollment until you hit the end point of the discount period, which is several years. My discount will end at age 77 and then my rate will stabilize and only change with community-wide, policy-wide increases. Switching to AARP UHC Plan G from Blue Cross has saved me a lot of money as those Birthday Increases were ridiculously high.
I find it odd and a bit unsavory that price increases on an insured's birthday, since the UHC Plan G is supposedly "community pricing rated," unrelated to age.
Community rating means OPEN risk pool - which means increases are diluted by lower costs of newer members in the pool. Unless otherwise mandated by state, only UHC uses open risk pool/community rated pricing which keeps their premiums far more affordable as you age.
An older post on the issue, here - UHC has since extended the age of the discounts for newer enrollees which lessens premiums for younger people:
Quote:
Originally Posted by Ariadne22
You need to know as much as an agent when it comes to policy pricing in order not to be convinced to buy a lower priced attained-age policy which will subject you to excessive rate increases as you age. Therefore, you should familiarize yourself with pricing.
Medigaps have three price structures: community-rated, issue-age rated, attained-age rated.
In the long run, community-rated or issue-age do the best job of controlling prices as you age. In most states, only United Healthcare uses community rating, discounting rates for those under 81. Thereafter, whether age 81 or 101, rates do hot increase because of age. AARP UHC has a huge share (37%) of the Medigap market because of its community rating.
Know that attained-age policies can appear attractive b/c of initial low premiums, but premiums for those policies can easily increase 60% in five years, becoming unaffordable in your 80's. Insurers close attained-age risk pools frequently, locking you into an older sicker risk pool group. At that point, unless you live in a guaranteed issue state your health may preclude switching a less expensive plan. The only option available then is an Advantage plan.
Not sure if/when you hit 70 go into another bracket on your birthday. You may get letter from AARP/UHC detailing next year's price increase.
Then you have discounts that go away. AARP membership only for 1 year. After that the only "discount" is to have auto bill pay. From their drug plan can do charge to credit card. From plan G or F not set up to do credit card, bank EFT only.
I suppose I don't understand the birthday raise in premium. My plan term is 3/1 to 2/27 or 28. My b'day is in December. It seems to me that any raise would take effect on the beginning date of new term. Since "Community rating" is not tied to one's age.
It is what it is, and it's just a few dollars. I just didn't understand it. If a beginning discount "goes away" on your birthday, then that beginning discount isn't for a full year. Supposedly that beginning discount goes up at next term. So the beg. discount seems to be fast-paced to disappear earlier than I was told.
Community rating means OPEN risk pool - which means increases are diluted by lower costs of newer members in the pool. Unless otherwise mandated by state, only UHC uses open risk pool/community rated pricing which keeps their premiums far more affordable as you age.
An older post on the issue, here - UHC has since extended the age of the discounts for newer enrollees which lessens premiums for younger people:
Thank you, Ariadne. Lots of information for me to read and digest! Thanks.
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