AARP and United Health Do it Again > 30% Plan G increase in Arizona for 2026

@MichaelH904998 

Medicare Supplemental policies are not health insurance - they are gap insurance - protecting a Medicare beneficiary from a financially catastrophic medical event because (Traditional or Original) Medicare does not have an limit on out of pocket cost.

Medical cost have been rising faster than regular cost of living especially in Medicare but for others also - so as medical cost rise, so goes the cost of Medigap plans.  Medigap plan premuims rise with usage - so the more Medicare beneficiaries use Medicare (and have a Medigap plan) the higher the premiums.

Something else kind of unique to AARP UHC Medigap plans is their use of the declining discounts.  The discount starts out relatively high then along about year 3 - 5 depending on the plan, the discount % begins to be reduce and it continues on like this until you are in your 80’s., when it is suposed to level off somewhat.  This increase may be separate from the regular one, done because of a rise in cost, but it depends on your plan and state where you live.

Then there are those states that have become very liberal in letting people change plans during the year without underwriting - there is a financial reason for underwriting - for the insurers as well as beneficiaries.  As these beneficiaries, with all kinds of heath care conditions and plan usage, change plans during the year to save themselves premium money, they bring their poor health with them to their new plan choice, which could be the one your are on - thus raising the cost of the plan.  But as a resident of the state that allows this, the beneficiary is also allowed to change plans too - taking along their health baggage with them as others also do.

Premiums do tend to be much higher in the states that allow this to happen - i.e. changing Medigap plans without underwriting.  AZ to my knowledge is not a state that has done this.

When Medigap plan premiums get too rich for ones pocketbook - there is always the High Deductible Plan G - very economical premium-wise because it has its own deductible set by Medicare annually- 2026, the deductible for HD-Plan G is $ 2950.  Once you satisfy this with your Part B deductible, your Medicare cost share, your Part A deductible - to meet your HD Plan G deductible - then the Plan G part of the HD plan works just like normal for the remainder part of the year.

I doubt in the next several years that it is gonna get any better - when the height of the Baby Boomers going on Medicare is happening from now to 2030,   They earned it and now they are gonna use it.

Supplements can't deny coverage or pay less based on a health condition. The way they work is if medicare pays for it they are required to pay their share based on the particular plan you have. There is no "we will not pay your copay due to the problem being a pre-existing condition" with supplements. 

Also if you fail medical underwriting you can't switch to that company although you might be able to switch with some conditions and pay a higher tier rate. BUT if you stay with your plan you are currently on and don't switch they can't then use the results of underwriting to change what they charge you.

Completely agree with this sentiment.  

Look at MedMutual Protect.  See if you pass their underwriting.  We just switched.