Increase in Medicare Part J after a move

[cm46616293]

My mother-in-law recently moved to Nebraska from Illinois. She is an AARP member and has had an AARP/United Health Care Part J supplement for many years. A few years before she moved, I called United to ask about the portability of Part J and also what the costs might be. They said they could not tell me that until after  she moved. (Prior zip 60140, in between the Rockford and Chicago areas; current is 68046, Omaha area; quick research shows average cost of health care is 12%-18% LOWER here than her old area.) She moved, we updated her address with United and she just got a notice that her monthly fee will be increasing from $$578 to over $900! Before we call to ask them about this, what should we know? What should we ask? This is quite concerning to everyone. Thanks. 

[AARPConsumerCare]

Hello @cm46616293, I understand your concerns regarding your mother-in-law's premium increase. We are listening and would like the chance to help as soon as possible. Please send me a private message, so I can get you in touch with our Member Relations team. They act as liaison for AARP service providers. Here is an article that will show you how to activate Private messages: https://aarp.info/47hWcl7 - Daniela R. 

[cm46616293]

Thank you! I am trying to send a private message...my settings...preferences...but there is no "private messenger" tab that the linked article mentions. There is a tab for privacy settings, but no box to enable private messaging. The choices are: show private information in profile (with sub-choices), show email address to (with sub-choices), and show online status to (with sub choices). 

[AARPConsumerCare]

I'm so sorry about that. Please visit https://help.aarp.org/s/article/contact-aarp?cmp=SNO-LITHIUM---&socialid=15357665311 to speak with a representative who can get you in touch with our Member Relations team. They act as liaison for AARP service providers. We look forward to hearing from you soon. - Daniela R. 

[GailL1]

I can only guess that since Plan J was discontinued from being sold in 2010 that there are few beneficiaries still around to use it.  But the ones that are maybe really really using it.   She may have gone from an area (around Chicago) that had several still on the plan since it may have been more populated to an area where there are only a few who remain on this plan.  

It isn’t so much about health care cost with a Medigap policy because it isn’t really health insurance, it is financial protection insurance linked to Traditional Medicare to cover some or all of the beneficiary’s out of pocket cost and it prevents a financial catastrophe due to medical cost as long as one stays within the Medicare system of providers.   Medigap policies do increase with usage cost (the cost of everybody’s usage) and medical inflation and the whatever rating method they used with the policy - community rated, attained age or issue age.  

It's now and has been acting like a closed book policy - IOW, no new younger people are being let in to the plan to balance out the ones that are getting older and sometimes sicker.  So without this type of offset, you might be dealing with the few that are still on Plan J who are really, really having to use it - so up goes the premium.

Since CMS closed the marketing of this plan back in 2010 because it was at the time the richest plan in benefits, then everybody that still has a Plan J has to be getting on up there in age.  My mother had one too but she died in 2015 at the age of 90 and at that time her premiums were almost $ 400 a month.

I checked to see if Nebraska was a state that had expanded some of the guaranteed rules but it does not appear that they are so in order for her to change to another policy she would have to go thru underwriting and then if she has some pre-existing conditions, they could uprate her and charge even more in premiums or not cover any preexisting condition for a period of time - like 6-months.

You can contact the SHIP counselors in Nebraska and talk to them about it - That’s the State Health Insurance Plan Assistance - usually under the state Dept of Ins.

Here is a link and their contact info is on the last page.

Nebraska DOI.gov - Medigap  

It may be that this is the rate - it isn’t a good idea to stay with a “dead” plan for too long after CMS has removed it from being purchased.  Premiums just go up and the longer one waits the higher they will go. 

Maybe the Nebraska Medicare assistants will have some ideas.  I just don’t see any.  Sorry - If nothing else, she could change to a Medicare Advantage plan but make sure it is a high rated plan with at least PPO coverage and the providers your mom wants to see.  That’s just an option if nothing else can be done .  Again, Sorry.

[cm46616293]

Sorry, I wasn't clear. Part J is an advantage plan (eg, premiums include her Medicare payments) and NOT a Medigap plan. Her premiums have gone up a little each year but this  is crazy. 

[GailL1]

@cm46616293 

AARP/UHC - Plan J is a Medicare Supplemental policy.  The premiums you quoted sounded like the Medigap (Medicare Supplemental Plan) Plan J.

But if that is NOT what she has - then look at her card for this insurance and tell us what it reads -

There is NOT a PART J in Medicare - there is a

• Part A - Hospital coverage - paid for by beneficiaries contributions and matched.by the employer while working- after retiring this Part of Medicare (Part A ) is free of premiums as long as they worked long enough to get it premium free - IF NOT, then premium is between $250 - $500 + per month based on if they have any work credits.
• Part B - doctors, and other other providers for mostly outpatient services.  Each beneficiary pays a monthly premium for this coverage - most beneficiaries pay about $ 175.00 per month for this coverage ($ 185.00 for 2025).  Those that have a higher income in retirement pay a larger premium.
• Part D is the prescription drug program - and it covers medications that have been approved and are on the insurance plans formulary - premium vary for 0.00 to whatever
• Part C - these are the Medicare Advantage plans - they are an alternate form of getting the Medicare benefit - these are managed care and most already come with a built in prescription drug program and sometimes with extra benefits like dental, vision and hearing.  Premium range from 0.00 to a bit more BUT never $ 900 a month or even $578.  Those with higher income pay more sometimes a lots more based on their income.

Everybody pays for the Part B premiums and the Part A premium if not vested in the Hospital coverage part of Medicare.  

Everybody has to have a Part D - and pays their premiums

Part A premiums (if applicable) and Part B premiums and sometimes Part D premiums are deducted from one’s Social Security monthly benefits.

I will be happy to help you but you need to tell me exactly what she has now.  Might this be a union Medicare plan or some other org. Medicare plan.  

Just read  the plan’s name off of her insurance card and post it - you don’t have to give her account number - just the name and where she got it from if it is a benefit from a union or other organization.

Maybe she is having to pay a premium for Part A, maybe her Part B premiums have a surcharge because she has high income - 

Here are the Medicare cost for 2024& 2025 - 

Medicare.gov - The Cost of Medicare 2024 / 2025 

Here are the surcharge premiums for those beneficiaries that have higher income.

CMS.gov Medicare Cost 2025 with Income Related Monthly Adjusted Amounts 

Like I said give more info -and I will be glad to help if I can.