AARP Extended Basic Medicare Supplement Plan RW 20% Rate Increase

[MartinS442567]

I literally started my AARP Extended Basic Medicare Supplemental Plan RW on 1 APR 2026.  On Apr 19th I got a letter notifying me of a 20% cost increase beginning  APR 2027.  Seems like a real bait and switch program.  It is like, put a lower rate and get you to sign up for their supplemental and then UHC tacks on 20% the first year.  

[GailL1]

@MartinS442567 

I am pretty sure that there is a disclosure that warns you that you chosen plan can increase in premiums - either from state approval in increases due to usage, risk and medical inflation and in some UHC plan situations, the enrollment premium discount decline - 

With usage, risk, medical inflation and the state laws where you live and their changes to guaranteed issue rights, premiums are gonna keep increasing for the foreseeable future - 

That’s still just a once a year increase - and if you got that declining enrollment discount perhaps it should have been added in separately - UHC also rates your plan as community rated and the others in your state maybe based on a completely different rating methods that also makes as difference in the premiums.  See page 12 of the following link on rating methods.

Medicare.gov - Choosing a Medigap Policy 

Know the rules on Medicare Supplemental plans (MEDIGAP) in your state and keep up with any changes to these state laws so that you will know your options or even increases that are coming about because of law changes in your state.

[TRL1111]

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@GailL1 wrote:

That’s still just a once a year increase - and if you got that declining enrollment discount perhaps it should have been added in separately - UHC also rates your plan as community rated and the others in your state maybe based on a completely different rating methods that also makes as difference in the premiums.  

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Based on what he called his Medigap plan, I'd say he's in Minnesota, where all plans are truly community-rated--everybody in a given area who has the same plan pays the same premium regardless of age.

But to address Martin's concerns, these days it would be a very rare Medigap supplement that doesn't increase in price after a year.  But if you're unhappy, you can switch to a different supplement any time you want as long as you can pass medical underwriting.  If you can't pass medical underwriting and are in your 6-month initial enrollment period, you can switch without medical underwriting but it's not as smooth a process.  But if you're really mad at your supplement company, you could look into it.  But I don't think any company is going to guarantee there will be no premium increase a year from now.