AARP Medicare Supplement Plan G with United Healthcare - Premium Increases

[VirginiaB166096]

My husband and I have had the AARP Medicare Supplement Plan G plan for LESS than 2 years. He is 18 months in; I'm at 16 months. In that time, we've seen 2 rate increases and the $2.00 incentive to be billed and pay together has disappeared. What's with the money grab by UHC (and AARP)?

My premium has gone from $106.64 to 131.69 with an interim hike and his has gone from $122.88 to $159.80 with another increase scheduled for Jan 2026. 

The literature we read when we subscribed to this AARP plan was that our rates would not increase, yet here we are. A bait and switch? A lie in the advertising? Which is it?

And why separate the bill so we lose that $2 incentive? Really?  You need to take back that $2?

I would love a cogent explanation from both AARP and United Healthcare.  Last time i inquired they simply told me that the rate went up because the rate increased. (Kid you not!)  I really would love to know why the rates increase and what we should expect going forward. More annual increases?

It seems like no matter what you read in the sales literature, it won't be that way IRL. AARP and United Healthcare are making billions off seniors. And always, always, going after more and more $$$$. SMH at the greed.

We will be shopping around next year. AARP can do better to negotiate on our behalf, but no doubt they are in bed with UHC. Gotta keep those lobbying dollars coming in . . . but then what are you doing on our behalf? Or just bleeding us dry?

[GailL1]

@HughW290135 

What state are you in ?  In some states you can change plans without underwriting.  

Here is some info for you so that you can see how much some companies are paying out for Medicare Supplemental claims.  So it isn’t just UHC where premiums are gonna go up.

National Association of Insurance Commissioners - 2024 Report - 2023 Medicare Supplement Loss Ratios 

Think about it - Medigap insurers have a very specific thing they cover - what traditional Medicare does not cover.   That’s ALL that Medigap plans cover - in that respect they don’t even have any control over what they pay - IF Medicare pays; the Gap policy pays. Even down to what they pay is based on a figure that was negotiated by another entity (Medicare). They don’t make ANY health decisions - so they are considered in this computation only because of the target of those who are the Medigap Insurers.

In that respect, they are only considered to be a health coverage because of what their payment is based upon - Medicare.

Actually, you should not even blame the insurer - it is you and your fellow beneficiaries and the usage of the plan that makes your premiums go up.  It is not like any other insurance where the insurers has some control over the cost of coverage by managed care methods.  I am sure that is why you actually picked traditional Medicare and this type of supplemental coverage.

[HughW290135]

  Thank you for the input. I'm happy with United Healthcare, and I appreciate Medicare in general. What I'm concerned about is that I'm supposed to be in a community rated health plan, and my premium increased 38% at the end of my first year, so did everyone else in the plan get increased 38%, or am I being singled out for some reason? 

[ThomasS111846]

Mine just increased 11%. $215 to $239. Yours seems very steep! I'm in my first year of coverage.

[GailL1]

@HughW290135 

If you are in a community rated plan, they cannot single you out for any increase - not because of your age or health conditions.  However, plans have different reductions in their declining discount rates - if you have an annual declining discount, that may differ from others - more or less in amount. 

People pay higher premiums for their Medigap plan based on only a few reasons especially when it is community rated and not age related.   Your premiums go up when:

1.  The usage of the plan escalates - this is for both the number of people filing claims within the plan or for the cost of the specific claims - so the claims amount increase for either.

2.  State legislation changes 

• that increases the guaranteed issue period or when a person can enter (disabled) or change plans WITHOUT underwriting.  This allows for people who are perhaps older and sicker to enter the plan increasing the risk within the plan.
• that increases the amount of reserve monies that the insurer may have to keep on hand to pay claims
• that taxes certain types of plans

Healthcare cost are high - and your increases in premiums for a Medigap plan will continue.  If you want to control your premium cost, the best way to do that is to accept some of the risk.  

A high-deductible Medigap Plan G is an excellent example.  For 2025, the beneficiary covers the 1st $2870 of the plans cost (the part that Medicare does not pay- just like your Plan G)  Once that is met in 2025, the HD Plan G works exactly like your Plan G.  The Part B deductible is covered in the HD limit of $2870.  Premiums for this HD Plan G are MUCH lower than a regular Part G.  In fact, sometime premiums of a HD Plan G actually go down rather than up .  

There is a tremendous difference of the regular Medigap Plan G and the HD Plan G - 

It is like any other insurance plan like auto or homeowners insurance where you can increase your risk (as in the deductible) and there are savings in the Premium cost of the plan.

But your have a regular Plan G - that’s pretty much the current cadillac of Medigap plans currently since CMS has discontinued those plans that were even more lucrative in benefits.  That could also happen with Plan G too years down the road - like 2030.  Then the plan is no longer sold so anybody that stays with it after this date, would have their premiums go up, up, up because no younger and healthier are being put into the plan to offset those who are older and sicker staying in the plan.  This could also happen if the insurer closes book on your particular plan.  So both CMS (Medicare) and the insurer could close book on any plan.

The other problem with cadillac type Medigap plans like you have with your plan is that premiums increase while many people are using up their retirement savings so they have a double financial whammy - but they still have their cadillac plan until they may not be able to afford their Medigap premiums anymore.  

Medigap coverage is optional and the only thing that the Feds do is regulate the actual what is covered in each of the alphabet identified plans.  Otherwise, your state has more control over who and how can enter or change in the plan and the premiums.

[TRL1111]

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@HughW290135 wrote:

I'm happy with United Healthcare,

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There's really nothing to be happy or unhappy about with a supplement.  Someone here has said that supplements aren't health insurance, but instead financial protection plans.  That's a good description, and something that's not well understood.  

A supplement has no say on what it pays:  if Medicare pays, the supplement pays your 20% share on your behalf.  It's automatic.  Supplements make no medical or treatment decisions.  They just get a bill from Medicare and write a check to the provider, and it doesn't matter to you who's writing that check.

So there's rarely any reason to contact the supplement insurance company, so there's nothing to be happy or unhappy about when it comes to how they operate.  Except the premium they charge.  

[TRL1111]

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@HughW290135 wrote:

I'm supposed to be in a community rated health plan, and my premium increased 38% at the end of my first year, so did everyone else in the plan get increased 38%, or am I being singled out for some reason? 

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In a true community-rated plan (which AARP/UHC is not, except in states (like New York) that require community-rated plans), everybody in a plan pays the same premium regardless of their age.  So yes, if you were in a true community-rated plan, everybody would be getting a 38% increase.

But you're not.  As for your 38% increase, at this point you're getting the maximum discount available under AARP/UHC pricing scheme, and your discount is going to go down every year.  So people who are older than you with your same plan had premiums that went up even more than your 38% because their discount is lower than yours.  

Once you're in a plan, there will be no singling out of you.  

You can go to Medicare.gov and see all of the supplements that are available to you, and if you enter your birthdate, etc., you can see what your premium would be under each plan.  That could give you an idea of how your premium compares to other supplements you could buy instead.

[SummerOnTheWay1]

📎  Hugh @HughW290135 , maybe it is time to see what other options may work for you. Take care, Nicole  👵

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[*** @HughW290135 wrote 4/7/25:

I've been on the United Healthcare AARP community rated Plan G for one year. I am 66 now. I just received a 38% increase in my monthly premium, from $150.00 to $208.04. I expected an increase of maybe 10% to 15% because of inflation, but holy cow!  That's almost $700.00 per year. ***]

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[GailL1]

@SummerOnTheWay1 wrote

. . . . . maybe it is time to see what other options may work for you. Take care, Nicole 

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That would have to be determined by the state where the poster lives and their overall health condition if they have to pass medical underwriting to switch policies.  

States determine this in their rules for Medigap guaranteed issue  or underwriting as a method to change policies.