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?

[StacieS366357]

The same happened to me! The chart United HC sent me showed steady premiums for 4 years and then I ended up with a 26% increase!! I went online as if I was shopping for the first time and the chart still shows the same thing.  I called them this morning to find out what my premium will be in June and they said no info is available yet.  They did say I could move to a lower plan if I couldn't pay :(.  Researching on line- they are trying to get between a 15-23% increase! So now, if I change plans, I have to qualify for underwriting. 

[GailL1]

@StacieS366357 

All Medigap plans increase because of medical inflation.  That’s the normal increase in most every year - your state is the one that reviews the rate request that the Medigap insurers submit to them for approval.  

If you live in a state that has expanded Medigap guaranteed issue then that would also make your premiums increase because it allows people to switch plans without underwriting and thus high users can switch to a plan that is less costly for them. 

Medigap plans can also increase based on their rating method. 

• issue age
• attained age
• community rated

I think most AARP UHC Medigap plans are community rated but they may also have a declining enrollment discount - you descibed this in your post.

So many, maybe most,  AARP UHC Medigap users can have at least (2) increases a year - (1) for the medical inflation cost or loss ratios  (2) declining enrollment discount - 

Even though Medigap coverage is NOT medical insurance, it is so related that medical inflation, increased usage, higher cost of treatments and test, does affect it greatly.  

The nature of the beast, so to speak.

Your state will determine if you have to go thru underwriting if you change plans.  So what is your state?

[StacieS366357]

Well I learned two things today.  Per the company agent that I am using he said that a 26% increase was higher than most other companies.  I also learned about the birthday rule today via my own research.  After speaking with someone in the field they said that would cause rates to go up in those states.  Still at that rate if it continues our rates will double every 4 years!

[HillaryH491574]

agree with you totally. Shame on United Healthcare and AARP gap plans. I just received a letter from UHC saying I am getting an 18 % increase in premiums for 2026. And not for any reason other than greed. They are hugely profitable!

[TRL1111]

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@HillaryH491574 wrote:

Shame on United Healthcare and AARP gap plans. I just received a letter from UHC saying I am getting an 18 % increase in premiums for 2026. And not for any reason other than greed. They are hugely profitable!

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What data do you have to support that?  AARP/UHC is hardly unique in having an increase of about 20% this year.  Some are much higher.

Is there a reason you're not changing supplements?

[MarjorieM238987]

Been on this plan for 13 months and they’ve increased my premiums twice - two consecutive months - for a total of 25%. This is not sustainable. The coverage is so-so. Also, has anyone else noticed their CEO received a $10M bonus last year? Guess they’re really hurting, eh?

I will very likely be departing UHC. 

[TRL1111]

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@MarjorieM238987 wrote:

Been on this plan for 13 months and they’ve increased my premiums twice - two consecutive months - for a total of 25%. This is not sustainable. The coverage is so-so. ... I will very likely be departing UHC. 

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I don't understand your premium increases.  When I signed up, they guaranteed my rate for six months, and sure enough I had an increase six months after I signed up.  And then I got the annual increase that everybody gets the next July.

If you've been on it for 13 months, then the six months would have happened a long time ago.  Maybe in your state they guarantee the premium for one year?  I'll never truly understand how UHC prices their plans--I just kind of dance around the edges.

But I'll note that as long as you're enjoying the benefit of an age-related discount, you will have two premium increases a year--one on your birthday because you've become a year older, and another one in July or whenever your plan increases everyone's premium.

But more importantly, in what way do you consider the coverage of your Plan G supplement to be "so-so"?  It's the most comprehensive supplement available to new enrollees, and covers everything 100% once you pay a deductible of $257.

Also, what's stopping you from departing UHC right now?

[DeborahB303583]

I too just received notice of a mid-term premium increase in my Plan G.  Reason stated is “because of multiple adjustments to your account”.  It shouldn’t be an IRMAA adjustment, what other kind of adjustments would there be?

[kgtyson]

Same for me. Just got notice of an increase starting in June, due to multiple adjustments on account. Would love to know what that means. I had no extraordinary claims this year. 

[GailL1]

@kgtyson 

Maybe it means the (2) different premium increases for your Medigap plan - (1) the AARP/UHC declining discount based on age and (2) the one for the plan’s rate increase based on the insurer’s medical loss ration(claims:premiums) , usage utilization , medical inflation by area , rating method used by the insurer. 

[TRL1111]

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@GailL1 wrote:

Maybe it means the (2) different premium increases for your Medigap plan 

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I've wondered how they do the notice for people whose birthday is the same month as the annual adjustment.  My birthday is in May, so on the schedule for premiums for the upcoming year they sent me, there's a change in July for the mid-year one, and another change in May for my birthday one, but I don't think they actually label them.

[MarkP351941]

II just got hit with a 20.4% increase. I enrolled in Plan G in July of 2021 with a premium of $146. As of July 1, 2025, it goes up to $232.83!

[TRL1111]

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@MarkP351941 wrote:

II just got hit with a 20.4% increase. 

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20% is not an uncommon increase this year  You can easily look at other supplement options available to you at medicare.gov, if nothing else to compare your premium to the premium at other companies.  All supplements are being hit hard this year.

[Winter2025VA]

Mark @MarkP351941 , SO MANY seniors are dying every day/night due to NOT being able to afford medical help. I just hope I stay healthy at age 67. Take care, Nicole  👵

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➡️***[ Mark wrote on Wednesday 4/30/25: I just got hit with a 20.4% increase. I enrolled in Plan G in July of 2021 with a premium of $146. As of July 1, 2025, it goes up to $232.83! ***]

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[TRL1111]

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@Winter2025VA wrote:

SO MANY seniors are dying every day/night due to NOT being able to afford medical help. 

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Can you share the source of the data this is based on? 

It seems counterintuitive because with Medicare, seniors are protected against healthcare costs, and certainly moreso than people under 65, many of whom have health insurance policies with huge deductibles, or maybe no insurance at all if they're in a state that didn't expand Medicaid and they don't have enough income to qualify for an Obamacare plan with a subsidy.  

[Winter2025VA]

Lol @TRL1111 , I will let you post the link for me!!!  🤣😂

➡️[*** YOU POSTED: Can you share the source of the data this is based on?

[MarkP351941]

II'm actually 70.5. Like a lot of seniors, the only increase in I see in income is Social Security. My annuity and pension income are the same as they were in 2021. Fortunately I still work part-time which helps make up the difference. I strive to live within my means but inflation and enormous increases in premiums don't help at all. God **bleep** UnitedHealthcare!

[Winter2025VA]

And as we AGE Mark @MarkP351941 , alot places will NOT hire us. Congrats on making ends meet for now. Take care, Nicole  👵

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➡️[*** Mark wrote Wednesday 4/30/25: I'm actually 70.5. Like a lot of seniors, the only increase in I see in income is Social Security. My annuity and pension income are the same as they were in 2021. Fortunately I still work part-time which helps make up the difference. I strive to live within my means but inflation and enormous increases in premiums don't help at all. God **bleep** UnitedHealthcare! ***]

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[ChristopherK269505]

Consider yourself lucky.  My Plan G premium will increase in June from $283.22/month $314.59/month.  I live in South Florida where healthcare is expensive (and a certain hospital group has a stranglehold on medical services in the area) but I’m only 69 and healthy with very few claims. At least I get free gym membership.   My wife has United American for her medigap policy with a high deductible but premiums are only around $65/month so I’m going to look into that at renewal time. 

[TRL1111]

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@ChristopherK269505 wrote:

At least I get free gym membership.   My wife has United American for her medigap policy with a high deductible but premiums are only around $65/month so I’m going to look into that at renewal time. 

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There is no "renewal time" for supplements.  You can buy them year-round.  People in most states have to undergo medical underwriting in order to buy a supplement, but that's the same year-round (unless they're in one of the few states that either never allows underwriting or has a specified period (unrelated to open enrollment at the end of the year) during which people can do some switching without undergoing underwriting).

So if you want to look into switching, there's no reason to wait because Florida doesn't have any period during which people can switch without medical underwriting.  But be aware that all supplements in Florida have issue-age pricing, so buying a supplement when you're older might mean you have a higher premium than if you'd bought that supplement when you were 65, for example.

And also be aware that if the free gym membership is important, most supplements don't offer that benefit.  But it never hurts to shop around to see what your options are.  You can easily do that at medicare.gov and searching for supplements available in your zip code, along with premiums.

[TRL1111]

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@VirginiaB166096 wrote:

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?

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I, too, would like to see where you read that your premium would not go up, because it's simply not the case.

Even with issue-age premiums, which are based on the age you were when you bought the plan, premiums go up over time even though the age at which you were issued the plan doesn't change.

Moreover, with most AARP/UHC supplements, the premium is calculated using a discount that goes down as you get older, so they absolutely WILL go up--if the discount goes down then obviously the premium goes up.

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@VirginiaB166096 wrote:

We will be shopping around next year. 

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If you're thinking about the annual open enrollment period at the end of the year, it has absolutely nothing to do with supplements.  If you can pass medical underwriting, you can change your supplement any time you want.  So do it now.

If you can't pass medical underwriting, then you're stuck with the supplement you have, although different carriers have different underwriting standards, so you'd be well advised to talk to an insurance broker, or more than one because they don't all sell policies for every company.

Or if you can't pass medical underwriting, but are in a state that has periods during which people can switch supplements, you can switch then (but each state that offers this has different rules).

If you're unhappy with your supplement and are healthy, there's no reason to wait to change it.  If you're not healthy enough to pass medical underwriting, then see if your state has a period during which you have "guaranteed issue" rights to a supplement (usually around your birthday, or the policy anniversary date).

[GailL1]

@VirginiaB166096 

What literature did you read that your premiums will not increase?  Can you produce it or link it?  I think you may have confused what “community rated” means since most AARP/UHC supplemental plans (Medigap) are rated this way.

• Community-rated Medigap plans, also sometimes called "no-age-rated" plans, set a flat premium for all beneficiaries within a specific area, regardless of their age or sex. 
• Community Rated means your premium will not increase simply because you are getting older, but premiums can still increase due to factors like inflation or changes in the cost of healthcare. 
• Community rated means if you and your neighbor enroll in the same Medigap plan from the same provider in the same area, you will both pay the same monthly premium, even if you are different ages. 
• CommunityRated Premiums are based on the location where you live, not your age or health status.

Now, it is common knowledge that insurers can never cancel a Medigap plan EXCEPT for (1) non payment of premiums (2) a non-truth on the application 

All Medicare plans are individual plans and there have been folks on this board that have had a very hard time with these joint billings so perhaps now they have changed it - I have no idea.  

Premiums can increase for any Medigap plan based on healthcare inflation, usage in the plan.  They are also higher in states that have expanded their guaranteed issue rules to allows those with higher risk to go into Medigap plans without underwriting.  

Medigap coverage is not really health insurance but does go up based on healthcare cost because of its connection to traditional Medicare.  The true reason for a Medigap policy is to protect the beneficiary with Traditional Medicare from a catastrophic financial event due to health if they only have Traditional Medicare since there is NO annual or lifetime cap on the beneficiary’s cost under Traditional Medicare.  It is optional coverage.  

Please review what a Medigap policy is and how any of them are rated before you change policies - go into it eyes wide open.  And just don’t read about them on this Medicare site - go to your state’s Dept of Ins. and see if they have have made special state rules about them because these too will affect you. 

Medicare.gov - Medigap Basics 

[HughW290135]

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. 

[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.