AARP/UHC Medical Supplement Price Increase

[drstahl]

I have been using this Medicare Supplement plan for two years now and just received a letter from United HealthCare telling me that I have been receiving a "discounted rate" and the discount will be reduced each year. 

This is the first time I have heard anything about a discounted rate.  This appears to be a devious way to raise prices and set expectations for future increases.   If a customer has been making too many claims due to medical condition, no other carrier will give them insurance.  Knowing this, United HC knows they can jack up prices as high as they want.  Seems very sleazy.  Has anyone else experienced the same?  

[jcgc50]

Here is a link you can find on the AARP UHC website about the discount. The percent depends on your age when you purchase it. If you sign up at 65 it diminishes over 12 years and starts at 36%. They aren't the only insurer to do that.

https://www.aarpsupplementalhealth.com/content/dam/ole/MedSuppDocs/EnrollmentDiscount-MACRA/StateVar... 

[somarco]

@drstahl UHC Medigap plans in community rated states employ a discount which varies by state. I believe the discount is 30% which is added back in at 3% per year for the next 10 years.

Renewal rate increases will consist of inflation + the discount.

The discount is a marketing gimmick. I doubt the carrier or agent (if you had one) mentioned it.

Pricing formula's are considered proprietary.

Many states do not require renewal increases to be filed with the DOI. Any carrier can "jack up rates" with impunity.

[GailL1]

@drstahl 

Yes, AARP/UHC Medigap policies often begin with a discount that last about (3) years from initial enrollment.

Medigap policies are only GAP insurance connected to original Medicare.  Nothing more.  Their coverage is very specific and all plans designated by the different alphabet classifications all cover the exact same things, in the same way.  Medicare pays / gap coverage pays.  Medicare doesn't pay / gap doesn't pay.

Medicare describes the Cost of Medigap in this link - what rating method does your policy have?

Medicare.gov - Cost of Medigap Policies