AARP UHC PREMIUMS

[PamalaB885720]

So frustrating, my premium is going up substantially again this year. When I signed up the information stated policy premiums where issue age based. Only increase would be due to costs, not age. I noticed last year now the same information states premiums are attained age rated. I spoke with a customer relations person and she basically said it is what it is and they really don’t care whether or not the info and how they rate my premium has changed. I don’t have a copy or screen shot of the issue age statement from them, but she said even if I did it wouldn’t matter. So disappointed and now my premium is jumping again twice what it did last year and I’m only turning 67 in January.

[GailL1]

@PamalaB885720 

Most likely, most all of your current premium increase is due to medical inflation but some due to the rating method.  

Most of AARP UHC Supplemental plans (Medigap) plans are (group) community rated plans but states are the ones that give the insurer permission to use various rating methods.  So you can check with your state (where you purchased your plan) and give them the insurers state policy number from your policy and the state should be able to tell you the rating method used for this policy or it could be within your contracted policy also.

KFF.org 10/18/2024 - Key Facts About Medigap Enrollment and Premiums for Medicare Beneficiaries 

I am only copying and pasting a few paragraphs here - the whole link may give you more information. 

Premiums Vary Across Medigap Policies

States establish certain rules for Medigap insurers, including how to set premiums. Premiums may be based on factors such as a policyholder’s age, smoking status, gender, and residential area, even during open enrollment and guaranteed issue periods.

Premium costs are one of the primary concerns for people with Medigap.

There are three different rating systems that can affect how Medigap insurers determine premiums: community rating, issue-age rating, or attained-age rating.

• Community rating: The same premium is generally charged to everyone, regardless of age or gender. Premiums may go up because of inflation and other factors, such as smoking status and residential area, but not due to age.
• Issue-age rating: The premium is based on the age of the beneficiary when they purchase the Medigap policy. Premiums are lower for people who buy at a younger age and will not change as they get older, but premiums may go up because of inflation and other factors, such as smoking status and residential area, but not due to age.
• Attained-age rating: The premium is based on a beneficiary’s current age, so the premium goes up as they get older. Premiums are lower for younger buyers but increase as they get older, which means that premiums may be the least expensive at first but can eventually become the most expensive. Premiums may also go up because of inflation and other factors, such as smoking status and residential area.

States can impose regulations on which of these rating systems are permitted or required for Medigap policies sold in their state. Currently, nine states (AR, CT, ID, MA, ME, MN, NY, VT, and WA) require premiums to be community rated among policyholders ages 65 and older. Four states – Arizona, Florida, Georgia, and Missouri – permit issue-age rating but prohibit attained-age rating, while the majority of states (37 states and D.C.) allow any rating system.

read more at the above link ~

Also the state where you live and where you purchased your medigap policy also makes decisions on medigap policies that can make some states more expensive in premiums than others - IOW, states can add risk factors to medigap policies that will make their premiums higher in that state because of who can be insured and if people can switch policies without underwriting.  

I can tell you more about this if your state is involved  if you care to give your state.