AARP UHC Plan G 2024 Rate Increase

[MichaelH904998]

12.7 % in Arizona averaged husband and wife.  Wasn't expecting such a high increase.  

We do not have the Plus plan or whatever that is discounted in the early years.  That plan basically phases out the discount for add ons that we chose not to take.  So this is just straight G coverage only.  

For those that have been in the plan longer, (this is our first rate increase), what were you seeing over the years.  Anyone know where there this is a historical table?  

[mc85147526]

I

I started off with $110 last year at 65 and its now increasing to $158 later this year  , Plan G AARP UHC . I know there is a discount on the first year but its a big increase

[MichaelH904998]

You seem to have bought the plan with the extras.  Get your materials out.  They shave the discount each year and after that expires you are paying a lot for the extras.  In my case I had the base plan which reflects on only the Part B supplement.  So maybe the difference between 12.7 (or similar for your state) and your total is the discount reduction.  

[GailL1]

Get ready for more - discount being shaved off, area medical inflation, rating method used - age oriented or community rated.

BTW - it is your state that approves the premium raises that is submitted to them by the insurer.  

[mc85147526]

Its supposed to be community rated

[GailL1]

@mc85147526 

Being Community Rated is just one part of the whole - community rated doesn’t mean that it doesn’t go up - it just goes up for everybody in THAT book of policies - Somebody that is 65 and somebody 75 would pay the same community based rate.

But on top of that is the declining discount - you may have started out at a 30% discount and each year loose 5% of that discount until it is all used up.

Then there are the extras if you have any of those - these are outside the federal requirements of what in the plan - these are things the insurer may have put in to entice you to their product rather than the same Plan of another insurer.  Gym membership, a vision discount - stuff like that - these may also change in price.

Utilization plays a big part in medical inflation - while the pandemic was going on, Medicare beneficiaries dropped their useage of regular doctor visits - but now they are back in full force getting their [whatever] care - we hope it is all necessary care but since original Medicare isn’t managed at all - then if it is covered and Medicare pays - the Medigap Plan G pays.

In addition to this, Medicare is now covering some really expensive type care - the new Alzheimer’s treatments and the associated monitoring test.  New Chemotherapy regiments even if they only extend life a few months - they are still FDA approved.  

For those folks who live in states where they have added more guaranteed issue rights - their premiums are higher just because of this.  New York being one of them.

Now you see why almost 50% of the people have decided to get a Medicare Advantage plan instead of fighting these constant GAP coverage increases.

You have the Cadillac of current plans - the most benefits - you picked it - but just be aware you will be paying more and more as Medicare, medical cost and other influencing financials change.

There were other choices that would have been more economically feasible - like the High Deductible Plan G.

When you have some skin in the game, the premiums seem to be much better.  

Medicare.gov- Get MediGAP Cost  

Take a look at these charts - it isn’t just UHC

TELOS Actuarial - Medicare Supplement Rate Actions – 2024 Q1 Update

Are you in a state that allows you to change policies usually to one that is equal to or lesser in benefits at some time during the year?  Like in California where they call it the “birthday rule” or New York - there are others too.

[MichaelH904998]

Not all states actually approve rate increases - ADOI is the Arizona Department of Insurance 

Reference Document

Does the Arizona Department of Insurance (ADOI) approve an increase in my premium?

No. Arizona law does not permit ADOI to approve or disapprove rate increases. However, insurers must
file rate changes with ADOI before using those rates to calculate premium. ADOI is required to review
all individual and small group major medical health insurance rates to ensure that the rates are
“reasonable,” based on the legal standards that apply. (Legal Standards available at
http://www.ecfr.gov/cgi-bin/text-idx?SID=09179ad6214b7033a7036b3758543ddc&mc=true&tpl=/ecfrbrowse/Title45/45cfr154_main_02.
tpl )
Arizona has been designated an “Effective Rate Review” state in accordance with federal standards
(learn more about Effective Rate Review at https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/rate_review_fact_sheet.html ).

Some of the URLS are clipped by this board so copy and paste.  

[GailL1]

Sorry, can't get the CMS link to work even with copy / paste 

But yes, each state decides their own procedure - even in AZ they have to submit actual rate increases for review.  Review does mean for reasonableness - 

But they don't have to submit increases that happen just for the declining discount since those are already planned with the client and the insurer.  

Beneficiaries should be aware of any extras - which could go up in cost also.  Or any extras could be discontinued if not in the body of the policy as a benefit and not an extra.

It just seems that they are making this type of insurance purchase [MediGAP] more complicated - but it is Medicare.

[MichaelH904998]

If you click on Reference document you get the links that should work.  It’s the actual source document.