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?  

[MichaelH904998]

And now for 2025 it's another 19%.  I thought UHC was supposed to be reasonable.  

[Victorialk7474]

This is crazy, I was paying 278 and in June the price will be 350.96. When December rolls around  my payment will be 363.42. I am on plan F and have never been hospitalized. There has to be other options available.

[TRL1111]

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@Victorialk7474 wrote:

I am on plan F and have never been hospitalized. There has to be other options available.

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The increasing premiums in Plan F, and the alternatives available, were explained to you a year ago in this thread.  Is there a reason you didn't switch to Plan G back then, since premiums for Plan G are generally lower than Plan F, and can often be cheaper even if you factor in having to pay the $257 Part B deductible yourself (Plan F covers the deductible for you; Plan G does not).

[Victorialk7474]

Who would think,I would have an increase of $100? Also, after reading about the various G plans, I was not about to pay $2780 before my plan kicked in. I therefore, decided to stay put.

[TRL1111]

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@Victorialk7474 wrote:

Who would think,I would have an increase of $100? Also, after reading about the various G plans, I was not about to pay $2780 before my plan kicked in. I therefore, decided to stay put.

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Realistically, anybody in a Plan F should expect pretty significant increases for the reasons stated a year ago upthread--the people in that plan are all getting older with no younger people (with lower claims) to offset them.

And more importantly, the $2,875 deductible is only for high-deductible G plans or F plans, and the high-deductible plans have much lower premiums than the Regular G or F plans.   

Furthermore, Plan G is exactly like Plan F, except you have to cover the $257 Part B deductible yourself instead of having the supplement pay for it.  That works out to $21 a a month, and very generally, Plan G premiums are more than $20/month cheaper than Plan F, so it's often actually cheaper for the consumer to pay the Part B deductible because it's less than the premium difference between Plan F and Plan G.  And if you don't meet the Part B deductible in a given year, it's even more inexpensive to have Plan G than Plan F.  

Plus, looking to the future, in Plan G you're in a "better" pool of people because Plan G is still open to people turning 65, and premium increases should be less than Plan F.

[GailL1]

@TRL1111 wrote:

Plus, looking to the future, in Plan G you're in a "better" pool of people because Plan G is still open to people turning 65, and premium increases should be less than Plan F.

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While that is very true - A Question - How are we to be assured that the Same thing won’t happen to Medigap Plan G - meaning that CMS will close book on it - It seems they do this about every (10) years - closing book on the most benefit lucrative plan(s) and usually the ones that are most popular at the time.

2010 - Plans E, H, I, J 

2020 - Plan F, Plan C

Then the same thing happens to them as time goes by - those that remain in the closed plans as grandfathered are exposed to higher and higher premiums because those there are getting older, sicker and fewer and fewer.  

Are those within these plans when they are closed to new buyers by CMS given a period of time to switch to another plan - I don’t know, I don’t remember ?  

[TRL1111]

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@GailL1 wrote:

How are we to be assured that the Same thing won’t happen to Medigap Plan G - meaning that CMS will close book on it

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We're not assured of that.  

[GailL1]

@Victorialk7474 

To each their own - I don’t consider paying a deductible in the $2000 - $3000 a year range as too much to pay for coverage especially since the premiums are so much more reasonable in a HD Plan G Medigap.

But to each their own - 

However, as you grow older and health care cost continue to rise - those Medigap premiums will get higher.  But you can then choose what you want to do - and depending on which state you are in you may have more or less choices but all expensive.

Not only will Medigap premiums increase, so will premiums for Part B.  

I am fortunate in one way but not so in another.  I have to pay IRMAA premiums on my Part B - that’s an added cost for me that you may not have.  

[TRL1111]

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@GailL1 wrote:

I am fortunate in one way but not so in another.  I have to pay IRMAA premiums on my Part B - that’s an added cost for me that you may not have.  

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For those who don't know, paying IRMAA is required when someone has an income of at least $106,000 a year, or $212,000 a year for a married couple.  Most people wouldn't find much unfortunate about that.  Sure, it's an added cost and nobody ever likes having to pay more, but I'm sure there are lots of people who would gladly accept paying IRMAA if it meant they're pulling in over $100,000 a year in retirement.

[GailL1]

@TRL1111 

That’s why I said “ I am fortunate in one way but not so in another“ - but I disagree with you on who might gripe about the hike in their Medigap plan - 

I got where I am by being frugal and learning about everything that affects me - to find the best way for me.   If not enough income was coming in, before and after I retired,  I worked to figure out a way for me to boost it and did -  

[GailL1]

@MichaelH904998 

Want to know how to keep your Medigap premiums lower, in fact real low sometimes.  

Accept more of your health risk - get a policy with less benefits - or to go real low on the premium plan by accepting more of the risk - 

Check out a Medigap Plan G High Deductible.  In fact, I heard on the reddit board the other day somebody saying that their Medigap Plan G High Deductible plan went down from $ 48 per month to $ 36 per month for 2025.  Sure they have to pay the deductible of (2025) $ 2870 before their plan starts to pay but then it works just like a regular Plan G - and the deductible includes the Part B deductible so really it is only the difference that has to be paid between the two plans - the Regular and the High Deductible Plan G.

[MichaelH904998]

Interesting - saves roughly 1300 a year but risking paying 2850 in deductible.  So if you have really no claims you are better off.  That was me this past year but what of future years.  Good to know.  Mayo in AZ does not take MAP plans so choices are limited if you want to use them.  

[TRL1111]

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@MichaelH904998 wrote:

I thought UHC was supposed to be reasonable.  

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How do you define "reasonable"?  And if it's defined as "on par with or cheaper than others," who told you that?

[MichaelH904998]

Just what I could find a research when I purchased.  Expected maybe 5-8%.  Getting info wasn't easy but seems like all of them are doing this.  

[TRL1111]

It's real easy to find out what other supplements cost by going to Medicare.gov and clicking on "Find a Medicare Supplement Insuance (Medigap) policy.  Enter your zip code and then age and sex and tobacco use, and then click on "view policies" for whichever type you want.  It'll give you the current premium for all the companies that offer that supplement in your zip code.

If you see one you like better and you can pass underwriting if you're in a state that allows underwriting, then switch tomorrow.  But be aware that past pricing and current pricing are no guarantee of future pricing with any supplement.  

[MichaelH904998]

LOL yes UHC does their rates in June after the opportunity to change closes.  The rate shown yesterday was my old rate.  Yes I know how to do that but it doesn't reflect what the rate will be raised too in June of each year.  

[TRL1111]

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@MichaelH904998 wrote:

UHC does their rates in June after the opportunity to change closes.  

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THE OPPORTUNITY TO CHANGE YOUR SUPPLEMENT DOES NOT CLOSE!

Sorry for shouting, but geeeeeez.  How many times do I have to say it?

[MichaelH904998]

Why do you have to yell at people?  We are learning just like you did at one time.  Be respectful please.  

[TRL1111]

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@MichaelH904998 wrote:

Why do you have to yell at people?  We are learning just like you did at one time.  Be respectful please.  

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I think being respectful would include reading people's posts who are trying to help.

I've posted I don't know how many times that there is no nationwide "open enrollment" period for people to switch supplements, and that it can be done any time during the year.  In fact, I replied TO YOU about that very thing in this very thread, on April 14 (I told you you could switch tomorrow if you can pass underwriting).  But then the next day you said, "UHC does their rates in June after the opportunity to change closes."  And in another thread you said, "What choice does one have at this time of year?"

Hence the frustration.

[MichaelH904998]

Ok message received, and I am sure you will yell at the next person.  Yellers will yell.  I hope you feel really good about yelling at people over the age of 65.  Sometimes things have to sink in.  Yelling doesn't help but apparently makes you feel good.  When you aren't respectful people won't hear the knowledge you wish to share.  

Yes I get it I can change anytime so long as I can pass underwriting. I still wonder why the Arizona rate increase was so high.  I am hearing FLA didn't have one.  Still a mystery to me.  

[TRL1111]

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@MichaelH904998 wrote:

Ok message received, and I am sure you will yell at the next person.  Yellers will yell.  I hope you feel really good about yelling at people over the age of 65.  Sometimes things have to sink in.  Yelling doesn't help

Well, apparently it does help because you say you've got it now, after I said it several times and finally in all caps.  

As for comparing Arizona to Florida, you just can't.  Insurance premiums are based on claims, and there's no reason claims in Arizona have any similarity to claims in Florida.  And if Florida didn't have an increase at all, then they're extraordinary because all supplements are taking a beating because, if nothing else, inflation is increasing the amount of the claims they pay, and premiums are always adjusted to account for claims paid out  That's how insurance works.   

Plus Florida is known for high supplement premiums, even though there is no guaranteed-issue period beyond what is required by the federal government (which can make supplements cheaper because they're never required to take anybody outside their initial enrollment period).  

I checked for a 70-year-old male in Miami, and according to AARP/UHC's website, Plan G is $316/month.  For that person in Phoenix, the premium is $190.  For exactly the same coverage.

But Florida is an issue-age state, so I'll compare the rates for a male who's turning 65 and getting his first Medicare supplement (i.e., the lowest issue age possible).  Miami is $276 and Phoenix is $171.  For exactly the same coverage; the only difference is location.

[SpringIsHereVA]

So GLAD you posted this Michael @MichaelH904998 !!! Take care, Nicole  👵

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[*** @MichaelH904998 wrote 4/16/25: Why do you have to yell at people?  We are learning just like you did at one time.  Be respectful please. ***]

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[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.

[mc85147526]

 based on the chart I can see United Health Care had the highest increase at over 12%

[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.