AARP UHC Supplement plan N rate increase for 2024

[BorisZ486903]

We received the letter from UnitedHealthcare. It is announced that the rate for our AARP UHC Supplemental Insurance plan N will increase 12.4% for the year 2024. The inflation rate in June was 3%, in July 2023 3.3%. How can the medical insurance get the rate increase 4 times higher than  the inflation rate?  Who profits from such a business decision?  Who cares about retirees with a fixed income?

What does AARP do to protect American retired persons from greedy insurers? Or the AARP activity is advertisement only?   

[LauraA422032]

My UHC Medigap Plan G premium increased by 8% in 2024. I just received a letter from UHC that they are increasing my premium by another 15% effective 4/1/24. Is it legal for them to do this 4 months into the year? This is bait and switch. I've notified AARP and CMS. I will not sign up for UHC next year.

[DavidB82]

It's not a bait and switch, it's very very clear in the terms of the application you signed for a supplement with UHC. You will ALWAYS have 2 rate increases each year, one for the adjusting rate which is June 1st and one for your age increase, with the only exception for that being if you are over 81 you will not have an age increase (BCBS increases until age 100), or if you are between 65 and 68, in which you do not have an age increase. Every single company has these rate increases, no matter what supplement carrier you have. And if you are past your 6 months of your Part B start date, you will not be able to switch to another supplement unless you pass underwriting questions. Good luck, but no other carrier is going to offer you a cheaper rate, it's simple math.

[js51344645]

What a rude response to a legitimate concern for many retirees. My rate just increased again to $195.62 a month for someone who is rarely sees a doctor. Perhaps several of us should get together to discuss the problem and possibly see if the insurance companies have any room for cuts before passing on their management bonuses to us. 

[GailL1]

@DavidB82 wrote

And if you are past your 6 months of your Part B start date, you will not be able to switch to another supplement unless you pass underwriting questions.

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UNLESS you reside in one of those few states that have an expanded guaranteed issue annual date to switch your MediGAP policy - like in CA where they have the “birthday rule” or New York - there are others.

But if you live in one of these states, your MediGAP premiums are already higher than the rest of the country because they give this special annual change condition. (NOT enrollment; just change from one plan to another - usually to one that is the same or with lower benefits )

[JPWhiteHome]

 I believe the increase due to inflation aka "Product Increase" can occur mid year. My notice shows my rates staying steady for 2024 but going up on Jan 1st 2025. Not sure if this because they time the update with the calendar year or because that's the anniversary of my taking out the plan. I suspect the latter.

 I believe all increases are approved by the state you are in. UHC have to submit the need for an increase.

 It's probably worth working with your agent to understand if the 15% increase is just the product increase or if they have added an increase that is age related as well as a product update.

 WHich state are you in? I am in Tennessee.

[JPWhiteHome]

 I just received notification of 2025 plan N rates. It's going up 10% in Tennessee. It's still one of the cheapest N plans in our area but not quite the deal it was.

[GailL1]

Welcome to the Board, @JPWhiteHome - you are a breath of fresh air on the Medicare Board.

[DavidL539770]

I  don't understand how AARP can even promote UHC!!  I have never had such horrible insurance.

All claims denied, even after appealing.  Book says covered but file claim & they won't pay it.  I even called before I had dental work & they told me would be covered but like all others billk got denied

What a rip off!!  I have sent complaint to federal governmane tfor even having this company as an option!!  If you signed up for this opolicy BEWARE

[JPWhiteHome]

 The advantage of a Supplement vs Advantage is that UHC simply pay their 20% portion after Medicare adjudicate the claim. With Advantage its 100% up to UHC to adjudicate the claim.

 I suggest you talk with your agent and see if switching to a Supplement plan would be advantageous for you or not. It is more expensive in terms of premium paid, but there is no claim anxiety when you use the insurance. Essentially you get what you pay for. With a supplement you will need a separate drug and dental/insurance plan.

[AmyL104559]

I hope you now have an agent that will explain things to you and make sure you understand the plan before signing up.

[MaureenO68871]

can I ask how old you are?  A salesperson for one of the medicare advisor companies told me that the rates for AARP increases go up a lot starting at age 70

[JPWhiteHome]

  The reason we chose AARP Plan N is that it's community rated in our state (Tennessee). Which means the cost cannot increase due to age after age 82. At 65 you get a 45% discount and the discounts from 65-82 are clearly disclosed in the UHC documentation. Other insurance companies in our area price by attained age so it will go up every single year due to your age.

 You can check the price by age for UHC simply by "shopping" for a plan and put in ages like 65, 70. 75, 80, 85, 90. I documented the prices by age for 4 companies for a variety of ages and ran the numbers. The AARP plan was the most cost effective up to age 95. I stopped analyzing beyond 95 but with no age increases after 82 then the AARP plan will no doubt fair favourably.

[GailL1]

Sometimes it is best to just learned about it yourself or verify info that gets spread around 

Medicare.gov - Medigap Cost

Be sure to read the embedded link labeled How do insurance companies set prices for Medigap policies?

It will open up another window and describe the (3) ways that policies can be rated:  (1). Community Rated. (2). Attained Age. and (3) Issue Age

I have read that many, maybe most, of UHC Medigap plans are Community Rated but many, maybe most, do have some kind of declining discount when 1st issued.  That all depends on the State/Insurer contract .

[DavidA186743]

Do you think the inflation rate in 2 quarters of the prior year is the only thing that impacts increases?

- The value of the dollar,

- The increased salaries necessary to retain employees,

- The overhead increases that are disproportianate to inflation,

- The exorbitant price impact new medications and procedures have on healthcare premiums

- And, yes, greed...

Are just some of what impact the rate increase above and beyond inflation.

Perhaps, instead, you should ask who cares more about retirees with a fixed income (at an average net worth over $1 million dollars) than children who are trafficked as sex slaves or veterans who fought, killed and were mamed for their country only to come back to homelessness or despair that leads to suicide?  While most people would care more about the children and our heros, they do not have a lobby like AARP pushing for retiree health insurance to be a fraction of what non-retirees pay.  Personally, I would gladly increase the amount retirees pay for Medicare supplements if it directly improved the lives of children who were raped or heros who feel helpless, let alone decrease the preposterous premiums charged non-retirees, but what do I know?

AARP does everythign they can to influence American retired persons to enroll in the plans underwritten by the greedy insurers they're in bed with.  Like any **bleep**, they will get in whatever bed nets them the highest profit.  Insurers are made up of people.  People are greedy.  AARP is a not for profit organization made up of similarly greedy people who cannot be shareholders but can increase their salaries as the organization's gross revenue increases in proportion to expenses. 

To answer whether AARP activity is for advertisement purposes only, consider whatever activity that takes place outside the visible range of a camera or audible range of a microphone.  Like so many well-founded, idealistic organizations with sincere roots, AARP has evolved into a lobby that wields its hopelessly liberal influence representative of the values of the hippies who made it what it is.   

[TomB46856]

I don't understand how my AARP prescription plan can go from $28.20 a month to $54.20 a month in 2024.  Nearly 100% increase. 

[GailL1]

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@TomB46856 wrote:

I don't understand how my AARP prescription plan can go from $28.20 a month to $54.20 a month in 2024.  Nearly 100% increase. 

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GET MORE; PAY MORE

CNBC 11/21/2023 - Retirees face significantly higher Medicare Part D prescription drug premiums in 2...

[JPWhiteHome]

 Correct. The IRA did expand benefits for Plan D recipients. But as always there is no such thing as a free lunch. We are fortunate that this change came just as we reached retirement age. My wife's medications are extraordinarily expensive so she will be in catastrophic coverage after the first month each year. We will therefore benefit massively thanks to the expanded benefits. Of course we all pay more now to cover the cost of these expanded benefits.

[GailL1]

@TomB46856 

Your comments here are off the actual topic but I will try to give you some clarity.

There are many changes to the Medicare Prescription Drug Program in 2024 as a result of the recently passed Inflation Reduction Act.  Many of these changes will actually occur in 2025 and later but since it also involves a cap on how high premiums can rise beginning in 2025, without a financial penalty to the insurer, then they are taking this 2024 time period to get ready, so to speak.

Your prior premium was very low - but that was probably because your picked plan lacked some bells and whistles to keep your premiums low - this maybe impossible now since some of these bells and whistles are legislated to be included in the plans.  

Also - all these things that the IRA added have to be included in this INSURANCE coverage even though they don’t directly affect you or me.  

CMS.gov Medicare and the Inflation Reduction Act

The average premium price of Part D coverage actually went down a bit in 2024 per CMS. 

CMS.gov News Release 07/31/2023 - 2024 Projected Part D Premiums and Bid Info

The Centers for Medicare & Medicaid Services (CMS) today announced that the average total monthly premium for Medicare Part D coverage is projected to be approximately $55.50 in 2024. This expected amount is a decrease of 1.8% from $56.49 in 2023. Stable premiums for Medicare prescription drug coverage in 2024 are supported by improvements to the Part D program in the Inflation Reduction Act that allow people with Medicare to benefit from reduced costs.

Now what you need to do is make sure this is the plan that you want / need - I am just guessing but it probably is different than what you had last year in actual coverage - like deductible, tier prices and copays - 

You can take this open enrollment period of time to look around to see if there is another plan that might fill your needs and with perhaps a cheaper premium.

SORRY - but government knows best - yea, right 😉

[d946977r]

And probably not. Same 95% increase as you with no observed change in my plan or income. I have an inflation increase. The Medicare rate increases due to yearly reported income shows a 13 percent increase in the first step and aarp told me that yearly income was the trigger for my 95% increase.

[GailL1]

Some of your % of increase could be that your AARP UHC discount is decreasing.

Then there is the way that MediGAP policies are rated.  

Medicare.gov - Cost of MediGAP policies

Then there is inflation - not just current but since your last premiums were set - so that would cover the high inflation that we had in 2022 as well as 2023.

Medical cost inflation is higher than regular inflation especially for Medicare beneficiaries - purely because of the group being covered   

But MediGAP coverage is not really a medical policy - it is GAP insurance - more of a financial protection product for those who have a Medigap policy.  It only protects the beneficiary from what Traditional Medicare does not cover.

MediGAP policies are gonna continue to go up - anyway they are rated because it is based on the useage.  MediGAP policies are not subsidized at all by the Government (Medicare).  Having one and to continue to have it by paying premiums is a choice that a beneficiary makes. The insurer can NEVER cancel a beneficiary except for not paying their premiums (or lying on their application), no matter how much or how little theynmay use it. 

Within a pool of beneficiaries with the same MediGAP plan, there maybe many who have low medical cost where the MediGAP policy isn’t paying out much on them but then there maybe others who have major medical conditions and the MediGAP policy is paying out a WHOLE LOT.  

Since this pool is pretty much a captive audience and most stay with the same policy especially in those states that don”t legislate special guarantee issue conditions (which is most), then this pool keep getting older together - and with age come more medical cost.  

Wouldn’t it be better if Medicare just put a total annual out of pocket cost in its configuration, so that there would be less need for MediGAP coverage. Then the beneficiary could just pay some out of pocket until they reached this annual limit then start over the next year.  Possibly an annual out of pocket similar to those in a MA plan - a few thousand at least.  

NO WONDER many of the new Medicare beneficiary are picking a Medicare Advantage plan (PPO if they are smart) over Traditional Medicare with a MediGAP policy.

[katydidTX]

My Aetna Medigap policy is going up 13.2% for 2024. I agree with everything you've said Gail, but even with the increased cost I will not change to an Advantage plan. I can choose any doctor I wish and don't have to worry about claims being denied. That's the important part to me. I know that if a procedure or surgery is Medicare approved then Aetna has to pick up the other 20% of the cost. That means no worry about paying for an unexpected medical cost.

I wish we had a better system, but until the U.S. joins other advanced nations with universal medical coverage, we have to choose from the options we have available. Medicare Advantage plans only work for those who are healthy. People don't realize they are NOT original Medicare and when they find out many can't switch back. They really should not be able to use the word "Medicare" in their sales pitch. It's deceptive advertising.

[cgarren]

What have been the yearly increases for your Aetna plan?  I am considering a Plan N with them.

[GailL1]

Medicare Advantage is legally a part of Medicare - Part C.

People have choices - choices based on their need as well as their pocketbook.

There is a reason why the MediGAP rules are written the way they are, i.e. available without underwriting only under certain conditions that give a person guaranteed issue right after the IEP.  and yes, people should know how they work.  

We could change Medicare but it would cost us all a whole lot more money - at least the ones that actually pay.

Things like (traditional program)

Why does Medicare not set an annual OOP limit for beneficiaries based on their part of the cost?

Why does Medicare not utilize many of the cost containment methods that are used in other countries with a universal healthcare plan?  Simple things like having to have a referral to see a specialist - or having a primary care doc as a gatekeeper and info clearinghouse place. 

I could go on - and I am sure you could add some too.

We just need to make sure that the Part A Trust Fund stays stable - it needs work and we hopefully need to make sure that Part B premiums also stay stable - 

Part B premiums are suspect because of the new Alzheimer’s treatment - guess we will know real soon how high they will go in 2024.

I’m a bit disjointed mentally today - so sorry if I am ranting on in too many directions.

[KatherineS963126]

Legal or not, it is not Medicare. And shame on AARP for associating itself with these plans.

[JPWhiteHome]

 While Advantage plans have many drawbacks, such as pre-approvals and limited networks they are much cheaper. 

I commend AARP for sponsoring all types of medical retirement plans. For some folks Advantage is all they can afford and Advantage is better than nothing.

 AARP are active in lobbying to make Advantage plans better for all retirees by restricting the overuse of pre-approvals which can both delay or restrict medical care at a time you need it most. I am fortunate I can afford a supplement plan and I am eternally grateful for that.

 We have to work within the system we have today and try and influence improvements to the system for tomorrow.

 We have to face the prospect of Medicare going 100% to advantage plans. Politicians are keen to rein in costs and get themselves out of providing medical care to seniors. It's wrong, but it might happen. Lets lobby for better advantage plans because we may all one day have to subscribe to one if traditional Medicare is wound down. I hope not and will appreciate what I have while I have it.