IMPORTANT: MEDIGAP PREMIUM LEAP

[GailL1]

 Definitely NOT just AARP/UHC Supplemental plans that are seeing these premium  increases.

 KFF Health News - 04/23/2026 - Medigap Premiums Leap, and Consumers Have Few Alternatives 

from the link [copy/paste - portions of the article - most of it actually

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From an Illinois based broker:  More than 80 of his customers who were enrolled in the same Medicare supplemental plan from the insurer Chubb got hit last August with a 45% increase.  . . . . . In my 49 years of doing biz as a broker, I’ve never seen a premium increase be effective immediately on everyone, instead of on their policy anniversary . . . . 

While 45% was an unusually big jump, Jaggi and other brokers say double-digit premium increases for Medicare supplemental, or Medigap, policies are becoming the norm.

In the supplemental market, following big increases last year, rates appear to be rising again.  In early 2026 filings with state insurance commissioners from Aetna, Blue Cross Blue Shield, Cigna, Humana, Mutual of Omaha, and UnitedHealthcare, rate increases for Plan G policies — the most commonly purchased supplement type — ranged from just over 12% to more than 26% in the first quarter, according to Nebraska-based consulting firm Telos Actuarial.

While this is a small dataset across a select number of states, it’s an indication that carriers are looking to correct their premium rates in light of upward pressure on their claims experience,” said Brett Mushett, a consulting actuary with Telos.

. . . . . Medicare makes changes to deductible and copayment rates each year, which affects supplemental plans that cover those increasing amounts.

Wallace also noted that the insurer saw higher medical service use among its members, “which further drove claims costs and ultimately impacted premiums.”

Agents and policy experts blame a range of factors for rising premiums: an increase in the use of medical services by beneficiaries; the aging of the population; increases in labor and medical costs; rules in some states governing Medigap plans; and people’s enrolling in — or getting out of — private Medicare Advantage plans.

[ the Illinois broker] said he eventually found other options for many of those 80-plus clients with the large increase, which came from an insurer that had previously been the lowest-cost option. But it wasn’t easy — and continuing increases are expected. [ ME:  Illinois does allow switching under some circumstances other than underwriting ]

Policy experts have outlined possible solutions, including for Congress to cap out-of-pocket costs for Medicare beneficiaries or subsidize the purchase of Medigap coverage.

Traditional Medicare is the only federal health insurance program without an out-of-pocket cap,” Sen. Ron Wyden (D-Ore.) wrote in an email, adding that the program “needs to be updated and strengthened to protect the Medicare guarantee for American seniors.”

But making changes to Medicare that require congressional approval is unlikely in the current legislative environment, especially because adding an out-of-pocket cap would add costs to the federal budget.

At least 16 states have what’s known as a “birthday rule,” which requires insurers once a year to allow people enrolled in a Medigap plan to change to different supplemental coverage — usually around their birthdays — without being medically underwritten. Those rules can help consumers, including those with health conditions, to switch.

An additional four states — Connecticut, Massachusetts, Maine, and New York — require insurers to offer at least one Medigap policy to all applicants either year-round or during an annual enrollment period, depending on the state. Changes are allowed no matter the person’s health.

[ME: Premiums are on average higher in these states that have allowed for NO to limited underwriting - Underwriting keeps those that are very sick from switching Medigap plans without paying a premium on their premiums or disqualifying coverage of a preexisting condition for several months - both are to even out the risk factor. This is mentioned further down in the article and in this copy paste of the article] 

Another option for those facing high Medigap costs is to leave traditional Medicare and enroll in a private-sector Medicare Advantage plan, which have out-of-pocket caps. But joining one means beneficiaries must generally rely on a set of in-network doctors and hospitals. And if they change their mind and want to go back to traditional Medicare, they have only a 12-month window in which to purchase a Medigap plan without passing health questions. After that, it can be more difficult.

“A lot of people don’t know that if they are in Medicare Advantage for a year, they can get turned down by a Medigap plan or charged really high premiums because of a preexisting condition, which for many people effectively traps them in MA

plans,”

There are some exceptions. For example, if a Medicare Advantage plan withdraws from a market or leaves the Medicare program, its enrollees can qualify for a supplemental plan without being asked health questions or charged more for having preexisting conditions.

For this year alone, about 2.6 million people lost Medicare Advantage coverage when their insurer pulled out of their markets, according to KFF, and more than a million lost coverage for 2025. Many switched to other MA plans, but “somewhere around 440,000 of those people did go to a Medicare supplement policy,”

Some Medicare experts note that anytime insurers enroll people whose health status they can’t consider — whether because of birthday rules or because their Medicare Advantage plan left the market and thus qualified them for an exemption from medical underwriting — it potentially exposes them to more health care utilization and higher costs, making them more likely to increase premiums across the board to offset the possible financial hit.

Another option mentioned by brokers for people looking to lower their costs is to consider one of the two types of Medigap plans that come with a deductible, which is currently just under $3,000 for a year. Those plans charge far lower monthly premiums than Medigap plans that pick up a much larger portion of annual amounts people must pay toward their Medicare services.

Still, “a lot of people are not comfortable with a $3,000 deductible,” . . . . 

 [ end copy / paste from the article ]

Get ready folks - this has ONLY just began - Now some states are extending wide or wider Medigap coverage to the disabled especially those with ALS and ESRD - of course, this sound humane and good but it is gonna increase premiums for most everybody depending on the plan these folks choose.  BTW, many of them are already covered under a lesser benefit plan - like Plan A - and are paying astronomical premiums for even this plan.  Now some states are gonna change this so that their premiums are not much higher than those who can get a Medigap because of age-related Medicare.

[gb20965686]

UHC Raised my rate by 41% on my anniversary of April 1, 2026.  Today I was notified of an "annual" rate increase going into effect immediately, making my new premium 58% higher after only 14 months.  When I contacted their customer service, I was told that they will increase it again next April and again next June, and continue to do so in perpetuity.
How much is UHC paying AARP to promote them?

[GailL1]

@gb20965686 

WOW - that is quite a jump; course your declining enrollment discount may be part of that jump.  

What state are you in ?  Are you pretty healthy?  Why not see if you can switch insurers or plans to save some premium funds - if you take on more of your risk, you could get a High Deductible Plan G where the premiums are between $ 50 - $ 75 a month - 

You gotta do what is best for your pocketbook.  They aren’t gonna come down. 

[TRL1111]

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@GailL1 wrote:

WOW - that is quite a jump; course your declining enrollment discount may be part of that jump.  

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But not a very big part. 

As an example, my initial discount is 39%, and stays at that until I turn 69.  At age 69, the 39% discount goes down by three percentage points (to 36%), and every year after that the adjusted discount goes down by three percentage points, until there is no discount left.

Given these numbers, the most a premium will ever go up due to the declining discount is 5%, and that happens only in the first year.  The next year, the premium will go up less than that--by 4.7%.  That trajectory will continue until the discount is exhausted.

There must be something else going on with the OP's numbers.  There's no way a premium can go up by 41% based solely on the discount going down.  

[GailL1]

@TRL1111 - I did say “part”; never said solely - given the time  we are currently in , anything that raises it might need to be considered or at least an acknowledgement.

Since most never mention their state or area where they live when coming here to complain about their Supplemental plan premiums go, I can only assume that they don’t know how their state laws on Supplemental plan affect their premiums.

Wonder if they are in Texas?  

[TRL1111]

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@GailL1 wrote:

Wonder if they are in Texas?  

I'm guessing you specified Texas because they expanded Medigap Supplement availability for people under 65 with certain medical conditions, and you frequently use that as an example of something that will make premiums go up. 

I'm in Texas and just found the notice of the annual premium change for my AARP/UHC Plan G Medigap Supplement, which happens in July.  This year, it's 24%, compared to what the premium was in July of last year.

That's pretty much what I expected.  I've kept track, and the percentage increases that occurred each July have been:

2022:  5.6%

2023:  7%

2024:  12%

2025:  15%

2026:  24%

24% is in line with my expectations given the anecdotal evidence I've seen from people across the country and with a variety of companies.

[GailL1]

Yes, I would say pretty much in line for this year anyway.  

The Texas change will only affect other plans (other than Plan A, B and D) if those who are less than 65 specifically with ESRD or ALS join those OTHER plans since the insurers can charge them up to 200% more in Plans other than Plans A , B or D where the insurers cannot charge more in premium cost due to disability.  

The law is worded kind of weird - we had a big discussion about it over on the Reddit Medicare board and one of the TX agents when the change was first passed in 2025 said the change was ONLY for those  with ESRD or ALS - not for just anybody under age 65 on Medicare.  

The up to 200% mark up in price is probably to equalize the coverage in those other plans - like underwriting might do - charge a beneficiary more because of a pre-existing condition. 

I tried checking the Tx gov website just now to see if they have reworded it but the site is down until Tuesday 05/26/2026.  I remember when I read it the 1st time - I said to myself - WOW, nothing like discrimination between disabilities.  

[TRL1111]

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@GailL1 wrote:

I tried checking the Tx gov website just now to see if they have reworded it but the site is down until Tuesday 05/26/2026.  

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The Texas legislature meets every two years, so there's been no opportunity for them to change it unless it was included in a special session, and it wasn't.  They reserve special sessions for urgent matters like passing a bathroom bill and limiting abortion medication access.

[GailL1]

I am not saying that they changed the law, I am just saying that they may have reworded it for clarity - the website is under construction that’s why it is down until Tuesday. I could not reference it to show the wording.  

The ALS Association worded it this way:

AUSTIN, TX (June 25, 2025) — The ALS Association applauds the passing of House Bill 2516 (The Chris Larkin ALS Act) into law. This marks a major victory for Texans living with ALS. Named in honor of Chris Larkin, an ALS advocate living with the disease, the legislation expands access to affordable Medicare Supplement Insurance (Medigap) for people under 65 with ALS or end-stage renal disease.

The Bill tracker said it this way:

This bill, also known as the Chris Larkin ALS Act, aims to expand Medicare supplement benefit plan eligibility for individuals under 65 years old who have end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS). The bill requires insurance entities that offer Medicare supplement plans to individuals 65 and older to provide the same coverage to eligible individuals under 65 with ESRD or ALS. These younger individuals will have a six-month enrollment period starting from their first month of Medicare Part B enrollment, during which insurers cannot deny coverage, impose medical underwriting, discriminate based on health status, impose waiting periods, or exclude pre-existing conditions. For standardized Plan A, B, and D, premiums must be the same as those for 65-and-older individuals, while premiums for other plans cannot exceed 200% of the rate for older enrollees. The bill will take effect on September 1, 2025, and provides a special enrollment window from December 1, 2025, to June 1, 2026, for individuals already enrolled in Medicare Part B due to ESRD or ALS to apply for these Medicare supplement benefit plans.

TX HB2516 / Bill Track 50 

Now doesn’ t that sound kind of weird to you - just changing it for ESRD and ALS less than 65 beneficiaries?

[TRL1111]

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@GailL1 wrote:

I am not saying that they changed the law, I am just saying that they may have reworded it for clarity - the website is under construction that’s why it is down until Tuesday. I could not reference it to show the wording.  

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The only way to reword a law is to amend it via the legislative process.  Agencies adopt administrative rules administer the laws that legislatures pass, but if a statute says only certain diseases are covered, then that's the law, so to speak, and agencies can't pass a rule that contravenes that.

I like to look at statutes instead of bills, because of the formatting.  Here's the one for this law:

law.justia.com/codes/texas/insurance-code/title-8/subtitle-i/chapter-1652/subchapter-b/section-1652-... 

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@GailL1 wrote:

Now doesn’ t that sound kind of weird to you - just changing it for ESRD and ALS less than 65 beneficiaries?

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Given that it's named after a guy with ALS, no.  And I see specific mentions of ESRD all over Medicare.  And blind people get special treatment on their 1040 tax returns.

[RN362636]

Basically, the entire system is broken. Healthcare costs are too high; insurance companies are all about profit for stock holders; primary benefit managers are mostly owned by the insurance companies; bait and switch tactics to get people to believe that Advantage plans are great with freebies then slowly take them away....an entire book could probably be written.

[FrBobWags]

Profits?  No.  Predatory Capitalism.  Their earnings for first quarter of this year are in excess of 6 billion dollars.   This company and others like them are  TAXING us without "represenation."   They are truly the poster children for why we need to "fire them" and make the decades long-overdue move to National Health/ Medicare for All.     The present system is a disgrace and needs to go.    Yes, it willl result in our paying "higher taxes"    So be it.  We are already being "taxed to death" by companies we did not elect and cannot vote out of office  who are also robbing the existing Medicare system of billions of dollars through their "Medicare (dis)Advantage private insurance companies who spend billions on misleading advertisements and billion dollar dollar paychecks to CEOs.   When will Americans wake up and stop voting against their own best interests?