My AARP Medicare Supplement went up 32% last month!

[CindyM710519]

 I am 68 and have had Medicare since I was 65.  Today I got a notice that my AARP United Health Care Supplement premium went up by $58 per month which is a 32% increase.  The reason cited was "multiple adjustments to my account".  What does that mean and are others experiencing a 32% increase from United Health Care?

Thanks,

Cindy

[CBtoo]

One thing to be aware of is your AARP UHC supplement plans raise their prices twice a year. On your anniversary month of the month when you signed up the price goes up because your discount goes down (so if you live long enough that eventually goes away). Then once a year, on June 1, everyone's rate goes up based on health care costs, inflation, etc. I suppose if your anniversary date is also June  you get a double hit but then you'd only have one increase a year.

[GailL1]

@CindyM710519 

Sounds like you have several things going on  -

1.  You are right in line for the reduction in your enrollment discount % - read your contract - it should show something like the below.

2.  Medical inflation is hitting ALL plans rather hard this year - not just Medigap plan but Medicare, Medicare Advantage plan , employer coverage, ACA plans - and even though Medigap coverage is NOT health insurance, it is based on the cost of Medicare coverage - and that is one thing the boomers know how to do - spend their Medicare.

3.  For a Medigap plan, a lot of the cost is based on the state where you live and the state laws that could be exposing the insurer to more risk - give you state and I can let you know if that is also part of your increase. 

Sorry - 2026 is gonna be a tough year for healthcare cost - including medication - better shop your Medicare Part D plan when it arrives to see if it is still the best one for your needs. 

[CindyM710519]

 Thanks.  I assume part of it is that I moved to Florida from Arizona.  Maybe Medigap is more expensive in Florida?  For Medigap Part D I was forced to switch because of my move into another state.  I ended up getting Wellcare which is $0 per month rather than Cigna which was $14 per month - so I actually saved a little there.

[TRL1111]

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@CindyM710519 wrote:

I assume part of it is that I moved to Florida from Arizona.  

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It would be nice if you would have mentioned that instead of leaving people who want to help guessing and speculating.  

[CindyM710519]

Sorry, did not realize the state was an issue until GailL1 nicely mentioned it.  Besides, 32% seems excessive so I wouldn't think it was all due to a state change

[GailL1]

@CindyM710519 wrote . . . Besides, 32% seems excessive so I wouldn't think it was all due to a state change

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Part of it is probably due to your UHC Medigap Enrollment Discount going down - I posted the UHC page on this as an image.  You begin to be affected by it at age 68 -

The rest of it is because you moved to Florida - specifically because of this clause that I have copied and pasted below (from the FL Dept of Finance) which I posted about to you yesterday.  From the FL Medigap Dept of Finance -

https://myfloridacfo.com/division/consumers/understanding-insurance/medicare-supplement-insurance-ov... 

copy/paste:

All Florida Medicare Supplement policies must be sold on an “issue age basis.” This means that an individual's premium will not increase due to age as they get older. For example, if Mary purchased a Medicare Supplement policy when she turned 65 years old, she will always have the rate of a 65 year old. However, if Mary switches to a new insurer she will rated based on her age at the time of the new application

end copy/paste

So they rated you at the age that you reported your move to FL - 

- this maybe a hefty increase - but you can look forward to issue age basis here on out.

The state where a beneficiary live has a huge impact on their Medigap plan because many of the laws regulating this type of financial protection insurance are made at the state level.

Medigap or Medicare Supplemental Ins. is NOT health insurance, it is financial protection insurance to protect against a catastrophic medical event to which Medicare only pays a portion of the overall bill - the rest is up to the beneficiary.  A Medigap plan does NOT make ANY healthcare decisions -it only pays what Medicare does not pay for MEDICARE APPROVED charges up to the amount specified by the Medigap plan a beneficiary has chosen. 

I hope you understand it better now - spread the word - it will help other seniors to understand better.  

[GailL1]

@TRL1111 

I don’t think a lot of beneficiaries understand the control factors that a state has over Medigap plans - not just premium but also the laws a state can pass to open up special enrollment periods to change their Medigap plans and in a few states the ability to pick up a Medigap plan long after on has been on Medicare.

Folks here don’t read other threads where a few of us try to give info thru the years.  In fact, I don’t even think some of them read their policy contracts.  or the Medicare “Medicare and You” booklet.  

So with all these states making Medigap changes, I wonder who it is that is forcing this effort - beneficiaries?????  

[GailL1]

@CindyM710519 

Just make sure you review your Part D coverage for 2026 because there are lots of changes being made and the plan you have now maybe much different than what it looks like in 2025 - 

The AEP (annual enrollment period) for stand alone Part D plans begins on 10/15 and goes thru 12/07 for 2026 plan year.  You should begin to get communications from your current policy stating the changes that may be coming in that plan for 2026 - the ANOC (the annual notification of change).  Just make sure that you pick the plan that best meets your needs - medication-wise and financial. 

As to your Medigap plan, every state is somewhat different on the things they control - premiums of one.  Here is the most current rules for Florida Medigap plans from the Florida Dept of Finance 

FLORIDA - Medicare Supplement Insurance Overview 

specifically look at the “Premium Issues” heading which is probably affecting your premiums due to your move from AZ to FL.

[GlennandDianna]

We just received our 2026 UHC Part D pricing and it is increasing $50.00 per month for each of us from $114 to $164. Before we even see the price of our UHC supplement plans, we are up $1,200 per year. 

[GailL1]

I am sure you mean your 2026 UHC Part D - make sure you look to make sure this plan is still the best one for you and your spouse - check formulary, check tier, check the way your part of the cost is calculated because some plans are changing from copays to a % cost as coinsurance and if it is an expensive drug that could be a lot.  A lot more than just premiums need to be reviewed especially this year - lots of changes due to the fact that insurers have to pay more of the cost of drugs.   The OOP maximum also went up to $ 2100, up from $ 2000 in 2025.  Part D deductibles for basic plans went from $ 590 (2025) to $ 615 in 2026.

[GlennandDianna]

Yes sorry, 2026. So by changing the law and limiting the amount we pay for drugs, our lawmakers are just moving the money we pay from the copay to the core insurance cost. 

[CBtoo]

You said, "So by changing the law and limiting the amount we pay for drugs, our lawmakers are just moving the money we pay from the copay to the core insurance cost. "

the other thing that are happening besides premiums going up is that many drugs in the upper tiers are changing from a flat fee to a percent of the cost of the drug. That will make the drug more expensive.

The problem is that when the 10% of the people who went through the donut hole and out the other side now have an out of pocket limit that money has to come from somewhere. That somewhere would be those of us who never even were close to the donut hole in the past. Many of us who didn't have expensive drug costs are now paying more because of the change.

In 2025, using the cheapest plan (drugs plus premiums) what I am spending on the D premium and the identical drugs (from 2024) went up nearly $600. Looking at 2026 I will see a jump again. 

Everyone with medicare D needs to be SURE to go to medicare.gov, put in their drugs and look at the 2026 plans and their prices.

[GailL1]

@CBtoo 

Exactly right - insurance is a share and share alike program.  You pay for them and they pay for you.  That’s insurance.  

then the price goes up when government money gets involved because then there is another payer with deeper pockets.

I have often wondered what prices for drugs and health care would be IF most people were just paying out of pocket - and either it comes down to their pay ability or the provider or manufacturer doesn’t make the sale.

Probably too much of a reach - since we can’t even seen to do it with food prices - just don’t buy it at the higher price and then I wonder what they would do to sell it?  We aren’t that organized plus government is there still to pick up the slack in food programs so the buying would still go on , . . and on . . . and on.

[CBtoo]

The law states that with exception of the new program medicare can't negotiate drug prices. As a result, if they so desired, the pharmaceutical industry can charge seniors whatever they want to make up for negotiated drug rates for work place insurance, ACA insurance, vet administration case, Medicaid... And, in fact, the cost of meds for seniors with the exception of the drugs on the short list with the new program are higher than other insurance programs for non medicare.

If people had to pay out of pocket for everything there'd be more deaths amongst the poorer people. We are the only first world country that views health care as a private and not a right. We have, on average, a shorter lifespan than most first world nations. 

[GailL1]

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@GlennandDianna wrote:

Yes sorry, 2026. So by changing the law and limiting the amount we pay for drugs, our lawmakers are just moving the money we pay from the copay to the core insurance cost. 

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Lawmakers make the laws that supposedly help us(??) but when they place more cost on the insurers /manufacturers that are supplying the plans and the drugs, then our cost do go up - but based on the premises that insurance is a share and share alike program - you pay for others and they pay for you.  

How can it be any other way?  Government has no real earnings that they can bring to the table.  Government makes the rules and the laws but do not have the ability to dictate or regulate that those supplying the benefit don’t pass the cost along to the end user.

Only in programs that have a dedicated income source (like Social Security) into a Trust Fund can Government control the income and the outgo and we see how that has worked out.