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- UHC Medigap rate increase history
UHC Medigap rate increase history
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UHC Medigap rate increase history
On average how much has your medigap policy increased each year? I am planning to use Plan G, but trying to decide who has lower increases overall. The UHC community plan or an attained age plan such as Aetna or Cigna. It looks like with UHC I'll get a 3% increase each year because of the initial enrollment discount plus an inflation or any type of increase each year?
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It has become expensive.
In 2023 there was no financial limit to your liability once you got to the catastrophic phase, you would continually pay a portion of the drug costs without any upper limit.
In 2024 an $8,000 cap was placed on your liability in the catastrophic phase after which your liability would be zero for the rest of the year.
In 2025 the $8,000 cap is reduced to $2,000 after which you pay zero for the rest of the year. In addition the doughnut hole was eliminated for 2025.
The "intention" of the legislation changes were to make drugs cheaper for subscribers by making insurers responsible for a larger portion of the total cost. Predictably the insurers just pass on the increased financial liability through increased premiums.
If you are someone who needs very expensive medications this is great news. However if you rarely get out of the initial phase then you are paying for others who need their expensive medications covered. The legislation simply spread the cost of medications more evenly over all subscribers which will impact more subscribers negatively vs the subscribers it helps. It is a poorly thought through piece of legislation.
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@JPWhiteHome With regard to your last paragraph, how do you think any insurance works? Regardless if RX drug, fire coverage (homeowners), auto, life, disability, etc.how do you address and cover risk? Since we are on the Medicare & Insurance forum,I will provide an example;namely, Disability Insurance provided by the Social Security Program. When we pay FICA taxes, we are paying for Old Age Survivor Income (OASI) and Disability Insurance (DI). Although the percentages may vary from year to year, the 6.2% FICA is allocated approximately 5.3% to the OASI and about .9% to DI. If you are single, you are contributing to married folks. Also, if you do not become disabled, you are contributing to disabled folks. https://www.ssa.gov/news/press/factsheets/HowAreSocialSecurity.htm So, folks may be healthy at the present or may take generic meds that are reasonably priced. They may view a Part D premium increase as a negative not thinking or knowing that there is a probably factored in for all folks that someday it may be them that has a catastrophic illness. One never knows what the future may bring. This is why one buys insurance to transfer that risk rather than self insure.
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Sorry for the (2) replies to your same post but since they are different in nature, I though it would be simpler to follow the different nature of my replies.
I think both you and @JPWhiteHome are basically saying the same thing. As long as one is a member of the insured group, when the insurance program gives more, it cost more, even if the beneficiary is not a direct user of an added benefit. It is, IMO, a cost shift - from the government thru the insurance sponsoring organization and in this instance, somewhat thru the drug manufacturer.
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You miss my point.
The legislators thought they were sticking it to the insurance companies and that would result in lower consumer costs overall. It's a popular thing to do with the public, people hate insurance. However that can't work as you correctly stated. In some states insurers are leaving because legislation prevents them increasing premiums to match losses, leaving homeowners with little choice but to self insure.
Legislators have focused on the insurance companies which is silly because they just pass on costs. The true problem is drug companies who keep increasing medication prices. Insurance does't determine the final cost the manufacturers do.
My guess is pharma has a better lobby than insurance companies.
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I don’t know who, if anybody, had the better lobbying group - and I don’t know how , in the end, it is all gonna play out with beneficiaries - speaking mostly of those who are not gonna get a direct benefit.
I also don’t think this is just because of the Part D rule changes - especially since most plans nowadays days are MAPD - so it isn’t just gonna affect free-standing Part D plans.
The premium raising cap was applied just so there would not be an all out uprising - especially in an election year. Who knows how this is gonna affect the overall program of Medicare in the long term.
I don’t think that insurers have to do cost analysis based on their different exposures to Medicare programs - or do they?
I read yesterday that CIGNA has already begun the process of pulling out of MAPD plans in certain counties in certain (several) states.
It should all begin to hit the fan, so to speak, next week, when more ANOC are began to be scrutinized by their beneficiaries - I have tried to do my part in telling beneficiaries that they have to review these carefully for CY2025 or suffer the consequences. Thus far, here, we have seen some outcry over premium increases but not much on the actual changes to the meat of the various policies. But maybe premiums are all that are being looked at 🤯
I’m not privy to any of the new CY 2025 plans yet - so that fan may not be fully hit until we see them beginning about the beginning of October.
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My understanding is that CIGNA is selling their entire Medicare business Traditional and advantage and focusing on commercial only. The changes you are seeing maybe in CIGNA's name but probably in conjunction with the new owner of the plans.
Several insurers are pulling out of advantage in certain geographic areas, it's not just a CIGNA thing. I believe the rationale is that certain locations are unprofitable. last I heard UHC are the only major insurer to NOT announce such advantage pullouts, though I suppose it may still happen.
Yes CMS has given an extra money to suppress rate increases. It's not stated as due to this being election year, and I don't believe they will ever admit to the same, but none of us were born yesterday.
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This is where I read about CIGNA changes and it does describe the other CIGNA Medicare plan changes which were announced back in Jan. 2024. I believe Health Care Service Corp (HCSC) is a Blue Cross/Blue Shield carrier.
FierceHealthCare.com - 09/20/2024- Cigna trims Medicare Advantage plans in eight states
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@Tonster521 wrote:
If you are single, you are contributing to married folks.
++++++++++++++++++++++
@Tonster521 - While I agree with your explanation of insurance for the most part - that it is a “what if” plan and for the Medicare and Social Security programs we pay into it as a pool for those vested into the programs.
However, in speaking about the Social Security (and Medicare) program of Disability - I think the program has a problem that needs to be part of the discussion on how to fix the program(s) and their shortfalls.
Many of the legislated rules on the Social Security programs - including Medicare - were based on a time when societal norms were different. So for the “Stay-At-Home-Spouse”. we modified some of the program rules to help cover them in the event of a tragedy. We added the benefits but we failed to add the added contributions which should be part of the equation.
Also, we didn’t add the benefit coverage for the Stay-At-Home-Spouse to the Social Security Disability program. So they are not covered for this important coverage - not by the rules and not by the contributions YET they have value in what they do and a disability for that Stay-At-Home-Spouse is just as important as them getting Medicare or a Social Security Retirement or Survivors benefit.
Insurance that is directed to a person’s wellbeing (as differing from an object) in case of a “what if” scenario is based on the (1) person : (1) benefit premise. We need to follow that premise into these public programs and include all of these programs.
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I don't have enough information about the legislation to know if it is well designed or not and, of course, it is the product of what passes for compromise today when you have one party that doesn't want to provide this type of benefit to begin with.
Picking a plan is highly subjective and dependent on the meds you take, their cost and your ability to pay.
I currently have a plan which has a zero dollar premium. I use two meds that would cost around $600 per month each and a couple that cost next to nothing. In fact my wife and several friends also use this plan with Wellcare.
Using Medicare's comparison tool with the meds I use this plan cost me the least per year out of pocket including the cost of the meds plus premium. It will probably not be the case this coming year. I haven't looked yet.
Over the years I've paid as much as $43 per month but generally well below that. So, I'm not sure what I'm missing but I'm not seeing these seemingly "outrageous" costs and without knowing the meds involved and premium there is no way to comment intelligently.
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But look at the new stuff in the 2025 Part D Prescription Drug plans you are getting for your money. For the price you are paying you have a plan that has more benefits- CMS calls them an enhanced plan.
Enhanced plans charge higher monthly premiums than basic plans but typically offer a wider range of benefits. For instance, these plans may not have a deductible, may provide extra coverage , and may have a broader formulary. Some of these plans may also cover excluded drugs.
Lots of changes to the Part D Prescription Drug Plans for 2025 plans. Review them and Shop for your best benefit.
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Yep, I've looked and compared plans. My AARP UHC plan serves me a higher premium for 2025 but I get no other benefit than what I am currently receiving.. Plan has tripled in price from 2023 to 2025. Drug costs haven't tripled in price during that time.
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An enhanced plan gives you better benefits than the basic plan. I listed some of them in one of my post to you.
For 2024 and 2025 plans the cost of the premiums of all the Part D plans whether basic, standard or enhanced have increased due to all the legislative changes and the rule changes by our government.
You get more benefits; you pay more and this “more” isn’t something that any of us can decline.
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With Soooo many changes to 2025 Part D Prescription Drug Plans, it is very wise that EVERYBODY with one checks their plans in detail and make sure to pick the one that best serves their needs.
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My AARP plan N increased as did my husbands plan G for 2025. In fact we got 3 increases.
1 increase for my birthhday
1 increase for my husbands birthday
3. One increase overall which was between 10- 12%.
Its ridiculous and there are no freebies like Advantage plans give you!
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mine has too. Jusr got a notice that my current premium of $244. Is goin up to $275. In July. That is $31.00 increase a month. Then in October 2024 goss up again . They use the excuse of high medical care costs. That is baloney. All insurances have contracted rates nowadays. And as a Secondary to Medicare they are only paying a small co-insurance amout . I worked in the Medical claims field for 20+ years, these rate increases are unwarranted.
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The same thing here - I have an increase on June 1 and then again on September 1. I was told it was because of medical costs increasing and that the state of Virginia where I live authorized the June 1 increase. I told the customer service rep I would be shopping for my same supplemental plan through another carrier. I'm disgusted.
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This site may give you some insights as to approved Medigap policy premium increase:
https://lp.newhorizonsmktg.com/medicare-supplement-rate-changes
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