Contributor ⭐⭐

United Health Raising Rates Mid Year

Forum|Forum|1 year ago
May 2, 2025
39 replies
14335 views

How is United Healthcare allowed to raise their rates mid year? People budget on the number they're given when deciding on plans. They should not be allowed to raise mid year. How does AARP allow that to go through and not negotiate for it's members?

GailL1

Community Champion ⭐⭐⭐

Most all Medigap insurers are raising their rates in 2025 because of the increase in their cost of coverage - the number and amount of claims - and then for some, added risk, when state law allows people to pick up or change plans without underwriting.

Most of them raise their rates in the summer but with a UHC Medigap you may actually get (2) raises if you have a declining premium discount plan which goes up, I believe, on your anniversary date with the plan.

AARP has no authority over UHC Medigap premium rates - like any other insurer ace company, the premiums are based on the coverage, the use, the rating method, and state law.

Read your contract / EOB

IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna

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glow141

Contributor ⭐

Except during open enrollment (and California "birthday rule") if you change medigap plans they can evaluate you based on your medical history and refuse your application. AARP needs to change their agreement with UHC. Apparently we get a "discount" upon initial enrollemnt which DECREASES 3% each year for being a loyal customer. This in essence a 3% increase on every anniversary date. Furthermore, UHC sets rates in Califonria from June to May. So during open enrollemnt you have no idea what the future rate will be so it is impossible to compare plans.
I understand the need to cover expenses, but I believe up front pricing is needed and not mid-year surprises.

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TRL1111

Community Champion ⭐

@glow141 wrote:
Except during open enrollment (and California "birthday rule") if you change medigap plans they can evaluate you based on your medical history and refuse your application.

There is no nationwide open enrollment period for supplements. Everybody can get a supplement without medical underwriting when they're first eligible for Medicare, but after that, it depends on what state someone is in. In a few states, there are guaranteed issue periods (like California's birthday rule or New York's year-round guaranteed-issue period, among others) during which a person can change Medigap supplements, but in a majority of states, there is no general guaranteed- issue period or "open enrollment" period that allows anyone to switch supplements without undergoing medical underwriting.

If you're thinking of the "open enrollment" period at the end of every year, it has nothing to do with supplements.

@glow141 wrote:
Apparently we get a "discount" upon initial enrollemnt which DECREASES 3% each year for being a loyal customer. This in essence a 3% increase on every anniversary date.

Actually, no it's not. A 3% decrease in a discount is not equal to a 3% increase in the premium on which the discount is applied. (And for the record, the discount is decreased by 3 percentage points, not 3%--they're not the same thing.)

Basically, the increase due to the declining discount will start at 5% and will go down until a person reaches the age where the discount zeroes out (probably around age 81), and during that time the increase due to the declining discount will never be below 3%.

I posted about this a couple of months ago, showing how the math works:

community.aarp.org/t5/Medicare-Insurance/Declining-discount-of-3-on-supplements-actually-equals-5/m-p/2611018

SummerOnTheWay1

Community Champion ⭐⭐⭐

📎 Lorraine @LorraineC792260 , you are so right about our budgets. And add "fixed" income. Take care, Nicole 👵

➡️[*** Lorraine wrote on Friday 5/2/25: How is United Healthcare allowed to raise their rates mid year? People budget on the number they're given when deciding on plans. They should not be allowed to raise mid year. How does AARP allow that to go through and not negotiate for it's members? ***]

T

TRL1111

Community Champion ⭐

@SummerOnTheWay1 wrote:
you are so right about our budgets. And add "fixed" income.

Fixed income isn't necessarily low income. A retiree with a pension or an annuity that pays $200,000 a year has a fixed income--but it's not a low income. A retiree whose retirement is funded by withdrawals from a 401k or IRA doesn't have a fixed income--and whether he's low income or high income would depend on the amount of the 401k or IRA he's withdrawing from.

SummerOnTheWay1

Community Champion ⭐⭐⭐

📎@TRL1111 , my comment to Lorraine @LorraineC792260 had ZERO to do with the "label" of LOW INCOME. Our discussion was about increasing rates mid year./lol 🤣😂

➡️[*** YOU SAID: Fixed income isn't necessarily low income. A retiree with a pension or an annuity that pays $200,000 a year has a fixed income--but it's not a low income. A retiree whose retirement is funded by withdrawals from a 401k or IRA doesn't have a fixed income--and whether he's low income or high income would depend on the amount of the 401k or IRA he's withdrawing from.

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DanielG635143

Contributor ⭐

Egregious Rate Hikes announced by AARP-UnitedHealthcare 2025 Premiums for Supplemental Plans

I subscribe to Plan F and have received two notices of monthly rate increases:

(1) For the eleven months prior to April/2025, my monthly premium was $252.36.

As from April/2025, my premium rose to $298.12, and INCREASE of 18.13%.

(2) I was then advised by UHC of a second rate increase, effective June 1st, 2025.

My premium is to go up again, to $330.93, an increase of 11% more.

Effectively, my 2025 premium has increased by 31.13% over 2024 rates.

This is both egregious and outrageous.

-- How can AARP stand-by and offer NO push-back to UHC for these unsustainable increases?

-- Where is the voice of AARP, rallying members?

-- Why is AARP not seeking partnerships with other heathcare insurance providers of Medicare Supplemental Plans?

-- Why is AARP sticking with UHC and these out-of-control rate increases?

-- Shouldn't AARP Leadership be speaking out on this, on our behalf?

GailL1

Community Champion ⭐⭐⭐

@DanielG635143

Most all Medigap insurers are raising their rates in 2025 because of the increase in their cost of coverage - the number and amount of claims - and then for some, added risk, when state law allows people to pick up or change plans without underwriting.

Most of them raise their rates in the summer but with a UHC Medigap you may actually get (2) raises if you have a declining premium discount plan which goes up, I believe, on your anniversary date with the plan.

AARP has no authority over UHC Medigap premium rates - like any other insurance, Medigap premiums are based on the coverage, the use, the rating method, and state law.

You have an added problem with your Plan F -

Your premium hikes for Plan F are probably gonna be somewhat higher since the plan is now closed to new younger and healthier beneficiaries that can balance out the older and perhaps sicker beneficiaries. Otherwise, the rates are still based on the usage, medical inflation and the amount of risk the plan has based on state law.

Plan F was closed to new enrollees back in 2020 -

Medicare.gov - Compare Medigap Plan Benefits

from the link ~

Note: Plan C & Plan F aren’t available if you turned 65 on or after January 1, 2020, and to some people under age 65. You might be able to get these plans if you were eligible for Medicare before January 1, 2020, but not yet enrolled.

Now do you live in a state that has expanded their Medigap guaranteed issue period?

See the Figure 2 color coded map at this link to identify which states have [any] of these added consumer protections,

KFF.org 10/18/2024 - Medigap May Be Elusive for Medicare Beneficiaries with Pre-Existing Conditions

To find out any specifics, you can talk to the SHIP office in your state or you can contact an independent Medicare Broker in your area for your state specifics.

HINT: if your state has expanded this guaranteed issue period, that also adds to the insurers risk and usually these states will have higher premiums.

IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna

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DomenicB184782

Contributor ⭐

I expect AARP to stop promoting United Healthcare plans and get their name off of the plans. I feel like this was a bait and switch con job. I'll be switching from UHC to another provider and stopping my membership in AARP. This is the only voice I have.

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DomenicB184782

Contributor ⭐

I expect AARP to stop promoting United Healthcare plans and get their name off of the plans. I feel like this was a bait and switch con job. I'll be switching from UHC to another provider and stopping my membership in AARP. This is the only voice I have.

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