United Health Raising Rates Mid Year

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@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.  

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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.  

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@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 

📎@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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@papawofboo wrote:

I hope I am not understanding. You pay Medicare then you pay over $300 A MONTH for a supplement plan? 

 

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Yep, some folks do depending on the Medigap plan, it’s extent of coverage, the state where they live and the specific cost of this extra coverage which depends on many things - in and outside of the beneficiary.  But Medigap coverage is a choice - because it really isn’t health coverage - it is financial protection insurance linked to Traditional Medicare in the event of a catastrophic medical event which Traditional Medicare covers.  It is also for those who don’t want to pay any or much for their healthcare cost out of pocket or don’t have the available money to pay it but can afford the premiums (or as long as they can).

Beneficiaries have several different ways of covering the 20% of the Medicare approved amount which Medicare does not pay - but many of these ways involve being eligible for other ways to pay for these out of pocket cost.  This is the way many of those who don’t have another way handle covering these beneficiary responsibility part of the cost.

If a beneficiary wants Traditional Medicare, they have to have some sort of a financial plan or way to cover these cost that Traditional Medicare does not pay.

Of course, there is many times a cheaper (less in premiums) Medigap plan available but each lesser in coverage Medigap plans, which are cheaper in premiums, involve the beneficiary paying more in their part of these healthcare cost -

Cheaper Medigap plan premiums = higher share of their risk (meaning their out of pocket cost).

Then in many states, when they have been on their Medigap plan for many years and the premiums have gone up over time. they find they are stuck with the more expensive plan because they cannot switch to a cheaper or la benefits lesser plans without being penalized with either underwriting and/or a pre-existing condition being excluded for a period of time.  Health conditions disqualify them from changing plans.

Then in the few states that do allow for changing plans at a specified time, they find that their premiums are still on the higher side because modifying the guaranteed issue time period adds more risk to the the plans.

Example - a person has had a very coverage expansive Medigap plan for years and years, like Plan F or now, G,  they have some health problems - but they live in a state that allows for a Medigap plan switch - so they switch Plans but they bring with them their health problems - to the new plan, which increases the risk for all the others in the new plan that they pick.

THUS the reason why many pick a Medicare Advantage (a managed care) plan over Traditional Medicare.  They have been in this type of coverage (managed care) for a long time while working and thus understand their part of the cost - deductible, copays, coinsurance - rules of coverage including prior approvals and step therapies (of which even Traditional Medicare could use if they desire) and are not adverse to paying some part of the cost.  

Several things are a given - and premiums will increase - probably at a steady and increased pace.

1.  Medical cost will continue to go up

2.  people in your plan choice with you will continue to get older and perhaps sicker and will use more and more care, just like you as a member if the plan