My Medicare Supplement Rate Went Up in North Carolina — Should I Shop Again?
A premium increase doesn’t always mean you should change coverage,
but it may be the right time to compare what other companies are charging.
Question:
I live in North Carolina and have had the same Medicare Supplement
policy for a few years. I like having Original Medicare and don’t
necessarily want different benefits, but my supplement premium has
increased again.
I’m starting to wonder whether I’ve stayed with the same insurance
company simply because it was easier.
If another company sells the same Medicare Supplement plan for less,
can I switch? And how do I know whether the savings are worth making a change?
Answer: You Don’t Have to Assume Your Current Medigap Rate Is Still Competitive
Medicare Supplement insurance is different from many other types of
health insurance because the benefits of standardized Medigap plans
are defined by plan letter.
If you own a standard Plan G, another company’s standard Plan G provides
the same standardized Plan G benefits.
But the price can be different.
You may be able to keep the same Medigap plan letter
without keeping the same insurance company.
Why Can Two North Carolina Plan G Policies Have Different Premiums?
The standardized insurance benefits may be the same, but insurance
companies establish their own approved premiums.
In North Carolina, rates can be affected by factors such as your age,
where you live, tobacco status, available discounts and, when applicable,
medical underwriting.
This is why comparing Plan G from one company with Plan G from several
other companies can be worthwhile after a significant rate increase.
A Lower Quote Doesn’t Automatically Mean You Can Switch
This is probably the most important part of the comparison.
During your initial Medigap Open Enrollment Period, you have important
protections regarding your health.
Once that period has passed, North Carolina insurers may use medical
underwriting when you apply for another Medicare Supplement policy,
unless you qualify for a specific guaranteed-issue right.
In other words, seeing a cheaper Plan G online does not necessarily
mean you are guaranteed to qualify for it.
Don’t Cancel Your Existing Policy Before You’re Approved
If you decide to apply with another Medicare Supplement company,
keep your existing coverage in force while the new application is
being reviewed.
A lower quote is not the same thing as an approved policy.
Confirm approval and the effective date of your replacement coverage
before terminating what you already have.
How Much Savings Is Enough to Make Shopping Worthwhile?
There isn’t one magic number.
Saving $8 or $10 per month may not feel significant enough to justify
changing companies.
But what if the difference is $50 per month?
That’s $600 per year.
A $75 monthly difference equals $900 per year.
Over several years, those differences can become meaningful,
particularly for a retired household paying premiums for two people.
Don’t Compare Only Today’s Price
The least expensive company today will not necessarily remain the
least expensive company forever.
Medicare Supplement premiums can change over time.
When reviewing another carrier, consider the current premium together
with available discounts, the insurer’s financial strength, customer
service and whatever reliable information is available about its
previous rate history.
Rate history can provide context, but no one can guarantee what a
company’s future premium increases will be.
Should I Change From Plan G to Plan N to Save More?
That’s a different decision.
Moving from one Plan G carrier to another Plan G carrier allows you
to compare prices for the same standardized benefit package.
Moving from Plan G to Plan N changes how your coverage works.
Plan N may have a lower premium, but it includes certain cost sharing
that Plan G does not and does not cover Medicare Part B excess charges.
Before changing plan letters, make sure the additional savings justify
the differences in benefits for you.
North Carolina Gives Consumers a Useful Comparison Tool
The North Carolina Department of Insurance provides access to a Medicare
Supplement premium comparison tool where consumers can enter information
such as ZIP code, age, gender and tobacco status and see companies
offering standardized plans.
That can be a helpful starting point.
An actual application or quote may still differ depending on discounts,
underwriting and other factors, so the comparison should not be treated
as a guaranteed premium.
What If My Health Has Changed?
This is where staying with an older policy can sometimes have value
even if the premium has increased.
If your health has changed significantly since you originally enrolled,
another carrier may not approve your application when medical underwriting
is permitted.
That is why the decision should be:
Compare first. Apply second. Cancel the old policy only after
you know exactly what you have been approved for.
The Bottom Line for North Carolina
You don’t necessarily need to change Medicare Supplement companies
every time your premium increases.
But you also shouldn’t assume that the company you selected several
years ago is still the most competitively priced option today.
If you like your current standardized plan, start by comparing that
same plan letter among available insurers.
The question isn’t simply:
“Did my premium go up?”
The better question is: “Am I still getting a competitive rate for
the Medicare Supplement coverage I want?”
Has Your Medicare Supplement Premium Increased in North Carolina?
Mintco Financial can help you compare available Medicare Supplement
companies and see whether your current rate is still competitive.
Medicare Disclosure:
Mintco Financial is not connected with or endorsed by the U.S.
government or the federal Medicare program.
Medicare Supplement insurance is private insurance designed to
supplement Original Medicare. Standardized Medigap benefits are
established by applicable federal and state law. Premiums, discounts,
underwriting requirements and availability vary by insurer and applicant.
In North Carolina, medical underwriting may apply when applying for
Medicare Supplement coverage outside your Medigap Open Enrollment
Period unless an applicable guaranteed-issue right exists.
Do not cancel existing Medicare Supplement coverage until replacement
coverage has been approved and you have confirmed its effective date
and terms.
Insurance premiums and future rate changes cannot be guaranteed.
Historical premium changes do not predict future rate adjustments.
This material is for educational purposes only and is not legal,
tax or medical advice. For official Medicare information, visit
Medicare.gov or call 1-800-MEDICARE.