Why Is My Medicare Supplement Premium Increasing in South Carolina?
Before accepting another rate increase, it may be worth comparing
what other Medicare Supplement companies are charging.
Question:
I live in South Carolina and have had the same Medicare Supplement
policy for several years. I like having Original Medicare and I’m
happy with the coverage, but my monthly premium keeps increasing.
I don’t necessarily want to change my benefits. I mainly want to
know whether I’m still getting a competitive rate.
Can another company offer the same Medicare Supplement plan for less,
and what should I know before switching?
Answer: A Premium Increase Is a Good Reason to Review Your Options
A Medicare Supplement premium increase doesn’t automatically mean you
should change insurance companies.
But it does give you a good reason to check whether your current
policy is still competitively priced.
Medicare Supplement plans are standardized by plan letter.
That means if you have a standard Plan G, the basic standardized
Plan G benefits are the same regardless of which insurance company
issues the policy.
The premium, however, can be very different.
Same standardized Medigap plan.
Different insurance company.
Potentially a very different premium.
Why Can Medicare Supplement Rates Increase?
Medicare Supplement premiums can change because of several factors,
including healthcare inflation, claims experience, changes in Medicare
costs and the way an insurance company prices its policies.
That is why two people with the same Medigap plan letter may see
different premiums depending on the company and policy.
South Carolina Residents Should Ask How Their Policy Is Rated
One important question is whether your Medicare Supplement policy
uses an issue-age or attained-age
rating method.
With issue-age pricing, your original age when the policy was issued
is part of how your rate is established. Your premium can still rise
because of approved rate changes, but simply getting older does not
create an age-based increase.
With attained-age pricing, your current age is part of the rate
calculation. That means premiums can become more expensive as you
get older in addition to other permitted rate adjustments.
Ask your current company:
“Is my Medicare Supplement policy issue-age or attained-age rated?”
Can Two Companies Charge Different Amounts for Plan G?
Yes.
Standardized Plan G benefits do not become better simply because one
insurance company charges a higher premium.
This makes it worthwhile to periodically compare the same plan letter
among different insurers.
If you’re paying $50 more per month than another available Plan G,
that difference equals $600 per year.
A $75 monthly difference equals $900 per year.
Over several years, those numbers can become significant.
Can I Switch Medicare Supplement Companies Anytime?
You can apply for another Medicare Supplement policy, but approval
may depend on your circumstances.
Your initial Medigap Open Enrollment Period provides important
protections when you first become eligible.
Outside that protected enrollment period or another guaranteed-issue
situation, a South Carolina Medicare Supplement insurer may be able
to use medical underwriting when reviewing your application.
That means your health history may affect whether the new policy
is available to you.
Don’t Cancel Your Current Medicare Supplement First
Finding a lower premium doesn’t mean you should immediately cancel
your existing policy.
Apply for the replacement coverage first.
Make sure the new insurer approves the application and confirm
when the new policy will become effective.
Keep your existing coverage until you know exactly what replacement
coverage you have.
Should I Always Choose the Cheapest Medicare Supplement?
Not necessarily.
Price is extremely important, particularly when you are comparing
the same standardized plan letter.
But today’s cheapest company is not guaranteed to remain the least
expensive company forever.
When comparing carriers, look at the current premium, available
discounts, how the policy is rated, the insurer’s financial strength,
customer service and available information about previous rate changes.
Historical rate increases can provide useful context, but no one can
guarantee what future premiums will be.
What If My Health Has Changed?
This can make comparison shopping more complicated.
You may have purchased your current Medicare Supplement while you were
very healthy and developed medical conditions several years later.
If medical underwriting applies, another insurer may evaluate those
conditions before approving replacement coverage.
That’s one reason not to switch simply because you see a lower price
advertised online.
What About Switching From Plan G to Plan N?
That’s different from simply switching Plan G insurance companies.
When you compare Plan G from one carrier with Plan G from another,
you’re comparing the same standardized benefit package.
Plan N has different cost sharing.
Plan N may have lower premiums, but certain office and emergency room
copayments can apply, and Plan N does not cover Medicare Part B
excess charges.
Before changing plan letters, compare both the premium savings and
the differences in coverage.
How Often Should You Review Your Medigap Rate?
You don’t need to change insurance companies every year.
But receiving a noticeable premium increase is a reasonable time
to review the market.
You may discover that your existing company is still competitively
priced.
Or you may find that another insurer offers the same standardized
coverage for significantly less.
The Bottom Line for South Carolina
An increasing Medicare Supplement premium does not necessarily mean
you made a bad choice.
But you shouldn’t assume that a policy you purchased years ago
remains your most competitive option today.
Instead of asking only:
“Why did my Medicare Supplement premium increase?”
Ask:
“Am I still getting a competitive price for the coverage I want?”
Comparing your current plan with available alternatives can help
you answer that question before making any changes.
Is Your Medicare Supplement Premium Going Up in South 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, also known as Medigap, is private
insurance designed to supplement Original Medicare. Standardized
Medigap benefits are established by applicable federal and state law.
Premiums, discounts, rating methods, underwriting requirements and
availability vary by insurer and applicant.
Outside applicable Medigap Open Enrollment and guaranteed-issue
protections, medical underwriting may apply when applying for
Medicare Supplement coverage in South Carolina.
Medicare Supplement policies may use different premium rating
methodologies. Premiums may change over time and future rate
adjustments cannot be predicted or guaranteed.
Do not terminate existing Medicare Supplement coverage until
replacement coverage has been approved and you understand the
new policy’s effective date and terms.
Medicare Supplement insurance is not Medicare Advantage.
Modern standardized Medigap policies do not include outpatient
prescription drug coverage. Separate Medicare Part D coverage may
be appropriate.
This material is provided for educational purposes only and does
not constitute legal, tax or medical advice. For official Medicare
information, visit Medicare.gov or call 1-800-MEDICARE.