Shocking Medicare Plan G & Plan N Rate Increases!
In recent times, many of us have noticed a steady rise in Medigap premiums. Ever wondered why? This uptick is largely attributed to escalating healthcare costs and the longer-lasting impacts of the COVID-19 pandemic. During the pandemic, numerous elective procedures such as knee and hip replacements were delayed, leading to a backlog in services. As healthcare providers work through this influx of delayed procedures, there has been a surge in medical claims. Consequently, all these factors have contributed to higher Medigap plan premiums. But fear not, there are ways to manage these rising costs.
Why Your Medigap Premiums Are Going Up
The primary reasons for the rise in Medigap premiums are the increasing healthcare costs and a surge in medical service utilization post-pandemic. The delay in elective medical procedures during the pandemic has created a situation where healthcare providers now face a significant backlog. This results in an increased demand for services, driving up costs and claims simultaneously.
Maintaining Your Medigap Plan G Coverage
Medigap plans are standardized by the Centers for Medicare & Medicaid Services (CMS). Medicare Supplement Plan G offers the same benefits regardless of the insurance company. This means that ABC Insurance Company’s Plan G provides identical coverage to that of XYZ Insurance Company. While benefits are consistent, the premiums can vary significantly among different providers. This standardization ensures you get the same coverage, but there’s potential to save by shopping around for a lower Premium.
Example: Real Savings With A Simple Switch
Switching providers can result in significant savings without losing any benefits. A real-life example involves a couple whose combined monthly premium for Plan G was $412.30. By switching insurers, they reduced their premiums significantly, saving them $2,496 annually. Such changes do not affect your coverage or the healthcare providers you can visit, as long as they accept Medicare.
Choosing the Right Plan for Cost Efficiency
Another approach to managing Medigap costs is choosing a plan with more out-of-pocket expenses, trading off some benefits for lower premiums. Transitioning from Plan F to Plan G, or even Plan G to Plan N, might be beneficial. For example, Plan G requires you to pay a small Part B Deductible but incurs lower premiums compared to Plan F. Similarly, Plan N involves cost-sharing with office copays, yet offers greater savings on premiums.
Becoming comfortable with these plans takes time. Once beneficiaries have a deeper understanding of how these plans work, they often move to such plans to save money. For instance, one client switched from Plan G, saving $1,185 annually by opting for Plan N with a reduced premium.
Comparing Medigap to Medicare Advantage Plans
Some may consider switching to a Medicare Advantage Plan to cut costs, but there are caveats. A high-Deductible Medigap plan is another alternative, often offering premiums under $100 monthly. It allows you to visit any Medicare-accepting provider without worrying about network restrictions. Moreover, with Medigap, Medicare is still the primary manager of your healthcare, as opposed to an insurance company in the case of Medicare Advantage Plans.
It’s important to note that Medicare Advantage Plans are not immune to rising healthcare service usage, which might lead them to change benefits or withdraw from certain locations. Hence, it’s crucial to weigh the options carefully.
Navigating Through Medigap Options
The myriad of Medigap options can indeed be overwhelming. A great starting point is visiting medicare.gov, which lists current Medigap rates. However, you must contact each insurance company of interest individually, which can be time-consuming. Moreover, transitioning between plans often requires answering health-related questions due to Medigap’s allowance to medically underwrite applications. This step is necessary as Medigap plans are supplemental and not governed by the Affordable Care Act’s regulations.
The Role of State Guidelines and Advisors
Some states offer specific annual enrollment opportunities with separate guidelines from the federal ones. Your insurance company should inform you annually if such opportunities exist in your state. Given that changing plans isn’t always straightforward, it’s beneficial to consult with an insurance adviser. They can help navigate options without the hassle, ensuring you don’t disclose unnecessary personal information.
The Importance of Timely Decision-Making
Making timely decisions regarding your Medigap plan can lead to considerable savings. For example, a client may reconsider their Medigap company to save a seemingly modest amount monthly. However, delaying such changes can lead to missed opportunities for savings, especially if health conditions arise that restrict eligibility for plan changes.
Conclusion: Make the Change Before It’s Too Late
While staying with your preferred Medigap company for peace of mind is valid, it’s crucial to stay vigilant about rising premiums. Regularly reviewing your premium status and exploring available options can help manage costs effectively. With the right approach, it’s possible to keep your Medigap premium in check and continue to enjoy the benefits that these plans offer.
Exploring Medigap plans thoroughly empowers beneficiaries to make informed decisions. Whether it’s changing providers or switching plans, being proactive can lead to substantial savings without compromising on health coverage. Consider seeking a free Medigap quote to understand how your current plan compares to others in today’s market.
Michael Quinn is a seasoned Medicare insurance expert and licensed agent dedicated to simplifying the complexities of healthcare coverage. With over a decade of experience, he is a trusted advisor known for his compassionate guidance and commitment to empowering individuals. As the Cofounder of REMEDIGAP in 2013, Michael offers unbiased resources and personalized support to assist clients in making informed decisions.
His expertise has been recognized on reputable platforms such as USA Today and Nerdwallet, solidifying his reputation as a reliable and knowledgeable industry leader. With a Master's Degree in Communicative Disorders, Michael combines strong communication skills with a genuine passion for positively impacting lives through tailored insurance solutions.
Medicare Supplement Plans
Written by Michael Quinn
Licensed Broker, REMEDIGAP Founder
Fact Checked by Joann Quinn
Chief Compliance Officer
As a licensed insurance broker, REMEDIGAP upholds the principles of integrity in our editorial standards and ensures transparency in how we receive compensation from our insurance partners.
