Medigap Increases and What to Expect

In preparation for the increases in Medigap rates, Jae Oh, author of Maximize Your Medicare, explains what to expect.
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No one likes having expenses rise, but as Medigap rates rise, here’s what to expect, according to Jae Oh, author of Maximize Your Medicare.

Medigap rates will increase in two ways. The first way is the natural increase as people age. Logically it makes sense, there are increased health care risks and expected health care costs as people get older. The second reason for the increase is the annual changes to Medigap. 

These changes could end up in the double digits, but there are some steps you can take to limit the changes to your rates, said Oh. Some states have more relaxed regulations for switching carriers. This is easiest for people who are already in good health because they will not be subject to as many medical questions.

When the number of conditions that a person has rises, the ability to change goes down. For people who just have common medications, they can still switch with just a slight amount of difficulty. But for people with preexisting conditions, it is more difficult due to the fact that they must complete more medical underwriting, said Oh.

However, during the fall, when people can apply for Medicare Advantage programs, it is easier for everyone to go in and compare the costs of Medigap premiums as opposed to Medicare Advantage premiums, said Oh. Make sure to look carefully at the differences between the two health care plans.