Medigap premiums leap, and consumers have few alternatives
Summary
Medigap insurance premiums, which help cover costs not paid by traditional Medicare, are rising quickly in many parts of the United States. Some people saw increases of 10% to over 40%, making it harder for consumers to find affordable coverage.Key Facts
- Medigap premiums rose by 45% last August for over 80 customers of one Illinois broker.
- Double-digit increases for Medigap policies are becoming common nationwide.
- About 12 million people, or 43% of those in traditional Medicare, buy Medigap plans.
- Plan G is the most popular Medigap plan, with average monthly premiums around $164 in 2023, now increasing.
- Rate hikes in early 2026 filings range from 12% to 26% among major insurers like Aetna, Blue Cross Blue Shield, and UnitedHealthcare.
- Premium changes vary by state, age, and plan type; some states now see yearly increases of 10%-15% instead of the usual 3%-5%.
- Rising medical service use, population aging, higher labor and medical costs, and state rules all contribute to premium increases.
- Insurance companies say higher claims costs and Medicare’s changing deductibles also affect premiums.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.