A Medicare Supplement is a wonderful product. If you’ve ever had a significant health event while carrying a Medicare Supplement, you probably had very little out of pocket expense. Supplements are easy to use, provide freedom of choice and travel with you. When my parents aged into Medicare, the supplement was the plan I chose for them.
Seniors who have carried a Medicare Supplement for more than a few years have likely noticed some increases. Medigap price increases as you age are normal, and insurance companies raise your rate depending on which pricing system they subscribe to (a topic for another day). You may have noticed that the last few increases were higher than normal. Does this mean you chose the wrong company? Not necessarily. Right now, all companies are experiencing greater increases than normal.
I have a few suspicions why:
Medicare Supplements at age 65 are underpriced. Simple as that sounds, I’ve been watching these prices over the last 11 years, and the starting price for a Med Supp hasn’t budged. A 65-year-old female can purchase Plan G for around $100 a month, and it’s been that way for a long time, despite rising medical costs.
Seniors postpone medical procedures until they age into Medicare. Can you blame them? If you need a knee replacement, it makes sense to hold out for a few more years until Medicare will cover it. This has dramatically impacted insurance companies’ loss ratios.
Increases are never fun. They can impact your ability to provide for your family and chew up your hard-earned retirement. I always tell clients to take a deep breath and try to remember what a phenomenal product a Medicare Supplement is. Don’t get frustrated and cancel it without seriously considering the implications.
If you are in good health, we can always try to lower your premium, but I’ve talked to far too many seniors who’ve gotten rid of their supplement right before they really needed it, which costs so much more in the long run.
If you’d like me to review your Medicare Supplement, please give us a call at 800-750-2407 or make an appointment to sit down with us at 2604 Long Prairie Road (Suite 100) in Flower Mound.
God bless.
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