2024 Medigap Insurance Rate Increases Vary According To New Analysis

Some 14 million seniors with Medicare Supplement insurance policies typically face yearly rate increases. The increases in 2024 ranged to as much as 20% according to a new analysis being released by the American Association for Medicare Supplement Insurance (AAMSI).

"One of the most important things to consider when selecting a Medicare Supplement (Medigap) plan is the likelihood of future rate increases," explains Jesse Slome, director of the American Association for Medicare Supplement Insurance (AAMSI). "Insurers typically increase Medigap rates each year. Asking the right questions can help you find better options."

According to the analysis conducted for AAMSI by Ken Clark, KLC Actuarial, half of all Medicare Supplement companies implemented double-digit rate increases for their Medigap Plan G policies from May 2023 through April 2024. Plan G is the most popular Medigap plan option selected by seniors turning age 65 and purchasing supplemental Medicare insurance coverage.

Year-over-year rate increases for companies with one million or more Medigap members ranged from 0.0% to as much as 18%. For companies with between 400,000 and one million members rate increases ranged from 7.5% to 20.0%. Those with between 200,000 and 400,000 members, reported rate increases of between 7.5% and 12.0%. Read more at https://medicaresupp.org/medigap-rate-increases-what-seniors-need-to-know/.

"Medigap rates are not guaranteed, something few seniors are aware of or think about when picking a carrier," notes AAMSI's Slome. "The low-rate provider someone is promoting to you may be your best choice or it could be a very costly choice over the long run if you face larger rate increases in subsequent years."

"When comparing Medigap plans in 2024, a senior turning 65 can have anywhere from 4 to 20 different plans and insurers available depending on where they live," Slome explains. "Comparison shopping is the only way to get the best information. Working with a local Medicare insurance agent should be part of your strategy."

The Medicare insurance expert suggests requesting a history of rate increases from the agent you choose to work with. "Each insurance firm has a "cycle" when they increase rates," Slome notes. "It can be any month that the company chooses, so it's smart to ask when their cycle begins."

The Association posts data regarding 2024 Medigap rate increases for Plan G in the top 10 U.S. markets. See the full data at https://medicaresupp.org/best-costs-medigap-2024/.

AAMSI
32504 Carrie Pl
Westlake Village, CA 91361
Jesse Slome, Director

The American Association for Medicare Supplement Insurance (https://www.medicaresupp.org) advocates for the importance of consumer awareness and supports insurance and financial professionals who market Medicare insurance solutions. The organization provides a national free online directory listing local Medigap agents by Zip Code. Access the directory at https://www.medicaresupp.org/find-local-agent/.

This release was published on openPR.