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AARP United Healthcare Options Monthly Premium Costs Can Increase

Question: When will AARP United Healthcare Options monthly premiums increase?

Answer: AARP United HealthCare Options each year about this time, sends a letter to all their enrollees informing them of the proposed rate increase to begin Jan. 1, 2021. This letter states that this increase has been submitted to the New York State Department of Finance Services, so it is not final. The formal announcement of the increase will come to by the end of October or beginning of November for a start in January 2021.

In New York state the pricing for Medicare Supplement Plans (Medigap) are based on your county of residence meaning that people within the county pay the same price.

The most popular Medigap plans are by AARP United HealthCare Options (UHC). UHC has for many years had the lowest rates. But in the Northeast, in the last two years, there other companies who are coming in at a lower monthly rate Medigap plans. Univera, BC/BS of Western New York and Transamerica Financial all offer Medigap plans that currently cost less per month than the United Healthcare plans. These companies may also increase rates for 2021.

UHC’s proposed price increase will take place as of January 2021. It is a 14.9% increase, and it more than has been seen in the past. Even with these proposed price increases, UHC premiums are still lower than most other Medicare Supplement Insurance companies.

If you have a Medicare Supplement Plan and will be paying more in the future, you may want to consider switching to an alternative company or plan. When you buy a Medicare Supplement Plan, your coverage from any company is exactly the same coverage. If you buy a Plan G from Humana, or Globe Life, or Univera or BC/BS, or UHC, you are buying the exact same coverage. It’s hard to justify paying more money for the exact same product. That statement is true no matter what Medigap Plan you are talking about. You choose the level of coverage you want, and then buy it from the least expensive company.

The other important thing to remember is that in New York state the Medigap plans are always open enrollment, so you can change the plan you have and the company you buy it from any time you want.

So if you are feeling like you are paying too much, evaluate the options and switch to a more appropriate level of coverage or a more comfortable premium for your coverage needs and budget.

This is a proposed premium increase, but UHC is notifying you about what may happen.

The proposed premium increase may peck away at your monthly budget, so it is worth at least looking into and considering other Medigap plans and Insurance companies to see what they are offering.

Senior Life Matters is a community based program sponsored by Lutheran Jamestown. For questions and concerns or to reach Janell Sluga, GCMC, call us at 716-720-9797 or e-mail at SLM@lutheran-jamestown.org.

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