Question: I just got a letter from my Medicare Supplement Plan and the letter says the monthly premium rates are going up? It is a HUGE increase!

Answer: Well, I have to say that I have heard this from a lot of people recently on this topic. Each year at about this time, the insurance companies send a letter to all their enrollees informing them of the proposed rate increase to begin January 1. The letter you received states that this increase has been submitted to the New York State Department of Finance Services, so it is not the final word. The final announcement of the actual price increase will come to you probably toward the end of October, beginning of November starting January 1st. Some years these letters came even later and therefore the price increase was also delayed.

In New York State the pricing for Medicare Supplement Plans (Medigap) are based on your County of Residence. This means that everyone within the county pays the same price for the same plan.

Currently the most popular Medigap plans are Plan F and C for older Medicare recipients (those eligible for Medicare prior to January 2020). For those newer to Medicare, Plans G, N and K are very popular. Each company that sells the Medigap plans sent out this letter indicating a proposed price increase. Some of them I heard were over 20% increases! I will be very surprised if any of these companies are granted an increase of that size. New York State will be working on their request and make the final decision about how much each company is allowed to increase the premiums.

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 based on the letter plan you choose. If you buy a Plan G from Humana, or Globe Life, or Univera or Highmark, or UHC- you are buying the exact same coverage! I find it 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 (Letter Plan) 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 (letter) 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.

I hope this helped to clarify the proposed premium increase letter you received. This proposed premium increase is not a sure thing, yet, but your insurance company is required to notify you about what may happen.

I understand that this proposed premium increase will peck away at your monthly budget. I understand your frustration. That is why I think it is worth at least looking into and considering other Medigap Plans and Insurance companies to see what they are offering, once you know what will actually happen in the new year. I am all about paying less when a lower price is available.

I review the pricing available each month on the website of the Department of Financial Services of NYS. That is updated monthly on the first business day of the month, for that month’s pricing. This website includes information from the companies selling Medigap plans in our region. The Department of Financial Services of NYS website is dfs.ny.gov/consumers/health–insurance/. You are free to review that information yourself.

You will receive the approved increase rate before NYS publishes it, because your insurance company must inform you 60 days before the rate increases. So, continue to watch your mail as the year progresses and probably closer to the end of the year you will receive the actual rate increase directly from your insurance company. Once you know that you can decide what to do about coverage for 2024.

Janell Sluga is a Geriatric Care Manager helping seniors in our community access services and insurance. To reach her, please email editorial@post-journal.com.