Question: I got a letter from my Medigap insurance company that says the monthly premium rates are going up? Is this a sure thing, and if so when will I start the higher rate?

Answer: Well I have to say that I have heard this from a lot of people this week. AARP United HealthCare Options and Transamerica Financial, sent a letter to all their enrollees informing them of the proposed rate increase. The letter states that this increase has been submitted to the New York State Department of Financal Services, so it is NOT the final word. The formal announcement of the actual price increase will come to you probably in the next few months.

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.

Your insurance company’s proposed price increase will take place after New York State Department of Financial Services has approved it. As you know, the requested amount is a pretty big increase, – bigger than we have seen over the many years that Medigaps have been available. Keep in mind that even with these proposed price increases, your premiums may still be lower with your current insurance company 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 Transamerica, 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 – A, B, C, D, F, G, L, K, M, or N) 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 type (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 from your insurance company. This proposed premium increase is not a sure thing, yet, but they will be notifying you when and if the proposed increase is approved.

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 your current company is doing. I am all about paying less when a lower price is available.

If you are curious about the current rates for any of these plans, you have a useful tool to look up that information. You can call or reach out to me, and I can provide you with the current pricing of all the available companies. You can also use the New York State Department of Financial Services website to look it up yourself at, https://www.dfs.ny.gov/consumers/health_insurance/information_for_medicare_beneficiaries. This website is available for any of us to look up a whole lot of useful information, including the current companies and rates for your zip code within New York State. This website also provides you with contact information for all the companies. This website is worth looking at if you are comfortable using a computer. Please remember that if you live and have coverage outside of New York State, there are other resources, as well as other rules for enrollment.

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.