Question: I just got a letter from AARP United HealthCare Options and the letter says the monthly premium rates ARE going up? What options do I have?

Answer: It isn’t just United HealthCare Options that has raised their Medicare Supplement rates for 2023. I have received a number of phone calls in the last few days with this question. Let’s work to clarify the pricing structures and the increases. In New York State the pricing for Medicare Supplement Plans (Medigap) are based on your County of Residence. For the purposes of this article, I am concentrating on Chautauqua & Cattaraugus Counties. New York State allows individuals to change their Medigap insurance anytime you wish, any month, to any plan, to any company.

The most popular Medigap plans sold are Plan F, G, N & K. In our region, United HealthCare Options (UHC) has been a commonly chosen company. In 2023 for many of the Medigap plans, the least expensive company selling those plans is a different company that it used to be. Transamerica Financial is a relatively new company to our part of New York State, but in 2023 is offering very competitive rates for their Medigap plans.

I will review the pricing increases we are seeing from the four companies we see most often. The information provided comes from the Department of Financial Services of NYS. (dfs.ny.gov/consumers/health–insurance/)

In 2023 we are seeing these rates; Medigap Plan F with UHC is $305.50, with Highmark BC/BS is $501.43, with Univera is $440.18, and with Transamerica is $237. Medigap Plan G with UHC is $260.50, with Highmark BC/BS is $257.08, with Univera is $243.80, and with Transamerica is $199. Medigap Plan N with UHC is $195.50, with Highmark BC/BS is $213.79, with Univera is $283.88, and with Transamerica is $186. Medigap Plan K with UHC is $80.25, and with Transamerica is $108.

If you are paying your premium with an Electronic Funds Transfer (EFT) from your bank account, your premium may be lower.

Some insurance plans have had pretty big increases in the new year. I am also surprised to see how little Medicare has changed its deductibles and co-pays structures. Medicare Part B deductible went down to $226. The Part A deductible went up to $1600 (up just $34 from 2022)

If you have a Medicare Supplement Plan and are paying more with the company you have, I would suggest you switch companies. When you buy a Medicare Supplement Plan your coverage from any company is exactly the same coverage. If you buy a Plan F from Humana, or Transamerica, or Univera or BC/BS, 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.

Another important thing to remember is that in New York State 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. If you are paying too much, evaluate the options and switch to a more appropriate level of coverage or a more comfortable premium that covers your needs and budget.

Believe me, when a less expensive company comes along selling Medicare Supplement Plans, I am singing it from the rooftops! I am all about paying less when less is available.

Your Social Security is going up. Your Medicare Part B premium is going down. Maybe now is the time to switch your Medicare Supplement Plan to a less costly alternative. Hoping all the best for you in 2023!

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