Medigap Plan G 7/2024 13% and 1/2025 5% Premium Increase Announcement for Community Priced Product

[garyaneudahl]

I received a letter noting my AARP-UHC Plan G policy premium is going up 13% as of July 2024. It also stated the cost will go up another 5% on top of that for January 2025.

Did AARP dropped the ball for their membership in going with UHC again this year? What's with a mid-year price increase, regardless of the magnitude.  Is it our responsibility to rescue UHC management or their shareholders when they miss their profit targets that badly?

What exactly justifies an 18% price increase in seven months time (from June 2024 to January 2025 premium payments), especially with most of it taken mid-year with very little notice and opportunity to say NO to it?  

Could AARP kindly use this situation to investigate what happened and inform members about it,  across ALL the AARP-sanctioned Medigap healthcare plans? Why did this happen and what are AARP and UHC going to do to effectively contain costs so we don't see another huge price increase anytime soon?  Full disclosure of the knowledge, insight and direction you gain in reviewing the current travesty would go a long way towards assuring us that this isn't going to happen again anytime soon,  We can't afford it, and neither can AARP's reputation,

[JamesH377174 · Accepted solution]

If you have a condition you can't change without underwriting. 

[Ghaeilge1975]

 My UHC Plan G  went up about 12% for mid-year 2024 and will go up another 4% for Jan 2025.

[DarleneS905223]

I joined AARP Dec 2023 to save on my Medigap.  The only reason I joined --I took out 5 yr membership.  UHC AARP sent me letter after 6 months advising 9% increase.  I compared the prices AARP UHC is now charging for this and they are highest. I feel like this was a scam.  How do I get my prepaid membership refunded --AARP is alway saying they look out for seniors.  They aren't helping when the plans they endorse increase the premiums like this.

[DarleneS905223]

I feel that AARP scammed me.  I was enrolled in Dec 2023 in AARP medigap for first time. Told I needed to join.  I took out 5 year AARP thinking I had to keep my membership with them to be enrolled and save money on my plan.  6 months after the UHC AARP sent letter advising 9 % increase.  I looked at other company plans this year and they are all lower.  I want my refund on AARP member.  They say they are looking out for seniors.  This is not what I experienced.  It's seem like they bate us to join.

[MarieB586827]

I realize this is no excuse but I did watch an interesting video on YouTube about the increasing prices of mitigat policies. Apparently during the pandemic nobody went to the Doctor and a lot of procedures were put off. Now that things are back to relatively normal people are going to the Doctor and getting these procedures done in the last few years. So now claims are dramatically going up.  So the insurance companies make tons of money during the pandemic but are now losing money because so many claims are being put. And especially plan G as it is the most popular one right now. As I said it's no excuse the increases are still ridiculous and I totally agree with you. UHC is also one of the bigger companies that a lot of people belong to so that's another reason th3y are getting so ,any claims.

[JamesH377174]

I I signed up for AARP UHC Plan G in 2023. I signed up because I thought you could trust AARP, obviously this is not the case. My Plan G has gone up over 12% in the first year and a half and set to go up again another 5% in January over 17% in two years. I read all of great things about how AARP watches out for seniors but that was bull, AARP UHC is now one of the most expensive Plan G policies and I can't switch because of underwriting. I figured with AARP being so big they would watch out for us and not let UHC  gouge us. I can't believe dumb I was to go with AARP. Don't make my mistake trusting them. All talk and no substance. 

[rbrento]

@JamesH377174 I  guess it depends on where you live bc mine has barely gone up!  It still is the most economical plan in my area. If you live in a "birthday" state, you can change in your birthday month without underwriting. The Medicare Birthday Rule for the 9 states that have it are:
California
Idaho
Illinois
Louisiana
Maryland
Nevada
Oklahoma
Oregon
Kentucky

Plus I love that it covers my gym memberships for most any gym in my town plus the YMCA in a close by town.  And, the aquatic center here too so I can swim at no cost as much as I like!

[cat0w]

@garyaneudahl 

Where are you located? Have you checked other plans for their prices?

[garyaneudahl]

  I was in Illinois, but moved to Texas last year, so no longer a birthday state resident.

[JamesH377174 · Accepted solution]

 I already mentioned that below, if you have a preexisting condition in order to move to another Medigap Plan you have to undergo underwriting. In underwriting the other companies can either turn you down or raise your rates really high. The only other option is to switch to an Advantage Plan with preapprovals and only coverage in your area. 

 Always make your first choice carefully. 

[rbrento]

Not entirely true; if you're in one of the following states, then you can change in your birthday month - Medicare Birthday Rule for the 9 states that have it are:
California
Idaho
Illinois
Louisiana
Maryland
Nevada
Oklahoma
Oregon
Kentucky

[GailL1]

@rbrento 

To add to your list - because the Birthday rule is only one method some states have employed to allow for expanded guaranteed issue periods for their citizens.

Missouri has something called a MediGAP Anniversary - During the Medigap Anniversary, a beneficiary has  60 days (30 days before and 30 days after the anniversary date) to change Medigap carriers without having to answer health questions. You can only switch to a plan with equal benefits (Plan G to Plan G).

NewYork has an Open Enrollment policy for Medigap plans 

Dept of Financial Services NY: Protections For Medicare Beneficiaries Residing in New York State 

from the link:

New York State law and regulation require that any insurer writing Medigap insurance must accept a Medicare enrollee's application for coverage at any time throughout the year. Insurers may not deny the applicant a Medigap policy or make any premium rate distinctions because of health status, claims experience, medical condition or whether the applicant is receiving health care services. However, eligibility for policies offered on a group basis is limited to those individuals who are members of the group to which the policy is issued.

However, their premiums are much, much higher to have this ability to change plans.  As are all the states that offer this benefit at the state level.  

Like this:

New York Medigap Premium Comparison Chart by Plan - Community Rated 09/2024

Know the rules, the premiums and the type of plan you can switch to when trying to change in these states that have these extended guaranteed issue periods.

Texas is not a state that allows 

[sg65301371]

That depends on the state you are on.  Oregon for example, has a Birthday rule where you can switch medigap during your birth month with no underwriting

[garyaneudahl]

 I am in Texas, in the northeast suburbs of Dallas, and I have been using the Medicare.gov website to contact alternatives. There are less costly Plan G alternatives for my area. Nonetheless, for simplicity's sake, I'll likely stay with the AARP-UHC policy until the new year.

[JamesH377174 · Accepted solution]

If you have a condition you can't change without underwriting. 

[rbrento]

Check the Birthday Rule where you do not need underwriting.

[scubagolf]

Unless you live in one of the "Birthday Rule" states, where you can switch for a period of time after your birthday to a plan of equal or lessor coverage without going thru underwriting.