Typically, Medicare Supplement rate increases take effect on specific dates, such as the renewal date of a client’s plan. However, there is a simple way to determine if an increase will affect your clients’ plan. As a Sales Trainer at CSG Actuarial, I’ll outline the process in this article. Several reasons can lead to an increase in the cost of Medicare Supplement coverage. The first is the pricing structure. Some companies have community rated plans, which mean that all customers pay the same amount. Despite the fact that community rated plans are generally less expensive than individual policies, they still have a cap on the amount they can raise their rates. Click here for more info.
When comparing plans, consider how the rates will increase over time. Generally, Medicare Supplement rates will increase 2% to 6% each year. The higher your premium, the higher your rate. In other words, if you have a high deductible plan, you will have to reach it before you get 100% coverage. There are many other factors that will affect the rate of your plan, including your age and the method of pricing at the time of enrollment. Typically, Medicare Supplement Plan G rate increases will be anywhere from two to six percent.
Luckily, this is not the end of your life! The best way to avoid paying too much for your Medicare Supplement plan is to shop around for a new plan every few years. Since insurance companies typically last for two or three years, it is critical to shop for a new plan every two or three years to ensure that you are getting the best value for your money. When you shop for a new plan, make sure to compare rates across all insurers to find the best deal. There are some factors you can use to determine if your Medicare Supplement rate increase will be too high or too low.
You may be able to choose a higher deductible plan for your Medicare Supplement plan. If you are able to do this, you’ll be paying less for your coverage. If you are a high-deductible plan, you will be reaching the deductible before you get 100% coverage. As you can see, Medicare Supplement rate increases can be costly. You can avoid a rate increase by choosing a different plan. A plan with a higher yearly premium will be more affordable for you.
The rate of Medicare Supplement plans can go up and down with your age. You should shop around every two to three years to make sure you are getting the best rate. If your age is not the only factor, then you can choose a lower deductible plan that includes an accelerated aging process. If you have a low monthly premium, consider a no-age rated plan. It is likely to be cheaper at first, but you should re-evaluate it each year.