If you have a Medigap Supplement through virtually any insurance carrier, you've most likely been given a terrible surprise in the form of a very high and almost unheard-of rate increase. When your plan has significant membership – let's think 500 or more members, you likely face substantial rate increases.
Why does that happen? Many reasons… COVID claims, inflation on the cost of medical supplies and health care, new technology innovations in healthcare, etc. Remember the plans must get approval from the Department of Insurance to raise or lower their rates, which means they must PROVE it is necessary. It may be necessary, but it certainly is U-G-L-Y. You picked this because of your freedom of choice, but maybe now it's more than you're willing to pay.
Options When You Can't Afford Your Current Rates
If you are one of those folks that simply cannot afford to pay those rates, you may have options. If you are relatively healthy and don't have any major pre-existing conditions, you might be able to qualify medically for a Medigap Supplement through another insurance carrier that may be offering a lower rate. You could also look at changing plans from an F to a G or from a G to an N, let's say, to save some money each month. Depending on the situation, you may have to medically qualify to make that change as well.
If you don't use Mayo Clinic, you could look at moving over to a network-based all-in-one Medicare Advantage plan. They've come a long way over the years and most people are very pleased with their plans and the care they receive. There's a multitude of plan choices and they will cover all of Medicare's covered services, many have huge networks of providers including national networks, most HMO's no longer need referrals, and if you are leery of HMOs, there are several high-quality PPO options as well. Not to mention, with one of those plans, you will probably get a nice dental benefit, along with hearing and vision benefits, and maybe even some cash on a prepaid card to get you some vitamins or that new fancy toothbrush you've had your eye on.
Special Enrollment Options
If you have a chronic illness like chronic kidney disease, a heart condition, or diabetes, you might be able to join one of those plans right now and not have to wait until January – thereby shedding those Medigap premiums right away.
If none of those conditions apply to you but you really want to consider making the move during the annual enrollment period in October, let's get you in now for a meeting with your advisor so we can see if one of those plans might work well for you. That way we've done most of the work now, giving you a good amount of time to think it over so you are not rushed into a decision during the very short annual enrollment period.
If you have questions about this or any other retirement planning topic or would like to schedule a meeting with your advisor, give us a call at 602-281-3898. We are here to make your retirement journey 123Easy.
By American Retirement Advisors
American Retirement Advisors helps retirees and pre-retirees navigate Medicare, estate planning, and retirement income — so you can enjoy the retirement you've earned.
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Easy Eddie's Take
This is spot on that Medigap rate increases can be shocking. Most people don't realize that Medicare Supplement premiums can go up every year, and carriers like AARP, Blue Cross Blue Shield, and Mutual of Omaha all file rate increases with state insurance departments. The good news is you have real options to explore.
A lot of people ask me, "Can I switch from Medicare Supplement to Medicare Advantage during open enrollment?" The answer is yes – Medicare's Annual Open Enrollment runs from October 15 to December 7 each year, and you can move from any Medigap plan to any Medicare Advantage plan during that window. For 2026, many Medicare Advantage plans in Arizona offer $0 monthly premiums plus extra benefits like dental, vision, and even grocery allowances on prepaid cards.
Here's something that surprises people: if you have certain chronic conditions like diabetes, chronic heart failure, or end-stage renal disease, you might qualify for a Special Needs Plan (SNP) right now, not just during open enrollment. These specialized Medicare Advantage plans are designed specifically for people with your condition and often provide better coordinated care. That could mean dropping those high Medigap premiums immediately instead of waiting months.