Wondering where Ruth and her buddies have been? They’ve been traveling – big trips including France, India and Iceland. They are home and asking questions. It is the first of the year and bills are coming in from holiday expenses. Then you open the mail and find out your Medicare Supplement premium has increased – OUCH!
You may be like Ruth who is healthy, exercises and watches her diet. She doesn’t visit the doctor all that often. So why a rate increase? You may have heard the saying that two (2) things are certain – death and taxes. Maybe you should add rate increases! Rate increases happen to everyone with a Medicare Supplement plan – it’s inevitable. Every company must raise their rates at some point. And, you’re not alone. Companies are not allowed to raise one person’s rate without raising everyone’s. And, no, rate increases have nothing to do with your age or health! Why do rates increase? When companies set their rates, they try to predict what their claims will be. As you can image, this is difficult because most enroll during their guaranteed period when no medical questions were asked. Rate increases are not only based on health care costs and claims experience but also inflation and the cost of doing business – administration costs, new technology. Even though you selected a company with a conservative, stable history of rate increases, rates will increase over time. What’s an average rate increase? Typically, anywhere from 3% to 10% year over year. Regardless of what company you have, your rate will rise at some point. What can you do when your rate increases? You can’t avoid rate increases. It’s just part of having a Medicare Supplement plan. You can shop for another plan. And you can shop any time throughout the year. In the world of Medicare Supplement plans, every company must follow government regulations. This means each plan must have the same benefits. Plan G with XYZ company has the same benefits are Plan G with ABC company. How do I change Medicare Supplement plans or companies? You will have to answer a set of questions about your health. The insurance company’s “underwriter” will look at your answers to these questions and determine if they can insure you. You will have to be accepted to change to another Medicare Supplement plan. Even if you have a medical condition, you may not be automatically disqualified. There is a chance some companies will not accept your application. Each insurance company has its own health requirements. (If you have medical conditions, your current Medicare Supplement plan CANNOT cancel your policy.) There is no harm in confirming that your plan is the best plan for you. Get a free policy review. Contact an unbiased agent who will advocate for you and represents multiple companies. There is no harm in confirming that your plan is the best plan for you. Got questions? Call 501-868-6650 and say “Caroline, can we talk?”
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AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
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