Has Your Medicare Supplement Rate Increased?

Has Your Medicare Supplement Rate Increased?

In most cases, a Medicare supplement rate is set during the first year that you sign up for it. Depending on the company, this rate might increase later on in your policy. Obviously, there is nothing favorable about watching your premiums increase as you age. Some of the carriers are doing so at an alarming rate, raising the prices by ten percent or more each year, far more than the cost of inflation. Thankfully, there are things that you can do about this.

You Can Switch to a Provider with a Better Medicare Supplement Rate

First and foremost, you can change your Medicare supplement rate by signing up with a different company. A common question regarding this issue is when it is okay for you to switch to a different provider. The answer is straightforward. You can do so whenever you want. In most states in the union, there is no open enrollment period as long as you are already a beneficiary of Medicare. Once you have been approved for a given medicare supplement plan, you are free to choose which provider you pay for the service. Unfortunately, if you have a health condition, some insurance companies will not allow you to start a policy with them.

Be Sure to Understand the Pricing Scheme

If you choose to switch from one provider to another for your medigap policy, make sure that you understand the pricing. There are three different ways that an insurance carrier will charge you for your medigap policy. They will either base their rate on your age when you sign up, your age as you continue to grow older, or they will base it on the community. Pricing based on your age when you sign up or the community will not increase as you get older, except to compensate for inflation, so these are the best plans to sign up for.

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