Many seniors rip open that envelope every year with a sinking feeling in their gut. It’s a notice that their Medigap premium has increased again. As the cost escalates, each year is more frustrating and financially painful.
Stability in healthcare insurance premiums during retirement can eventually become a burden because of escalating costs chipping away at savings. If you feel trapped in a plan that gets more expensive each time you look at your bill, you know what I’m talking about.
This year, many of the largest Medicare Supplement insurers raised premiums by 15% to 20% or more. While there are some explanations about why this happened, it doesn’t provide relief to the affected policyholders.
Keep reading and discover how Medigap premium hikes impact your savings.
What Are Medigap Plans ? … If You Don’t Know Already
Medicare Supplement Insurance, or Medigap, fills the gaps in original Medicare. It covers copayments, coinsurance, and deductibles. This type of supplement insurance is popular with seniors because it has predictable costs and offers peace of mind to protect policyholders from runaway medical bills.
Another reason they’re so popular is that policyholders are not restricted to a provider network. Furthermore, no referrals are required, and prior authorizations for medical services are not required. The flexibility of these plans makes them especially appealing.
Medigap Supplement policies are offered through private insurers. The plans are standardized and identified by letters, like Plan F and Plan G.
While these plans may offer vital coverage, Medigap policies’ premiums are relatively expensive compared to zero- or low-premium Medicare Part C Advantage Plans. As these upfront expenses escalate over time, they can become a financial burden for the elderly.

The Dread of Annual Premium Increases
The reality of inevitable premium increases is predictable. How much they increase is not predictable ? Every year, a letter arrives in your mailbox from your insurer, and that letter contains the dreaded notification that your Medigap premium has risen. For Plan F or Plan G, those increases can be brutal. They can make it harder to afford the same health care coverage as before. Sooner or later, many seniors get squeezed out.
Why Do Medigap Premiums Keep Going Up ?
Several factors explain why Medigap premiums keep rising year in and year out. For starters, there is medical inflation ─ healthcare costs are going up. Medical inflation is real, and it has outpaced inflation on other consumer goods in recent years. With medical services costing more and more, the insurers have to hike premiums to accommodate these costs.
Another reason is the aging population. Elderly people are bound to use more health care services, hence high claims and costs for insurers. Generally speaking, it costs more to ensure 75-year-olds than 65-year-olds. Consequently, it leads to higher premiums as policyholders age. Even if you’re healthy, your premium increases yearly because you are growing older.
Insurers tell us these increases are unavoidable, blaming rising healthcare costs and economic growth. But when you’re affected, that can be a hard pill to swallow. After all, you’re looking to insurance for help paying health-related costs, yet that protection always goes up in price, sometimes outpacing our resources.
The Emotional Impact of Steep Premium Hikes
To most elderly citizens, each rise in premiums does not merely indicate an economic strain ─ it’s also a reminder of financial insecurity at a very advanced age. Many can’t help but feel such inflationary cost pressures are imposed upon the elderly by the same insurance companies they rely on for help. Seniors tend not to feel secure whenever they find themselves trapped within an unending loop of increased premiums and decreased resources.
People who are aging dread higher costs and fear not affording healthcare. This is compounded when seniors are further stressed by a chronic health condition. Now, they face rising costs to pay for their insurance. The growing bills could limit their activities and self-care, worsening their well-being.
Feeling Trapped: Are There Any Alternatives ?
If you’re frustrated by Medigap premium increases, it may be time to start looking around. You are allowed to change plans at any time, so there is a way out of what seems like an inevitable situation.
One option is to change to a different Medigap plan in which the insurance carrier has demonstrated a history of maintaining stable rates over time. The fact is that some insurance companies are more aggressive about premium hikes than others.
Another alternative is moving to a Medicare Part C Advantage plan. However, the decision should not be made without weighing both pros and cons as it has many problems and issues on its own.
Consult with your trusted independent Medicare broker, someone specializing in Medicare Advantage plans. They can help you compare plans and weigh your options.
Coping With the Reality of Rising Premiums
Although premium hikes are a fact of life, there are ways you can manage the blow. Start by putting away an emergency fund to help absorb the increases that will likely continue. Also, explore other ways to lower healthcare costs. Use generic drugs and preventive care. They can help you avoid costly treatments later.
At the end of the day, the frustration is real, and the cost of healthcare only seems to increase. Yet, understanding your options allows you to regain some control over your Medigap Supplement costs come rain or shine. For more detailed comparisons and helpful resources, visit MedicareVideoGuide.com.