Medicare Supplement Rate Increases: Why They Happen and What You Can Do

First, What a Rate Increase Is Not

Before looking at causes, a few clarifying points can ease some of the worry.

A rate increase does not change your benefits. Medigap plans are standardized, which means a Plan G offers the same coverage no matter which company sells it. Your insurer cannot respond to higher costs by trimming what the plan pays.

It also does not end your coverage. A Medigap policy is generally guaranteed renewable, which means the insurer cannot cancel it because you used it or because your health changed, as long as you keep paying the premium. What changes is the price.

And an increase on your policy is not necessarily a sign that you are being singled out. Insurers generally set rates for a whole group of policyholders, not for you personally after you have enrolled.

Where Medigap Increases Come From

Pricing method	What drives your premium	Rises as you age?
Community-rated	Same price for everyone on the plan	No, though costs still push it up
Issue-age rated	Age when you bought the policy	No, though costs still push it up
Attained-age rated	Your current age	Yes, every year

Several things push premiums up, and they can happen at the same time.

Your age, if your policy is priced that way

Insurers price Medigap in one of three ways, and Medicare notes that each company decides how it will set its prices.

• Community-rated. Everyone with the same plan pays the same premium no matter their age. Premiums can still rise over time because of costs, but not because you turned a year older.
• Issue-age rated. Your premium is based on the age you were when you bought the policy. A person who bought at 65 pays less than one who bought at 72, and the premium does not rise because you age. It still rises with costs.
• Attained-age rated. Your premium is based on your current age and goes up as you get older. This is common, and it often starts lower than the other two types.

If your policy is attained-age rated, you will see a built-in increase each year in addition to any general increase. Many people do not realize that two different forces are acting on their bill. It is worth checking your policy or asking your insurer which method yours uses.

Rising medical costs and more use of care

The most direct reason is that Medigap pays the portion of care that Original Medicare does not. When hospital and doctor prices go up, and when beneficiaries use more services, the amounts Medigap insurers pay out go up too. Experts quoted in news coverage of recent increases cite higher use of medical services, an aging population, and rising labor and medical costs among the causes.

Shifts in who is in the pool

Medigap insurers rely on spreading costs across all the people holding a given plan. If healthier people leave a pool, or if the people joining it are, on average, using more care, the remaining policyholders’ costs rise. Movement between Original Medicare and Medicare Advantage is one factor that observers have pointed to, because people entering or leaving Medigap can change the mix of risk in the pool.

Catching up on past pricing

Insurers file their rates with state regulators based on what they expect claims to cost. When actual claims run higher than predicted, insurers may request larger increases in later years to correct their rates. One consulting actuary quoted in recent CBS News reporting said carriers appear to be correcting rates because of pressure on their claims experience. That may help explain why some years bring bigger jumps than others and why different companies can have very different year-to-year changes.

How Rate Increases Are Regulated

Medigap is regulated at the state level, and states vary in how they review rate changes. Federal law sets the standard benefit plans, and states set the rules for how insurers price and file them. One common standard comes from the National Association of Insurance Commissioners’ model regulation: a policy form must be expected, over the whole period its rates are computed for, to return a minimum share of earned premium to policyholders as benefits. For individual policies, that share is 65%, with 75% for group policies. States adopt their own versions of the model, so ask your state insurance department how the standard applies to your policy.

How a state reviews rate changes can differ. In some states regulators must approve increases before they take effect. In others, insurers file rates and regulators review them afterward. In Ohio, the Medicare supplement rule (Ohio Administrative Code 3901-8-08) says an insurer may not use or change premium rates unless they have been filed with and approved by the superintendent of insurance. If you want to understand how your state handles it, or want to raise a concern about an increase, your state’s insurance department is the place to ask. Our page on Ohio Medigap regulations covers some of the state’s rules.

What You Can Do

Once you know why premiums rise, the question becomes what to do about it. Here are the realistic options, along with their trade-offs.

1. Keep your policy

Sometimes the right answer is to do nothing. Your coverage is the same, you know how it works, and you cannot be dropped for using it. If your health has changed since you bought the policy, staying put may be the only way to keep this level of coverage, as discussed below.

2. Shop the same plan letter with another insurer

Because benefits are identical, the premium is the main difference between companies selling the same plan letter. Medicare notes that the price is the only difference between policies with the same letter sold by different companies, which is why comparison shopping is the most common response to a rate increase.

The catch is underwriting. Outside your six-month Medigap open enrollment period, or a guaranteed issue situation, an insurer in most states can ask health questions and may decline you or charge more based on your answers. Our post on Medigap medical underwriting describes what they ask and how they decide, and our post on why Medigap is not part of open enrollment explains why this window is so different from the rest of Medicare.

Some states have a “birthday rule” or similar protection that allows people to switch to another company’s Medigap policy without underwriting during a window around their birthday. Depending on the state, the new policy must be the same plan letter or may be an equal or lesser one. According to the National Association of Insurance Commissioners’ state chart (updated May 2026), Kentucky and Indiana have a birthday rule, and Ohio does not. Kentucky’s window runs 60 days from your birthday, and Indiana’s rule took effect in January 2026 and was amended in 2026. That means an Ohio switch will generally involve health questions. Details differ by state and laws change, so confirm with your state insurance department before relying on this either way.

3. Change the plan letter

Moving to a plan with less coverage, such as from Plan G to Plan N, or to a high-deductible Plan G, can reduce your monthly premium. The trade is more cost sharing when you use care. Our comparison of Plan G and Plan N and our page on the high-deductible Plan G explain what you would be taking on. Moving to a plan with less coverage is a decision about risk. Going back to more coverage later may require underwriting.

4. Look at discounts and plan features

Many insurers offer discounts, such as for household members, paying by automatic bank draft, or not using tobacco. Some also sell Medicare SELECT policies, which use a hospital network in exchange for lower premiums. Ask your current insurer what discounts it offers.

5. Consider Medicare Advantage

Some people respond to a rate increase by moving to a Medicare Advantage plan, which often has a lower monthly premium and a yearly out-of-pocket limit, in exchange for a provider network and prior authorization. This is a significant change, not just a different premium. If you leave Medigap and later want it back, you may face health questions or higher prices, with limited exceptions. Read our posts on trial rights when leaving Medigap and switching back to Original Medicare before making a move, and see our cost-comparison framework.

Rules of Thumb Before You Switch

If you decide to apply for a new policy, a few precautions can keep you from ending up without coverage.

• Do not cancel your current policy first. Wait until the new one has been approved and is in force. Medicare notes that you generally have 30 days after you get a new policy to decide whether to keep it, and you may keep both during that time.
• Answer health questions completely. Inaccurate answers can cause problems later.
• Look at the waiting period. If your current policy is less than six months old, a new policy may make you wait up to six months for pre-existing conditions, with credit for time you have already been covered. A benefit that is in the new policy but not in your current one can also carry a waiting period.
• Think in years, not months. A policy with a low starting premium may rise faster, especially if it is attained-age rated. Ask how the premium is calculated, and compare more than the first year.
• Be skeptical of pressure. Unsolicited calls or offers of gifts for switching are warning signs. Our page on changing your Medigap policy explains the rules.

Step by Step: What to Do When the Increase Notice Arrives

A rate-increase letter can feel urgent, but you usually have time to think. Here is a sequence that keeps you from reacting too fast.

Step 1: Read the notice closely. Find the new premium, the date it takes effect and any explanation. Compare it with your current bill. Notice whether the change is a general rate increase, an age-based change or both.

Step 2: Find out how your policy is priced. Look at your policy documents or ask the insurer whether it is community-rated, issue-age rated or attained-age rated. That tells you how much of the increase is from your birthday and how much is from costs.

Step 3: Check your own health and underwriting position. Before you apply anywhere else, be realistic. Are there conditions, recent hospital stays or medicines that an underwriter would ask about? If so, switching may be difficult, and that is a reason to weigh staying put more heavily.

Step 4: Look for any right to switch without health questions. That could be a guaranteed issue right, a birthday-rule window if your state has one, or your six-month open enrollment if you are new to Part B. Our post on why Medigap is not part of open enrollment explains the difference.

Step 5: Get comparable quotes. Compare the same plan letter from several companies, and make sure the quotes are built on the same assumptions about age, ZIP code, tobacco use and discounts.

Step 6: Compare more than the first year. Ask how each company prices the policy, and think about how the premium might change as you age. A low starting price can be followed by steeper increases.

Step 7: Apply, but keep your current policy. Do not cancel until the new policy is approved and in force. Ask for the effective date in writing.

Step 8: Use the free-look period. Medicare notes that you have 30 days after you get a new Medigap policy to decide whether to keep it. Keep both policies in force during that time so there is no gap in coverage.

Step 9: Cancel the old policy only after you are sure. Confirm the date, and keep the cancellation notice.

How It Plays Out in Different Situations

The right answer depends heavily on where you start.

• You are healthy and have had no recent health changes. Shopping the same plan letter may save money, and underwriting is more likely to go smoothly. Still compare future price changes, not only today’s price.
• Your health has changed since you bought the policy. You may not be able to switch without being declined or rated up, so the question becomes how to manage the cost of the policy you have. Look at discounts, and consider whether a different plan letter with more cost sharing is a fit for you.
• You are inside your six-month Medigap open enrollment period. That window begins when you are 65 or older and enrolled in Part B, and during it companies cannot decline you for health reasons. Use it carefully.
• You live in a state with a birthday rule. Kentucky and Indiana are among the states that have one, according to the National Association of Insurance Commissioners. These windows are usually short and have conditions, so confirm the details with your state insurance department.
• You live in Ohio. Ohio does not have a birthday rule, so a switch generally means answering health questions. That makes it more important to look at your health before you apply.
• You are on a limited income. Ask whether a Medicare Savings Program or Medicaid could help. Our post on Medicare Savings Programs explains what is available.
• You are thinking about Medicare Advantage. Weigh the network, the prior authorization rules and the difficulty of coming back to Medigap.

Three Hypothetical Situations

Picture a retiree whose attained-age policy rises every year. Their general rate has been steady, but each birthday adds an increase. They should ask what the premium may look like in five years, and compare that to policies that price differently. A policy that looks more expensive today but rises more slowly could be a better value over time. The reverse can also be true, so the comparison should be run on both.

Picture someone who was recently treated for a serious illness. They are unlikely to find a better price by switching, since underwriting could decline them. The better use of their time is to ask their current insurer about discounts and to check whether other help exists.

Picture a couple who each hold a policy with the same company. A household discount may apply, and moving one policy could affect it. They should ask the insurer, and any new insurer, how discounts work.

Common Costly Mistakes

• Canceling the old policy before the new one is confirmed. This can leave you uninsured for cost sharing exactly when you need it.
• Chasing the lowest first-year price. Premiums can change quickly after the first year.
• Answering health questions inaccurately. Errors can lead to trouble when you file a claim.
• Assuming a lower premium means the same coverage. Check that the plan letter is the one you intend.
• Switching to a lesser plan without understanding the extra exposure. Make sure you can afford the added cost sharing in a bad year.
• Leaving Medigap for Medicare Advantage on impulse. The way back may be restricted.
• Ignoring the notice. The new premium applies whether or not you pay attention, and an unpaid premium can end your coverage.

What to Ask Your Insurer

• Why is the premium increasing, and how is my policy priced?
• What is my premium history for the last few years?
• Are there discounts I qualify for, such as household, payment method or tobacco-free?
• Is there a lower-cost plan letter or network option, and what would I give up?
• Is a premium payment grace period available if I need time to arrange payment?

If Something Goes Wrong

• You are declined for a new policy. Your current policy remains in force. Ask the new insurer what it based the decision on, and talk to your current insurer about discounts.
• You think the increase is unfair or incorrect. Ask the insurer to explain it in writing, and contact your state insurance department, which regulates Medigap rates and handles complaints.
• You missed a premium payment. Call the insurer immediately and ask about the grace period and how to reinstate coverage. Do not wait for another notice.
• Your new policy has a waiting period for a pre-existing condition. Medicare notes this can apply in some cases when you switch, so check before you cancel your old one.
• You are unsure what to do. Your State Health Insurance Assistance Program, OSHIIP in Ohio, can review your options for free.

Before contacting anyone, gather your current policy documents, the increase notice, your premium history and your Medicare card. Write down the date and the name of each person you speak with.

Frequently Asked Questions

Why did my Medigap premium go up even though my coverage is the same?

Premiums rise with the cost of claims, with your age if your policy is attained-age rated, and with changes in the mix of people in the insurer’s pool. The coverage stays the same because Medigap plans are standardized.

Can my Medigap insurer cancel my policy if I use it a lot?

Generally no. Medigap policies are guaranteed renewable, so as long as you pay your premium, the insurer cannot cancel the policy based on your health or claims. It can raise rates for the whole group.

Can I switch to a cheaper Medigap policy without health questions?

Usually only in limited situations, such as your six-month open enrollment period or a guaranteed issue right. Some states, including Kentucky and Indiana, have birthday rules that allow switching without underwriting. Ohio does not, according to the National Association of Insurance Commissioners’ May 2026 state chart, so an Ohio switch generally involves health questions.

Is it worth changing from Plan G to Plan N to save money?

It can lower your monthly premium, but you take on more cost sharing when you use care. Consider both a quiet year and a hard year before deciding.

Who can I contact if I think a rate increase is unfair?

Your state insurance department regulates Medigap rates and handles consumer questions. Your State Health Insurance Assistance Program can also explain your options, and in Ohio that is OSHIIP.