How Much do Medigap Rates Increase Wisconsin?
Wisconsin Medicare Supplement Plan Rate Increases: Unfortunately like everything else, the rates for your Wisconsin Medicare supplement plan will not stay the same.
To understand more of why and how your Medigap plan pricing will increase, keep reading, to see if you can lower your WI Medicare supplement cost call us today for a free no obligation rate quote. 920-545-4884
How Much do Medigap Rates Go Up in Wisconsin?
Wisconsin residents are typically aware that their choices in Medicare Supplements (Medigap) are a little different from other states in the U.S. We still get very good coverage since the plans must contain specific coverage in order to be sold within our borders.
Similar to other health insurance policies, Medigap policies are not static once they are issued. In fact, most policyholders should anticipate premium changes from time to time.
Although the state controls the types of plans that can be sold within its borders, the insurance companies control the premiums they charge and the level of service they provide. Rates and service will typically be the main difference from one company to the next.
Any rate changes will typically be announced prior to the anniversary of your renewal, so instead of getting a “Thank You” note from your company, you’ll likely get a “Notice of Rate Increase” letter instead.
Why do WI Medicare Supplement Rates Go Up?
Wisconsin Medicare Supplement (Medigap) rates may go up for a variety of reasons depending on the rating method your company uses. Currently, there are three different methods that insurance companies employ to establish their rates.
No matter which method your plan is based on, the rates can be changed by the company because of various events in the healthcare industry. Here are the three rating methods a Medicare supplement company can use to establish your rates:
WI Medicare Supplement Pricing Methods
Attained Age Rating – Using this rating method, the insurer will set your rates based on your age when you originated the insurance policy or the age you attained coverage.
With this rating method, your policy will go up as you get older. The change will always take place at the policy’s anniversary (your renewal date).
In most cases, aging increases or minimal but over time they will become substantial when you compare your rate at the time of purchase to your rate 5, 10, or 15 years down the road.
Your insurer can also increase your rates because of inflation or their claims experience in the marketplace but not because of your individual claims.
Community Rating Method - With the community rating method, age is not a factor when prices are established. Instead, the pricing is set based on the type of plan being purchased and everyone purchasing that particular plan will be charged the same amount of premium for their policy.
To be clear, the insurance company will charge the same for a 65-year- old as they would for a 75-year-old as long as both persons selected the same plan. To be clear, even with the community rating method, rates can change if the company’s costs go up because of inflation, claims experience, or rising healthcare costs.
Issue Age Rating - With issue-age rating method, the insurance company will rate your policy based on your age at the time of issue and your premiums will not increase based on your age.
The company can and will increase your rates based on other factors like inflation, rising health care costs, and claims experience. The amount of these types of increases are unknown and can be a little high.
On its face, the issue-age rating method appears to be the most economical way of purchasing a Medicare Supplement plan, but it normally doesn't end up that way a few years down the road.
You Always Have Options
Knowing that your insurance rates are not etched in stone and that price increases are inevitable, we want you to know that you have options if your Medicare Supplement rates get out-of-hand or become unaffordable. Most seniors today are living on a fixed income and when their cost of healthcare gets out of hand they can simply go shopping.
Shopping for a Medicare Supplement plan has never been easier since the government requires the insurance companies to offer the same plans. Only the price is different which means an insurance broker can easily run a price comparison to determine if they can offer a better deal.
The only drawback to changing your Medicare Supplement insurance in Wisconsin is that your health status will be taken into consideration if and when you make a change.
When’s the Best Time to Change my Wisconsin Medigap Plan?
If you are currently in a Medicare Supplement plan that you bought during your OEP (open enrollment period), the insurance company did not require medical underwriting because you had a guaranteed issue right for that purchase.
If you become disappointed with your rates or service and are adamant about changing your company or plan, the insurance company will use medical underwriting which means your rates could be increased or your application denied because of your current health status.
There are, however, certain occasions when a guaranteed issue right could still apply when you change your Medigap plan, below are just a few:
- If you have a Medicare Advantage plan (not Medigap plan) and your insurance company will no longer be servicing the where you live.
- If you have a Medicare Advantage plan and you decide to move to an area that your company doesn’t service.
- You are losing your Medicare Supplement or Medicare Advantage coverage because your insurance company has failed and are going bankrupt.
- Your Medigap insurance company is guilty of misleading you or not complying with the rules established by Medicare.
How can I Change my WI Medicare Supplement Insurance?
Unless you have a history dealing with Medicare and Medicare Supplements, navigating the marketplace can be stressful and confusing.
The good news is that there are Medicare professionals who represent almost every company and plan available. The better news is that these professionals do not work for the insurance companies they represent but actually work for the clients and prospective clients they represent.
The insurance professionals on The Medicare Solutions Team are in Wisconsin, experienced and reputable and you can contact us anytime by calling (920) 545-4884 during normal business hours or contact us through our website at your convenience.