Rate increases of 10% or higher. They can be avoided.
The Medicare supplement industry has traditionally seen rate increases trending around 3%-8% annually.
However, as these new Medicare laws took effect in 2020, some consumers with a current Medicare Plan F are seeing annual rate increases of 10% or higher.
Medicare supplement "Plan F" has two compounding factors driving prices up and driving more people out of the risk pool.
Since there won't be any younger, 65 year-old members joining Plan F, the entire risk pool grows both older and smaller every day.
Older people need more medical services. More services mean higher insurance rates for everyone in that risk pool. And the decreasing group size means that prices go up for those who remain in the risk pool.
Medicare Supplement "Plan F" represented 55% of the total Medicare Supplement insurance market in 2017. This has continuously dropped to just 45% In 2020.
Eventually, Plan F will represent 0% of the market, and that process is happening now.
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