How to Compare Medicare Supplement Insurance Companies
When comparing Medicare Supplement companies, don’t compare benefits first—compare the same standardized plan across insurers.
Why Do Medicare Supplement Rates Increase?
Last Modified: 10/05/2026 | Reviewed by Keith Armbrecht (NPN 634015)
Quick Summary
Medicare Supplement premiums can increase over time because of several factors, including inflation, rising healthcare costs, claims experience, the insurance company’s pricing method and—in attained-age-rated policies—your increasing age.
A rate increase doesn’t change the standardized medical benefits of your Medigap plan.
It changes what the insurance company charges for the coverage.
If your premium increases substantially, you may want to compare other companies—but your ability to switch can depend on underwriting and state law.
Key Facts
- Medigap premiums aren’t guaranteed to stay the same.
- Medicare says premium amounts typically increase each year.
- Inflation can contribute to increases.
- Healthcare costs can affect premiums.
- Claims experience can affect insurer pricing.
- Rating method matters.
- Attained-age policies can rise as you age.
- Community-rated policies aren’t priced based on your age but can still increase for other reasons.
- Issue-age policies don’t increase merely because you age but can rise for other factors.
- Standardized benefits don’t change because the premium increases.
- Changing companies may require medical underwriting.
- State rules can provide additional switching rights.
Three Medigap Pricing Methods
Community-Rated
Everyone in the applicable rating class generally pays the same base premium regardless of age.
Your premium doesn’t increase simply because you get older.
But it can still increase because of inflation and other factors.
Issue-Age-Rated
Your age when you first buy the policy affects the premium.
The premium doesn’t increase simply because you age.
But it can still rise for inflation and other reasons.
Attained-Age-Rated
Your premium is based on your current age.
It can therefore increase as you get older, in addition to other rate changes.
Why Can Rates Rise Even If You Haven’t Used the Insurance?
Insurance isn’t priced solely on your individual claims.
A company can seek rate changes based on broader factors affecting the policy block, subject to applicable state regulation.
So you might be perfectly healthy and still receive a premium increase.
Does a Rate Increase Mean Your Benefits Improved?
No.
If you have standardized Plan G, it remains Plan G.
A premium increase doesn’t give you additional standardized medical benefits.
Should You Switch Companies After a Rate Increase?
Maybe.
If your premium rises substantially, compare other companies selling the same plan letter.
But don’t cancel your current policy first.
Outside protected enrollment situations, a new company may use medical underwriting depending on your state.
Example
Suppose your Plan G premium increases from:
$160 to $195 per month
That’s an additional:
$35 per month
or
$420 per year
If another insurer offers the same standardized Plan G benefits at a significantly lower premium and you qualify to switch, changing companies may be worth considering.
Video Explanation from Keith
Why Did My Medicare Supplement Rate Go Up?
Keith's Take
I tell clients to expect Medicare Supplement premiums to change over time.
The question isn’t:
“Will my rate ever increase?”
The better question is:
“Is my rate still competitive?”
If you receive a 5% increase but you’re still paying one of the better rates in your market, changing may accomplish nothing.
If your premium has become $40 or $50 per month higher than comparable coverage, that’s different.
Then I want to shop the market—if your health and state rules allow you to change.
Don’t chase every small rate increase.
But don’t blindly overpay either.
Keith Armbrecht
Medicare on Video
Frequently Asked Questions About Medigap Rate Increases
Q. Can my Medicare Supplement premium increase?
A. Yes.
Q. Why did my rate increase if I didn't use the plan?
A. Premiums aren't based solely on your individual claims.
Q. Can my age cause the increase?
A. It can with attained-age-rated policies.
Q. Can a community-rated policy increase?
A. Yes, because of inflation and other factors even though the premium isn't based on your age.
Q. Can an issue-age policy increase?
A. Yes, for reasons other than simply getting older.
Q. Does a higher premium mean better benefits?
A. No.
Q. Are Plan G benefits still standardized after a rate increase?
A. Yes.
Q. Can I change companies?
A. Potentially, but medical underwriting may apply outside protected situations.
Q. Should I cancel my current policy before applying elsewhere?
A. No. Make sure replacement coverage is approved before canceling your existing Medigap policy.
Official Government Sources
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