Opening a letter that says your Medicare Supplement premium is going up is never fun — especially when nothing about your own health has changed. If you just got a rate increase notice, you are not alone: Medigap premiums rise for millions of policyholders every year. Here is why it happens, how the pricing works, and what you may be able to do about it.
Not affiliated with Medicare or any government agency.
Why Do Medicare Supplement Rates Go Up?
Insurance companies do not raise your rate because of anything you did. Rate increases are driven by broad factors that affect large groups of policyholders at once:
- Rising medical costs: Hospital stays, procedures, and doctor visits get more expensive over time. When the cost of care rises, the cost of the insurance that pays for it tends to follow.
- Claims experience: If a group of policyholders uses more medical care than the company expected, the company may raise rates for that group to keep up.
- Your age: Many Medigap plans use "attained-age" pricing, meaning your premium is based on your current age and steps up as you get older. We will explain the pricing types below.
- Inflation and operating costs: Like any business, insurers face rising administrative and regulatory costs.
How Medicare Supplement Pricing Works
Not all Medigap plans price their premiums the same way. There are three common rating methods, and knowing which one your plan uses helps you understand your bill:
Attained-age rated
Your premium is based on your current age and typically increases each year as you age. These plans often start with the lowest premiums at 65 but can become more expensive over time.
Issue-age rated
Your premium is based on the age you were when you bought the policy. It does not increase because you get older, though it can still increase due to inflation and claims costs.
Community rated
Everyone in the same area pays the same premium regardless of age. Premiums can still rise over time, but not because of your birthday.
Your rate notice or policy documents should tell you which method your plan uses. If you are not sure, a licensed insurance producer can help you read it.
A Real-World Example: Maine, October 2026
Rate increases are not abstract. According to the Maine Bureau of Insurance’s official rate chart, United of Omaha’s Medicare Supplement rates in Maine are rising about 20% on Plans G and F effective October 1, 2026 — with Plan G moving from roughly $3,019 to $3,623 per year, and Plan F from about $4,053 to $4,864 per year. Other plan letters are seeing smaller increases (Plan N around 8%, and the high-deductible Plan G around 8.1%).
That is a meaningful jump for a household budget, and it is a good reminder that Medigap premiums are not fixed for life. The same letter plan from a different company may be priced very differently — because while plan benefits are standardized by letter, premiums are set by each company.
What You Can Do About a Rate Increase
A rate increase notice is a good prompt to review your coverage — not a reason to panic. Here are steps worth considering:
1. Compare the same plan letter from other companies
Because benefits are standardized, a Plan G is a Plan G. If your company’s Plan G just got expensive, another company’s Plan G may offer the same coverage for less. This is one of the most common reasons people shop their Medigap plan.
2. Check whether underwriting applies in your state
In many states, switching Medigap plans outside of special protections means answering health questions, and a company can turn you down or charge more based on your health. But some states have special rules. Maine, for example, allows beneficiaries to switch to a Medigap plan of the same or lesser benefits at any time of year without medical underwriting (as long as there has been no coverage gap longer than 90 days). Rules vary by state, so check what applies where you live — in Oregon, Arizona, Florida, Texas, Indiana, Illinois, Kentucky, or elsewhere.
3. Review whether your plan letter still fits
Some people carry a richer plan than they need. Depending on your health and budget, a different plan letter might offer a better balance of premium and coverage. A licensed producer can model the tradeoffs with real numbers.
4. Do not cancel before the new plan starts
If you do decide to switch, keep your current coverage in force until the new policy is approved and active. A gap in coverage can cause problems, including losing protections you might otherwise have.
The Bottom Line
Medicare Supplement rate increases are normal — driven by medical costs, claims, and pricing methods, not by anything you did wrong. But "normal" does not mean you have to accept the new price without question. Shopping the same plan letter, understanding your state’s switching rules, and getting a second set of eyes on your options can make a real difference over the years.
Just got a rate increase notice? Call DT Senior Insurance at 1-877-752-1350 or fill out the lead form, and a licensed insurance producer will help you compare your current plan against other options available in your state.
Related reading
- Your Medicare Supplement Rate Went Up? | DT Senior Insurance
- When Can You Switch Medicare Supplement Plans?
- Medicare Supplement vs. Medicare Advantage: What’s the Difference?
Not affiliated with Medicare or any government agency.
Insurance solicitation from DT Senior Insurance. A licensed insurance producer will contact you.