Medicare Supplement Rate Increase?
You’re healthy. You exercise. You watch your diet. You don’t even visit the doctor all that often – “So why the rate increase?“. Death and Taxes? How about Death, Taxes, and Rate Increases?!
Loss Ratio – Predicting Increase
Every company will raise their rates at some point. They will not be able to stay in business if they don’t. When companies set their rates, they do so with a specific “loss ratio”. What this means is they try to predict what their claims will be for a given geographical area. If you live in a state that has many Metropolitan areas, there will be more claims, thus higher rate increases for that specific state. As your agent, we do our best to anticipate companies that are struggling with losses outside of the norm and to steer our clients away from those companies. We are a direct reflection of that insurance company and if they are raising rate aggressively, then that will affect a large portion of our clients across the country.
What’s an average rate increase?
Our clients often ask us, “What’s an average rate increase?“. This can be difficult to answer because your age has a lot to do with it, but we typically see anywhere from 4% to 10% year over year. This can be an emotional topic for any Medicare Supplement policy holder so it’s important to remember that regardless of what company you have, your rate will rise at some point. Keep in mind that this is the best coverage on the market for seniors and rarely does a rate increase warrant a cancellation of the entire Medicare Supplement product.
What are my options?
This is where we come in! If your rate increase has you concerned, give our office a call and we’ll see what other companies are offering rates in your area that might be able to save you money. We’ll take care of all the legwork and handle the underwriting. All we need is 30 minutes of your time and your signature. That’s it. We’ll make sure there is no interruption in your current coverage and no duplication of premiums. In many cases, your rate will still be competitive and a move will not be necessary.
We value your business and hope to serve you for many years to come.