If you’re a senior in 2025, you’re likely well aware of the sticker shock that often comes when purchasing everything from groceries to auto insurance. Unfortunately, your Medicare supplement rates are likely the next thing to take a hit. We’ve received a fair number of calls recently from clients who have been notified their rates are increasing. This jump in cost is not exclusive to your state, as a variety of companies in multiple states have been affected. Average rates nationwide have jumped 20%–40%, impacting millions of consumers. BUDGET BLOWBACK The Pandemic’s Price on Medicare
What Our Clients Think!
And, according to the insurance industry, the pandemic is to blame.
As insurers are starting to realize, COVID-19 changed their practices in two significant ways. First, most people elected to stay home during the era’s worst months, often delaying critical surgeries. Second, the lack of policyholders seeking medical attention
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during that time meant fewer expenditures by insurers, leading to record profits. However, the latter scenario didn’t last once COVID-19 concerns eased and people resumed pursuing surgeries. Unfortunately, people’s decisions to put off critical procedures often made their medical issues worse. For example, someone who put off knee surgery for 18 months now has to have knee and hip surgery because their condition escalated over time. Naturally, this meant a flood of costly claims are hitting insurers at once, causing a ripple effect that dramatically changed their loss ratios. If you’re wondering why insurers didn’t just dip into those aforementioned profits, industry analysts suggest that many companies simply didn’t retain this additional revenue when they had it. The current rate increase is one factor that makes the insurance market so challenging to understand and navigate, but we’re here to help. Please contact us if you have any questions about your particular increase or would like resources to help mitigate its financial impact.
—Tim Hanbury
MEDICAREBLUEPRINT.COM
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