Illinois-based insurance broker John Jaggi experienced an unprecedented situation when more than 80 of his clients faced a sudden 45% increase in their Medicare supplemental plan premiums from Chubb last August. This immediate hike, rather than the usual policy anniversary adjustment, was a first in Jaggi’s 49-year career. These supplemental plans, known as Medigap, cover costs not included in traditional Medicare, and without them, consumers could face unlimited annual expenses. While a 45% increase is rare, double-digit hikes are becoming common. Over 12 million people, or 43% of those with traditional Medicare, purchase Medigap policies, while 13% lack any supplemental coverage, risking high costs during serious illnesses. Recent filings show that major insurers like Aetna and Blue Cross Blue Shield are raising rates for Plan G policies by 12% to over 26% in early 2026. Premiums vary by coverage type, location, and age, with average monthly costs rising from $164 in 2023. In states like Ohio and Alaska, increases have jumped from 3-5% annually to 10-15% or more, reflecting insurers’ adjustments to claims pressures.
QUESTION: How might rising Medicare supplemental insurance premiums impact the financial stability of seniors relying on fixed incomes?
Medigap premiums leap, and consumers have few alternatives
