Insurance agents striving to stand out and compete in the crowded Medicare solutions market can utilize the latest data regarding Medigap rate increases.
The just-reported data revealed that year-over-year increases for policyholders with Medigap Plan G coverage in 2024 ranged to as much as 20%. The new analysis was reported by the American Association for Medicare Supplement Insurance (AAMSI) and KLC Actuarial, LLC.
“Competition in the Medicare market is intense with large call centers and marketing entities spending hundreds of millions annually on lead generation marketing,” explains Jesse Slome, director of the American Association for Medicare Supplement Insurance (AAMSI). “Independent insurance agents can compete effectively by positioning themselves as a local resource who has the client’s long-term financial interest at heart.”
That long-term interest should include explaining several little-known facts, Slome suggests. “First, that the low-priced Medigap offering or a plan from a name you recognize may be the best choice for a year or two, but not necessarily for the long-term. That means bringing up the subject of future rate increases, something someone looking for just a quick over-the-phone sale likely won’t mention.”
The Medigap rate increase analysis conducted for AAMSI by Ken Clark, KLC Actuarial found that half of all Medicare Supplement companies implemented double-digit rate increases. The study looked specifically at Medigap Plan G which is the most popular choice among seniors turning age 65 and selecting Medigap coverage.
The study looked at rate increases implemented between May 2023 and April 2024. Medigap insurers with one million or more members raised rates to as much as 18%. Insurers with 400,000 to 1,000,000 Medigap policyholders raised rates between 7.5% to 20.0%. Those with between 200,000 and 400,000 members, reported rate increases of between 7.5% and 12.0%.
“No one likes hearing they could pay more next year,” notes AAMSI’s Slome. “But insurance agents selling Medigap policies can use this fact to their advantage stressing their industry expertise and long-term commitment to the client. If you are facing competition, and today that’s almost assured, suggest your willingness to provide a company’s history of rate increases and see if your competition is willing to do likewise.”
The American Association for Medicare Supplement Insurance advocates for the importance of consumer awareness and supports insurance and financial professionals who market Medicare insurance solutions. The organization provides the leading national online directory used by seniors to find local Medicare insurance agents by Zip Code.
