The Starting Premium Is the Least Important Number
When you shop for a Medicare Supplement plan at 65, the first thing most people look at is the monthly premium. That's understandable — but it's also the wrong priority. The starting premium tells you almost nothing about what you'll pay at 72, 78, or 83. And those later years are when your coverage matters most.
There are two separate forces that drive Medigap rate increases. Understanding both of them — before you choose a carrier — is one of the most important things you can do for your long-term financial health.
Age-Based Rate Increases: The Predictable One
Most Medigap plans are “attained-age rated,” meaning your premium increases as you get older. This is expected and relatively transparent — carriers disclose their age rating methodology. If you buy at 65, your rate at 70 will be higher, and higher still at 75.
A small number of plans are “community-rated” — everyone pays the same regardless of age. These plans often cost more at 65 but may be cheaper long-term for people who live into their 80s. Florida has both types available. Ask your agent specifically which rating method applies to any plan you're considering.
Block Rate Increases: The One Nobody Mentions
This is the one that surprises people. Beyond age increases, Medigap carriers can also raise rates because the overall pool of policyholders in your “block” is generating more claims. This has nothing to do with your personal health. If the group you're in becomes more expensive to insure — because members are aging, getting sicker, or because healthier members have left for cheaper options — everyone in that block shares the increase.
When age increases and block increases stack together, 10–18% jumps in a single year are not unusual. Some Florida seniors have seen their Plan G premium double within eight years of their initial purchase — not because they became more expensive to insure, but because their carrier's block did.
The Carrier Matters More Than People Realize
Plan G is federally standardized. Every carrier's Plan G offers identical medical benefits. What is not identical is long-term rate behavior.
Some carriers price aggressively low at 65 to gain market share. That fast growth brings in a large pool of new enrollees. As that pool ages and claims rise, the carrier raises rates to restore profitability — and people who chose the cheapest starting premium are now stuck paying above-market rates.
Other carriers price more conservatively from the start and tend to show steadier, more predictable rate increases over time. Most buyers never look at five- or ten-year rate history. They look at today's price and assume all Plan G policies are the same product.
The Problem With Getting Medically Stuck
Here's what makes this especially dangerous: if your rates get uncomfortably high at 73, and you have heart disease or diabetes, you may not be able to switch carriers. Medigap carriers can use medical underwriting for anyone outside their open enrollment window — and they can deny you, or charge substantially higher rates, based on your health history.
That means the carrier you choose at 65 could be the one you're locked into for life. Choosing based on the cheapest starting premium without considering the carrier's rate history and stability is a gamble with your retirement budget.
What to Ask Before You Enroll
Before choosing a Medigap carrier, an independent agent should be able to provide:
- Rate history for the specific plan and carrier over the last 5–10 years
- The rating methodology (attained-age vs. community-rated)
- The carrier's AM Best financial strength rating
- The size and growth rate of the carrier's Medicare Supplement block in Florida
These questions are uncomfortable to ask a captive agent who only sells one company's products. An independent agent who works with multiple carriers has an incentive to give you an honest, comparative answer — because they can place you with whichever carrier best serves your long-term interests.
Rina Stuart has been placing Florida seniors with Medigap plans for 18 years. Call us and ask about rate history before you decide — it's a free conversation and it could save you thousands over the life of your policy.