How To Research Medigap Insurance, The Right Way!

If you are currently researching Medicare Supplement (also known as Medigap) insurance, I want to highlight four key areas that most consumers obsess about – areas that almost produce no value in the end result when they finally pick a plan.

• Closed blocks of business (how they work and how to understand them)
• Trying to predict rate increases
• Understanding or ignoring underwriting risks
• Getting stuck in a plan you can’t change

These are the most common topics that we’re asked about – and that we have found that most people are discussing on Reddit when they’re out there researching Medigap companies, trying to make sure that they do their research before enrolling in a Medigap plan.

My name is Mark Prip, and I’ve been helping people for over 15 years understand how Medicare works and helping them pick a plan to enroll in. Let’s get started.

#1. Closed Blocks of Business

One of the biggest wastes of time is when people call and ask:

“I want to pick a Medigap company that does not close blocks of business.”

This is something that people are obsessed with. In reality, you will never find a company that does not close a particular block of business and open a new one. This is just the way the Medicare Supplement market operates.

It is very common for a company to promote Medicare Supplement plans under a certain name, in certain states, at a certain price point. They gain a large amount of enrollment, then they close that block of business and open a new one at a different price point.

Everything you read online comes back to:

“I don’t want to enroll in a company that frequently closes its blocks of business, and then my premiums skyrocket.”

You can do all the research you want – you cannot avoid this. This is how the industry is structured. It’s built this way to maintain competitiveness in an existing block and remain competitive for new enrollees. You can call that greed, you can call that unfair, but it’s just the way that it works.

Stop researching and trying to figure out which insurance company does not close its block of business and raise premiums. It does not exist.

If it’s that important to you, you can look into some Blue Cross Blue Shield plans. They are one of the few companies that typically do not operate this way. I’ll use Florida as an example. Florida Blue has a block of Medicare Supplement business that has been open for many, many years.

Like other Blue Cross Association companies, they operate in their own individual state. Yes, you still get nationwide coverage with Medicare Supplement, but enrollment is limited to residents of that state. Because of this, you don’t usually see closed blocks of business for smaller, state-based, or regional companies.

So you might think, “Okay, great – I’ll just go with Blue Cross.”

Here’s the problem. Because they don’t use this strategy, their premiums are usually more expensive at the starting rate than those of other carriers. For example, Florida Blue might have a Plan G premium of around $250 per month, while a company like Cigna might come in around $190 per month.

Cigna may use the closed block strategy, but Florida Blue typically will not. So yes, you can get in at a lower starting rate with a company like Cigna, but because they started that low, they will gather claims data and adjust pricing over time. That lower rate will not stay that low forever.

My advice on closed blocks of business is simple: you will not find a way around it.

The average individual, including myself, does not know how to predict an insurance company’s claims-to-premium ratio. That information is not public, and nobody can accurately forecast it. So instead of trying to solve something that cannot be solved, focus on what you can control.

Find a reputable carrier that has been in the Medicare Supplement market for more than five years. I emphasize five years because in 2024 and 2025, we saw companies like ACE and Allstate enter the market with extremely competitive rates – significantly lower than everyone else.

Then, in 2025, they announced they were closing their block of business to new members completely. They came in underpriced, gained enrollment, and now the claims coming in are higher than the premiums being collected. That low price point backfired – and that’s exactly what happens with newer, smaller companies that cannot sustain long-term risk.

Instead, focus on companies that have been in the industry for five or more years. Focus on longevity. Find the most affordable premium. Compare Plan G, Plan N, and High Deductible Plan G. Then, pick a plan and move forward.

Let go of the closed block of business conversation – it will relieve stress and eliminate something that you simply don’t need to think about.

#2. Predicting Rate Increases

Coming in at number two on the list is trying to predict which company is going to have the lowest rate increases. Again, that is an element that is tied directly to the closed blocks of business. You will never figure that out. You will never know.

We used to be able to say historical data shows us that over the last five years, the average rate increase was 5 to 6%. That’s great. That’s looking at historical trends that we could predict what the future would hold.

Well, guess what? In 2024 and 2025, particularly mid-year of ’25, we started seeing rate increases of 25% all the way up to 45% from companies like Mutual of Omaha, Cigna, Aetna, and United Healthcare. Nobody saw that coming.

So you cannot try to find a company with a predictable rate increase. You won’t do it. You are wasting your time.

Where you’re going to feel the most pain on a rate increase is with smaller companies that have a smaller risk pool. They are most likely going to have higher rate increases.

Companies like United Healthcare, which have the highest membership enrollment in the country, are the number one insurer of Medicare Supplement plans, followed by Mutual of Omaha, and most of the Blue Crosses combined. Those larger companies that have been around for many years tend to have lower rate increases.

The problem is, the initial rate with those companies is always higher than some of the smaller companies, like Cigna, also known as HealthSpring now, or Aetna or Mutual of Omaha. So you start low, but because you may have gotten with a reputable company with a smaller block, the rates go up.

A lot of this has to do with the massive influx of baby boomers coming into the system. Medicare Supplements are still very rich in benefits and are priced very low. I assume that these companies are still working off old claims data and historical trends.

Now all of these people are coming on Medicare and flooding the market. They don’t know what’s going to happen with claims. They don’t know how much risk all of these new people are bringing into the pool. That’s why you won’t ever understand the closed block of business or the rate increases, because in order to understand that, you would have to know what kind of people you are in a risk pool with.

Let’s say you’re in a risk pool of 250,000 people. No one knows what 250,000 individuals’ health issues are, so you’ll never figure that out.

So again, like my first point on the closed block of business and rate increases, stick with a company that has been around for longer than five years – Mutual of Omaha, HealthSpring, Aetna, United Healthcare, and some of the Blue Crosses of different states.

If you have not heard of the company before, or if they are new to the market with low rates, avoid them. Just don’t deal with these no-name companies. Don’t obsess about rate increases because you’ll never know. No one predicted 25% to 40% rate increases in 2025.

Now, I personally think that will start to trend down as things settle and as rates are adjusted and companies can assess the risk better. I don’t think that’s the future of Medicare Supplement. I definitely don’t think 25% and 40% is the norm, but we’re optimistic that that will start to come back down to pre-’25 rate increases.

#3. Ignoring Underwriting Risks

For number three on my list, it’s understanding the Medigap underwriting process. And most people fall into what I call the Medicare Advantage trap.

What this means is:

Let’s say you get on Medicare A and B, and you’re all excited.

You’ve worked your whole life, you’ve paid your taxes, you’ve now got Original Medicare A and B, and boy, this Medicare Advantage plan that has no monthly premium from Humana looks really attractive.

You don’t have to pay anything per month. Your copay for the primary doctor is zero. A specialist is $40. They’re going to give you over-the-counter benefits, free rides to the doctor, free groceries, free dental.

It’s amazing. This plan is amazing. It’s offering so much at no cost.

How do you say no to this?

Here’s the problem. When you’re first eligible for Medicare, you have your initial Open Enrollment Period. That means when you get on Medicare for the first time, no company can ask you health questions if you apply for a Medicare Supplement plan. It’s your guaranteed issue right when you’re brand new to Medicare.

This period is three months before your 65th birthday, the month of your birthday, and three months after. So that makes up a total of seven months.

You also have a 12-month Medicare Advantage trial right. That means if the very first time you get on a Medicare Advantage plan, and you’re unhappy with it, anytime in that 12-month window, you can return to Original Medicare. However, most people don’t understand their initial enrollment period, let alone this 12-month Medicare Advantage trial period.

So what I usually refer to for simplicity is the 12-month rule. Most people get on a Medicare Advantage plan, and they don’t realize that if they don’t make a change before that 12-month trial period, medical underwriting comes into the picture.

And a lot of people are shocked when they’re told, “I’m sorry, I would really like to help you enroll in this Medicare Supplement Plan G, but you cannot pass medical underwriting.”

So that initial open enrollment opportunity is kind of a golden ticket to get onto a Medigap plan. The key here is that knowledge is power. Educate yourself. Know what you’re up against when you’re out there.

Now, there is one caveat to this rule, and that is that certain states have different underwriting regulations. You might live in a state where you have a birthday rule, which allows you to change plans around your birthday, or a state that has year-round guaranteed issue rights, like the state of New York.

Instead of me going through every state with all of those rules and regulations, I highly recommend that you understand what your state rules are. If you were to start on a Medicare Advantage plan and pass that 12-month trial right, what are your state rules that would allow you to move to a Medigap plan? Or are you in a state where underwriting would be required?

So definitely look into that. Very, very important. Because that’s probably the biggest topic that people are blindsided by. They could afford Medigap from day one –  but they were initially attracted to the no monthly premium Advantage plan.

Once they got on it and experienced it, maybe they no longer like it, or it doesn’t work anymore. Maybe their doctor left the network, and they want off of it. Maybe they don’t want prior authorizations anymore. Or maybe they just want that freedom of Medigap, and they could be turned down.

Be sure you figure out that information before you enroll to make an educated decision.

#4. Getting Stuck in a Plan

The real danger is getting stuck in a plan that you don’t understand or that you can’t change. And when I say “can’t change,” I’m typically referring to a Medicare Advantage plan that you’re now locked into – and due to medical circumstances, you can’t get out of it and move over to a Medigap plan.

This is where things can become a real problem for people. On the front end, Medicare Advantage can look extremely appealing. Low or even $0 premiums, extra benefits, and a lot of added perks. But what most people don’t fully understand is how limited their flexibility can become later on.

Because once you’re outside of your initial enrollment window or your trial right period, switching from Medicare Advantage to a Medicare Supplement plan usually requires medical underwriting. And if your health has changed – which, let’s be honest, is exactly why most people want to switch – you may not qualify.

That’s where people feel stuck. They’re in a plan that may no longer fit their needs. Maybe their doctor left the network. Maybe they’re dealing with prior authorizations. Maybe they’re just tired of the restrictions. They want the freedom that comes with a Medigap plan – but now they can’t get it.

That’s the risk. It’s not just about picking a plan that looks good today – it’s about understanding what your options look like later.

Final Thoughts

I hope this information helps. The goal here is not to overwhelm you, but to simplify the process. Do not become obsessed with the things you cannot control. Focus on the things you can control.

You can control the type of plan you start with. You can control the companies you consider. Remember, look for companies that have been in the market for over five years. Try to find the most competitive premium. Don’t focus on closed blocks – it won’t help you. Don’t focus on predicting rate increases – it won’t help you either.

Instead, focus on making a decision that gives you flexibility and confidence moving forward. Because once you understand these factors, you’re going to feel a lot more confident when you actually make your choice.

A lot of agents and brokers will focus on selling the upfront features of a plan – the benefits, the extras, the things that sound good right now. But the reality is, you don’t truly understand how a plan works until you’re on it and using it.

If you have questions, give us a call. We’d be happy to walk you through a needs analysis, explain your options, and point you in the right direction.

That’s the goal – helping you make a decision you feel confident about, not just today, but long-term.