Large Medigap Rate Increases - What Changed?
Many Medicare Supplement policyholders received unusually large premium increases in 2025 and 2026, including double-digit increases far higher than what they'd seen in previous years.
We help Medicare beneficiaries compare Medigap plans every day, and the increases that used to be small and predictable rarely are anymore.
This guide explains why it's happening, why your increase may be bigger than someone else's, and what you can realistically do after a large renewal notice.
Quick Answer
Why are Medigap premiums going up so much? Mainly because claims are rising faster than insurers expected: more people using more care, higher medical and labor costs, aging policyholder groups, and some companies correcting prices that started out too low.
What should you do? Read your notice carefully, compare the same plan with other insurers, and look at lower-premium Medigap plans. If you want to switch, get approved for the new policy before you cancel the old one.
In This Article
What Changed With Medigap Rate Increases?
For years, most Medigap policyholders could expect modest annual increases, often in the low-to-mid single digits.
That pattern has broken. In early 2026 rate filings from six major insurers, Plan G increases ranged from just over 12% to more than 26%, according to Telos Actuarial, as reported by KFF Health News.
That same reporting documented one Illinois broker whose clients on a single Chubb plan received a 45% increase. That was an outlier, but it shows how large some adjustments have become.
12%–26%+
Plan G increases in early 2026 filings from six large insurers (Telos Actuarial)
12M+
People with a Medigap policy, about 4 in 10 in Original Medicare (KFF)
45%
One documented outlier increase on a single plan (KFF Health News)
These figures come from a limited set of filings and states, so your own increase may be higher or lower.
The bigger point is the direction. Double-digit increases are no longer unusual, and many analysts expect more pressure ahead.
What I'm Seeing in Our Office
The calls we get have changed. A few years ago, most renewal-notice questions were about $5 to $10 a month.
Now it's common for clients to call about increases of $30 to $50 a month, and many tell us it's the largest jump they've had since enrolling.
Why Are Medigap Premiums Increasing?
Medigap premiums are built around claims. When the money an insurer pays out grows faster than it planned, premiums follow.
Several pressures are hitting at the same time:
- More people using more care: insurers report higher use of medical services, which drives up claims.
- Higher medical and labor costs: hospitals and doctors cost more to run, and Medicare's own deductibles and coinsurance rise each year. Medigap covers much of that cost-sharing.
- Aging policyholder groups: as a group of policyholders gets older, average claims usually rise.
- Pricing corrections: companies that priced too low earlier now have to catch up.
Those are the main drivers. Two other factors may also play a role, though their effect is less certain and varies by market.
When Medicare Advantage plans leave a market, some affected members may qualify for Medigap without health questions. And some states let people switch Medigap plans without underwriting.
Some experts believe both can add pricing pressure, because insurers must accept applicants whose health they can't evaluate. How much they've contributed to recent increases isn't clear.
The Low-Price Cycle Most Consumers Never See
Every insurer that sells Medigap has to predict future claims when it sets prices.
When a company enters a market with prices well below its competitors, it can grow quickly. If claims then come in higher than expected, the company usually has to raise premiums more sharply to catch up.
The typical cycle looks like this:
- A company launches with very competitive premiums.
- Enrollment grows quickly because it quotes lowest.
- Claims come in higher than the original pricing assumed.
- Larger rate increases follow to correct the gap.
Not every low-priced insurer follows this pattern, and a higher starting premium doesn't guarantee smaller increases later. But it's why the cheapest plan today isn't always the cheapest plan three years from now. In the KFF Health News example above, the plan with the 45% increase had previously been the lowest-cost option.
We cover the longer-term side of this, including what happens when a company stops selling a plan, in our guide to why Medigap companies close blocks of business.
Why Two People With the Same Plan Get Different Increases
One of the most common questions we hear is, "My neighbor has Plan G too. Why did my rate go up more?"
Several things can explain it:
| Factor | How it affects your increase |
|---|---|
| Insurance company | Each company files its own rates based on its own claims experience. |
| Rating method | Attained-age policies also rise as you get older, on top of any general increase. Issue-age and community-rated policies don't add that age step. |
| Location | Rates are filed by state and often vary by ZIP code or region. |
| Policy group | Older groups, or plans no longer sold to new members, may see larger increases. |
| Discounts | Some introductory or household discounts shrink or phase out over time. |
| Timing | Some insurers apply increases on your policy anniversary; others use a set date for everyone. |
The takeaway is that your increase may actually be two or three changes combined. A general rate increase, an age step, and a shrinking discount can all show up on the same notice.
If you're not sure how your policy is priced, our guide to attained-age vs. issue-age Medigap plans explains the difference.
Does a Higher Premium Mean Better Coverage?
No. A rate increase doesn't change your benefits.
Medigap plans are standardized by letter in most states. A Plan G from one company covers the same Medicare cost-sharing as a Plan G from another company.
Massachusetts, Minnesota, and Wisconsin use their own standardized plan designs, so the letter comparisons work differently there.
Where companies do differ is price, rate history, discounts, and customer service. That's why comparing the same plan letter across companies is often the simplest way to save without changing your coverage.
What to Do After a Large Rate Increase
Here's a simple example. If you pay $180 a month and receive a 20% increase, your new premium is $216.
That's $36 more each month, or $432 more per year.
Before you decide anything, work through these steps:
- Read the notice closely. Check the effective date, new premium, and whether the change includes an age-based increase or a discount change.
- Compare the same plan with other companies. Look at today's price and how each company has raised rates in the past. Past increases are useful context, but they can't guarantee how a company will price in future years.
- Look at lower-premium Medigap plans. Plan N or High-Deductible Plan G can lower your monthly cost while keeping Original Medicare.
- Check your state's switching rules. This decides whether you'll need to answer health questions.
- Don't cancel your current policy first. Keep it until a new policy is approved and in force.
On the plan options: Plan N usually costs less than Plan G in exchange for some copays and no coverage for Part B excess charges. See our Plan G vs. Plan N comparison for the details.
High-Deductible Plan G has a much lower premium, but you pay Medicare-covered costs up to a yearly deductible first. For 2027, that deductible is $3,050.
Original Medicare still pays its share from day one. The deductible only affects who pays the remaining cost-sharing. Our High-Deductible Plan G guide walks through the math.
What About Medicare Advantage?
A $0-premium Medicare Advantage plan can look appealing after a big increase. For some people, it's a reasonable choice.
But the tradeoffs are real: provider networks, prior authorization for some services, benefits that can change each year, and out-of-pocket costs when you need care.
The most important warning is about coming back. If you leave Medigap, you may not be able to buy a Medigap policy again later without passing medical underwriting.
There are limited exceptions, such as a trial right if you're trying Medicare Advantage for the first time, but they come with deadlines.
My Take
When clients call about a large increase, I generally recommend comparing other Medigap options before giving up their existing coverage.
Once someone leaves Medigap, getting that protection back may require medical underwriting. Medicare Advantage can still make sense, but go in knowing that. Our Medicare Advantage vs. Medicare Supplement guide covers the full comparison.
Can You Switch to Another Medigap Company?
You can usually apply. Unlike Medicare Advantage and Part D, Medigap applications generally aren't limited to the fall Annual Enrollment Period.
Applying doesn't guarantee acceptance, though. In most states, once your Medigap Open Enrollment Period ends, a new insurer can review your health history.
Outside a guaranteed-issue opportunity, the company can approve you at its standard rate, charge more in some cases, or decline your application.
Several states offer extra chances to change Medigap policies without medical underwriting, including birthday rules, anniversary rules, and other guaranteed-issue protections.
The details vary a lot from state to state, including timing, which plans you can move to, and who qualifies. Our guide to Medigap guaranteed issue rights explains when you can switch without health questions.
One step that protects you: When you replace a Medigap policy, you generally get a 30-day free-look period on the new one.
Many people pay both premiums for one month so they're never without coverage while confirming the new policy is right.
Frequently Asked Questions
Can my insurer raise my rate because I got sick?
Generally, no. Medigap rate increases are filed for groups of policyholders, not set for one person based on their own claims.
Your individual health matters mainly when you apply for a new policy with medical underwriting.
Is a big rate increase a sign my company is in trouble?
Not necessarily. Many large, stable companies have filed double-digit increases recently.
A large increase usually means claims came in higher than the company priced for. It's a reason to compare, not a reason to panic.
Will Medigap premiums keep going up?
Premiums almost always rise over time, and the pressures behind recent increases haven't gone away.
No one can predict your exact future increases. A company's rate history is useful context when you compare, but it isn't a guarantee.
Can I negotiate my Medigap premium?
No. Insurers use rates filed with your state and generally can't negotiate individual premiums.
Your final premium can still differ from someone else's because of discounts and other approved rating factors.
Your options are to compare other companies, change plans, or confirm you're getting any discounts you qualify for.
Bottom Line
Large Medigap increases are being driven by rising claims, higher medical costs, aging policyholder groups, and some companies correcting prices that started too low.
A higher premium doesn't buy better coverage, so it's worth checking what the same plan costs elsewhere.
If you're healthy, or you live in a state with switching protections, shop the same plan first, then look at Plan N or High-Deductible Plan G if you need a bigger cut.
If health conditions could make approval difficult, don't cancel anything until a new policy is approved. In some cases, keeping your current policy may be the safest choice.
If you'd like a second opinion on your renewal notice, call us at 888-414-4547 or compare rates in your ZIP code.
