Medigap Premiums on the Rise – What You Need to Know

Anderson Elder Law
Jul 7
3 min read

For those of us who have traditional Medicare with a supplemental Medigap policy, you may be seeing premium increases in 2025. The Pennsylvania Insurance Department approved Medigap rate adjustments statewide effective July 1, 2025. Whether you live in Philadelphia or Erie, your premiums for Plans G, N, or others may increase, some plans have seen double-digit hikes recently. Rising premiums affect your budget and may warrant a review of your current carrier and plan type.

If in fact you do see an increase in monthly premiums, it is likely that it will appear when your policy is due for renewal. This is typically the year anniversary of your policy. Note that Pennsylvania does not offer a state-level‑ birthday rule allowing annual plan switching without underwriting.

There are no restrictions as to when you can switch to a Medigap policy, and there is certainly nothing wrong with comparing rates between insurance companies. With that said, there are some significant factors to consider.

Many of you have probably heard of “Guaranteed Issue Rights.” Guaranteed issue rights for Medicare Supplement (Medigap) plans allow beneficiaries to purchase certain policies without being denied coverage or charged more due to pre-existing conditions. These rights, also known as Medigap protections, ensure that insurance companies must accept your application regardless of health status. Typically, you qualify for these rights during specific situations, such as when your coverage changes or you disenroll from a Medicare Advantage plan. Additionally, these rights allow you to enroll in a Medigap policy without health screenings during your Open Enrollment period, which lasts six months after you enroll in Medicare Part B.

If and when you decide to compare Medigap plans, do not be too hasty to make a change. Never drop your current plan until you are positive that you have been approved for a new plan. Approval will depend on your health status and possibly your eligibility for guaranteed issue rights. In addition, there are state-specific rules that may allow for easier switching. If you drop your Medigap policy, you might not be able to get it or any policy back later.

We encourage you to carefully weigh the cost difference and the impact it may or may not have on your lifestyle. Traditional Medicare continues to provide the most secure and widespread coverage versus the Medicare Advantage plans. By maintaining a Medigap policy in conjunction with traditional Medicare, the insured individual can feel well protected when it comes to healthcare costs.

Here is a quick review of the benefits of traditional Medicare:

Nationwide Access to Providers - You can see any doctor or specialist in the U.S. who accepts Medicare, no network restrictions. No referrals are required to see a specialist.
Predictable Coverage - Clear benefits defined by the federal government. Coverage is standardized, so it doesn’t vary from plan to plan.
No Network Restrictions - Unlike Medicare Advantage (Part C), which often uses provider networks (like HMOs or PPOs), Traditional Medicare lets you choose your providers freely.
Coverage of Medically Necessary Services - Part A covers hospital stays, skilled nursing facilities, hospice, and some home health care. Part B covers outpatient care, doctor visits, preventive services, and durable medical equipment.
Easy to Add Supplemental Coverage
Portable Across States - Coverage goes with you if you move or travel within the U.S.

To summarize, for those who have a Medigap plan you will see an increase in premiums in 2025. Carefully consider the impact of that increased monthly cost on your lifestyle. If you can manage the change and are pleased with the plan coverage, then “leave it be.” On the other hand, if the increase is difficult to manage financially, meet with a certified insurance broker to review your options. We also highly recommend that you access the PA MEDI/SHIP helpline offering free counseling. The key message is this: don’t make rash decisions when you receive a Medigap premium increase. Take time to think it through, seek trusted guidance, and don’t let anyone pressure you into acting too quickly.

Rising Medigap premiums can put a strain on your budget, but you have options. By understanding the reasons behind rate increases, planning ahead, and taking advantage of Pennsylvania’s resources, like SHIP counselors, trusted brokers, and guaranteed issue rules, you can make informed decisions that safeguard both your health and your finances.