Can Medicare Supplement Rates Increase Mid-Year? The Hidden Reasons Your Premium Jumps

Medicare Supplement rates can increase mid-year for two key reasons—and many seniors don’t see it coming. Here’s what triggers those unexpected jumps and how you can stay ahead of your next premium increase.

Why Your Medicare Supplement Premium Can Increase Twice a Year

Knowing when your Medigap premium might change helps you plan your budget, but many people are still surprised when their rate goes up more than once a year. In reality, your rate hike comes from two entirely different forces: one tied to your age, and another driven by state-approved rate adjustments that affect all policyholders.

The first is predictable — most attained-age plans raise your premium as you get older, often around your birthday. The second is the official, company-wide rate adjustment. This is usually called a “Rate Action” in insurance industry jargon and it happens when your insurance company requests a rate increase from your state’s insurance commissioner to offset the rising costs of medical care and inflation across the board. If approved, it affects all policyholders in your plan.

💡 Medigap prices will not increase base on individual usage. Your Medigap plan cannot increase your price should you have lots of claims.

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Reason #1: Age-Based Rate Adjustments (The Birthday Factor)

This is the most common reason your premium might rise mid-year. If your plan uses attained-age pricing, your rate increases as you age. And yes, that price bump often shows up right around your birthday.

Let’s say you turn 72 in June—your premium could go up that month, even if you already saw a rate hike in January. That’s because attained-age pricing adjusts with your age. It’s the most common method nationwide, but not the only one. Some plans use issue-age or community-rated pricing, and each works differently depending on your state and insurer.

How to Know If Your Plan is Attained-Age

Not sure how your plan is priced? Just check your Medigap Outline of Coverage or policy documents—they’ll tell you how your premium is rated.

• If your documents say something like “premiums increase with age”, you’re on an attained-age plan. This is the most common type today. These plans start out cheaper when you’re younger, but the cost rises every year—especially around your birthday. If your premium jumped on your birthday, chances are you’re on an attained-age plan.
• If your paperwork says your rate was locked in when you first applied, that’s an issue-age plan. Your premium is based on your age at the time you purchased the policy, which makes it more predictable. Them usually start at a higher premium than Attained-Age plans and still go up each year with rate actions rather than based on age.
• If your plan says everyone in your area pays the same rate—no matter their age—it’s community-rated. These plans tend to cost more upfront, but they don’t increase just because you’re getting older. Community-rated plans also typically increase each year due to rate actions or disappearing discounts.

💡 Tip: If your Medigap premium keeps rising, you may want to shop around and compare prices. Some states have a Medigap Birthday Rule that lets you to switch to a lower-cost Medicare Supplement plan without Medical Underwriting.

Reason #2: Company-Wide Rate Actions Approved by the State

The second kind of increase hits everyone in the same plan—no matter their age. It’s called a Rate Action, and it’s triggered when your insurance company raises prices across the board.

These hikes usually happen when an insurer’s costs go up—think inflation, rising medical expenses, or higher claims. To raise rates, the company has to file a formal request with your state’s insurance department. Most companies announce these rate actions in advance, often by mail or email. If you get a notice, it’s worth reviewing your options before the new rate kicks in.

These company-wide increases are reviewed by your state’s insurance department. Insurers must prove that costs like medical claims or inflation have gone up. The commissioner can approve, reduce, or deny the request—but as long as it’s justified, it’s usually approved to keep the company stable.

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💡 Tip: Some Medigap insurance carriers will lock your price in for 12 months. At the end of 12 months you will receive a new price that will combine increases due to age and Rate Actions. In this case, your Medigap price only increase once a year but it can lead to sticker shock since it includes 2 rate increases.

👉Need more info? Read our article “Can Medigap Premiums Increase?“.

How Often Can Medigap Rates Increase — and By How Much?

We’ve covered the two main reasons your premium can rise—your age and state-approved rate actions. But here’s the catch: there are no federal limits on how often or how much your Medigap rates can increase.

Most Medigap rate increases fall between 3% and 10% per year, but some states see bigger jumps. These hikes usually reflect inflation, rising medical claims, or changes in how insurers forecast future costs:

• Frequency: In theory, your plan could face more than one rate action in a year—especially if claims spike—plus the birthday-based increase if it’s attained-age. But in practice, most people see one or two increases per year, depending on their plan type.
• Size (Rate Action): Rate actions are company-wide increases approved by your state’s insurance department. They’re based on how much the insurer pays out in claims versus what it collects in premiums. These hikes usually range from 5% to 12%, though some states set limits.
• Size (Birthday): Birthday-based increases start small—usually 2% to 4%—but they tend to grow as you reach your 70s and 80s. It’s all based on the insurer’s internal pricing tables.

💡 Example: Let’s say your Plan G premium is $150 a month. A 6% company-wide increase would bump it to $159. That may not sound like much—but over 12 months, that’s an extra $108. And if you also get a birthday-based increase, the total could be even higher.

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Can I Switch Plans to Avoid a Rate Increase?

Yes — in many cases, you can. If your Medigap premium keeps rising, it’s smart to compare rates. Since Medigap benefits are standardized by letter, plans with the same letter (e.g Medigap Plan N) will have the exact same benefits and access to doctors.

In most states, switching Medigap plans after your initial enrollment period means going through medical underwriting. That means the insurer can review your health history and deny coverage or charge more. Learn more about Medigap underwriting here. However, depending on where you live, you may be able to switch Medigap without answering new health questions. Source: Medicare.gov.

What to Do If Your Medicare Supplement Premium Rates Increase

You open your renewal letter and—ouch—your Medigap premium just jumped again. Don’t panic. There are smart, simple steps you can take to lower your costs without sacrificing coverage.

Here’s what to do step by step:

1. Compare your current plan with others: All Medigap plans with the same letter (like Plan G or Plan N) offer the same benefits by law—only the price changes. That means you might find the exact same coverage for less just by switching companies. You can get an instant Medigap quote here to see real rates in your ZIP code.

2. See if you qualify to switch: Some states have consumer-friendly rules that make it easier to change plans. Our Medicare Insurance Switching: Ultimate Guide, can help you find out what applies in your state.

3. Ask for discounts and payment options: Some insurers offer discounts for things like household enrollment, automatic payments, or electronic billing. If you’ve been with your carrier for a while, it’s worth asking—these small savings can add up. Want to learn more? Check out our article on Medigap Discounts and Special Offers.

FAQs: Can Medicare Supplement Rates Increase Mid-Year?

Q: Can my premium go up even if I never use my plan?

A: Yes. Medigap pricing is based on group experience, not individual claims. Even if you didn’t see a doctor, your rate can rise if overall medical costs increased for your insurer’s book of business.

Q: Does every company raise rates at the same time?

A: No. Each insurance company files its own rate request with the state, so increases can happen at different times—and by different amounts. Rate increase are rarely on January 1st.

Q: What if I can’t afford my Medigap anymore?

A: Don’t drop your coverage before reviewing your options. You might qualify for a lower-cost plan or discounts that reduce your premium. Also, if your Medicare supplement premiums are becoming unaffordable, you may want to explore Medigap high-deductible Plan G

Q: Do some insurance companies do a better job at keeping rates low?

A: Maybe but it is hard to determine. Insurers with healthier members tend to have fewer claims, which helps keep rates lower in theory. Senior65.com believe there is no reliable way to know who will keep prices down in the long run so our best recommendation is to pick a national Medigap insurance provider with the lowest price. Get a Medigap quote here https://www.senior65.com/quote

Q: If I switch to a new plan, will I have to pay a deductible again?

A: No. When you switch plans, Medicare honors the amount you have already paid toward the Medicare Part A and Part B deductibles for the current year so you don’t need to start over or pay it again.

Q: How much notice will I receive before a rate increase?

A: Most insurers must give you 30 to 60 days’ notice before a rate increase takes effect—so you’ll have time to review your options.

Next Steps: How to Keep Your Coverage Affordable

Medigap offers strong protection—but only if it fits your needs and your budget. Medicare Supplement rate increases happen to everyone — but staying informed helps you stay ahead. Review your plan each year, mark your Birthday Rule window if your state offers one, and compare prices regularly.

If your premium just went up, don’t assume you’re stuck paying it. Don’t pay more for the same coverage. Get an Instant Medigap Quote or call 800-930-7956 to explore your options with no pressure.

💡 When you understand why Medigap rates go up mid-year, you can plan ahead, protect your budget, and make sure your coverage works for you—not against you.