The Cost of Medicare Supplement Insurance: 2000-2020
The cost of Medicare supplement insurance is a difficult thing to predict. There are many factors that contribute to the price of this type of insurance, and they can change from year to year. For example, in 2000, the average annual premium for an individual was $567, but by 2020 it had increased to $1,785!
Last year, the average annual premium for an individual was $1455. That’s a whopping increase of over 25% in only one year! On top of this, if you’re already paying more than that amount per month (which many people are), then your insurance won’t be going up by 25%, but even higher because it will now put you at 95% coverage instead of 80%.
The cost is so unpredictable and expensive these days that some seniors simply can’t afford their Medicare supplement premiums or other expenses like housing and food. And with healthcare costs rising every day, there may not be any relief coming anytime soon.
With Affordable Care Act signed by Obama in 2010., the cost of Medicare supplement insurance should be going down.
Medicare is a federally funded program that provides least expensive Medicare Supplement insurance for the elderly, and those under 65 with certain disabilities or other ailments. The only problem? It doesn’t cover everything! That’s where supplemental private plans come in to help fill these gaps, so people don’t have to turn down potentially life-saving treatments due to cost. But it can be hard finding an affordable plan because prices change all the time – sometimes even double from one year to another! For example, a typical premium in 2018 was $154/month but as of 2020 that amount had a whopping increase of over 25% in only one year! On top of this, if you’re already paying for another type of insurance, like a retirement plan or car insurance, then you might not even be eligible to qualify for supplemental coverage. To make matters worse, Medicare Supplement plans have the highest cancellation rate on the market – so if you get sick and your premiums go up it’s likely that they’ll cancel your policy too!