Why Are Medicare Supplement Prices Increasing So Much?
Insurance companies often cite increased claims since 2020 as the reason for rising Medicare Supplement premiums. While it’s true that post-2020 health insurance claims have risen — impacting both Medicare Supplement and Medicare Advantage plans — this is only part of the story.
The Real Problem – A Structural Pricing Issue
Medicare Supplement policies have become commodities, differentiated almost entirely by price. This has led to a “race to the bottom” where companies compete to offer the lowest premiums — even if it means losing money in the short term.
Why the Pricing Models Are Failing
Many companies entering the Medicare Supplement market have decades of experience in property and casualty insurance, but those pricing models don’t work in health insurance. The result? Gross miscalculations in premium setting and financial instability for insurers.
Why My Analysis Is Different
In my linked video, I present a unique financial analysis of the Medicare Supplement industry that no one else on YouTube has covered. My background as a financial analyst gives me insight into how misapplied actuarial methods and aggressive underpricing have set the stage for today’s massive price increases.
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