According to the article posted by Detroit Free Press, nearly 200,000 Medicare Beneficiaries are expected to see a rate increase on their Medicare Supplement Health Insurance Plan. According to the article, Blue Cross Blue Shield of Michigan is expecting beneficiaries to see an increase of $48 to $177 per month effective January 1, following a five-year steady rate on the BCBS Legacy Medigap plan.

The new rates will take into consideration the beneficiary’s age, gender and geographic location. The Legacy Medigap plan has never taken these demographics into account before and will result in men and older individuals paying more than women and younger individuals.

For beneficiaries in Michigan, the popular Legacy Medigap Plan C, the size of the proposed increases range from  about $48 additional per month for a 65-year-old woman in southeast Michigan (a total of $170 per month, not including potential subsidy), to a high of $177 additional per month for an 80-year-old man (a total of $300 per month, not including potential subsidy), according to the article from the Detroit Free Press.

Under current rates, both the 65-year-old woman and the 80-year-old man are paying $122.86 per month for Legacy Medigap Plan C — as is everyone else.

Rates would jump the most for policyholders under age 65, typically the disabled. Their Legacy Medigap Plan C rates would increase by $192, hitting about $315 per month.

While current Blue Cross Legacy Medigap Plan C members can keep their plans, the Legacy plan will close to new enrollment on Nov. 14. New customers will be directed to various new, yet similar, Medigap plans.

The Michigan Health Endowment Fund that will provide the new Medigap subsidies was created as part of the Blue Cross reorganization. Blue Cross is required by law to contribute up to $1.56 billion over 18 years to the fund.

The new Michigan Medigap subsidies: 

  • $40 per month for those 65-75 years old
  • $65 per month for those over 75
  • $125 per month for those under 65 with a disability
  • Qualifying household income of $17,820 or less for single person.
  • Qualifying household income of $24,030 or less for two people.
  • To apply for subsidy, go to MichiganMedigapSubsidy.com or call 1-866-824-9772. 

See below for a sample of proposed rates for the Michigan area (Source: Blue Cross Blue Shield of Michigan)

Legacy Medigap Plan C Proposed Rates

Effective Jan. 1, 2017

Changes are subject to the completion of the regulatory review process.

Southeast Michigan Rest of Michigan
Age Male Female Male Female
<65 $314.87 $314.87 $314.87 $314.87
65 $178.85 $170.33 $166.37 $158.45
66 $189.50 $179.62 $176.28 $167.09
67 $200.25 $188.92 $186.28 $175.74
68 $209.44 $196.66 $194.83 $182.94
69 $218.71 $204.40 $203.45 $190.14
70 $227.44 $210.59 $211.57 $195.90
71 $236.30 $216.79 $219.81 $201.66
72 $245.28 $222.98 $228.17 $207.43
73 $254.39 $229.18 $236.64 $213.19
74 $263.61 $235.37 $245.22 $218.95
75 $269.47 $238.47 $250.67 $221.83
76 $275.38 $241.56 $256.17 $224.71
77 $281.36 $244.66 $261.73 $227.59
78 $287.40 $247.76 $267.36 $230.47
79 $293.50 $250.84 $273.02 $233.35
80+ $299.66 $253.95 $278.76 $236.23

Are you one of the many affected by this increase?

To learn more about your Medicare Supplement plan options, please contact a licensed agent at Medicare Pathways today! We can review your current plan and provide education and affordable options that are available in your area, at no-cost. Call us at 866-466-9118. Calling this number will connect you to a licensed insurance agent.