Medicare Supplements vs. Medicare Advantage for 2025

I wish everyone on Medicare could comfortably afford to purchase a Medicare Supplement Plan G. That is what I will purchase at 65 and that is what my parents are on. But many people cannot afford or do not want to pay for a Supplement and choose a Medicare Advantage plan instead.

If you have had your Medicare Supplement plan for a few years, you were probably shocked with the higher-than-normal rate increases you saw in 2024. Buckle up, because industry experts are forecasting even higher increases in 2025.

Normally plans go up 5 to 10 percent each year, varying by plan, gender, age and state. In 2024, I saw most plans go up 9 percent or more. The highest increase I saw was 17 percent!

Inflation is the only reason prices are going up. As more and more people move into Medicare Advantage plans, that puts price pressure on those that remain in Medicare Supplement. Plus, those that are sick are more likely to keep their Supplement and drive up costs on everyone. The healthy flee to Medicare Advantage with its low to no monthly premium.

This Annual Election Period (AEP) when you can decide to move from your Medicare Supplement plan into a Medicare Advantage plan ends in December. Medicare Supplement companies do not announce their rate increases until after AEP ends. This means you won’t have all the information you need to make a wise decision.

So you have been warned. Expect larger than normal increases.

If that causes too much stress on your budget, the time to change to Medicare Advantage is during AEP. If you are healthy enough and want to move to another Medicare Supplement insurance company, you can do that at any time of year. Keep in mind that will help save a little money, but the impact of the Inflation Reduction Act, medical inflation, and healthy people moving to Advantage will cause ALL Medicare Supplement companies to raise prices. No one is exempt.

The Medicare AEP, unfortunately, falls during the holidays when people don’t have the time or desire to dive into this topic. Now is the time to look at what you are paying and investigate your options so you are ready when October rolls around!

Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at TheMedicareFamily.com.