If you have a Medicare Supplement plan (also called Medigap), there’s a good chance you recently opened a letter in 2026 and discovered your monthly premium will soon go up. Again. We are seeing Medigap plan increases of 15% to 30% on average for our California Medicare clients.
This trend is likely to continue into 2027, so I wrote this for my current and potential clients who call to ask, “Why did my Medicare supplement plan go up?”
First, take a breath. You’re not alone, and you’re not out of options.
Medicare Costs Are Increasing in California
About 43% of people in traditional Medicare carry a Medigap policy, according to KFF Health News. And in 2026, a large share of them are facing some of the steepest rate increases in years.
Here in California, I’ve seen Medigap plans increase in price between 15% and 31%, with an average of about 20%. So if your plan cost $300 before, a 20% increase means it now costs $360, a big jump for a senior on a tight budget.
Supplement cost increases can vary by region and county. Northern California is more expensive for supplements than Southern California, although there are cheaper pockets based on ZIP code. In Los Angeles County and San Bernardino County, the increases have been roughly average.
5 Ways To Deal With a Surprise Medigap Rate Increase in California
So, when possible, you want a “guaranteed issue” Medigap plan that ensures you’ll be issued a policy regardless of your health. Here are ways to deal with higher Medigap costs.
1. Use the Birthday Rule to Know When You’re Allowed to Switch Plans
Familiarize yourself with this California Medicare supplement rule. Every year, during the 60 days after your birthday, you have the right to switch to a Medigap plan with equal or lesser coverage without underwriting. Insurers cannot turn you down or charge you more because of your medical history.
It’s a guaranteed right, once a year, every year. Mark your birthday window on your calendar now, and start shopping about a month before it opens.
2. Check Prices for Your Current Plan with Other Insurance Carriers
As I tell every client who’s surprised by their premium increase: A Plan G from one company covers the same things as a Plan G from any other company, as the federal government sets the benefits.
To prepare for your Birthday Rule move, a good independent agent will pull quotes from multiple California carriers, explain the pricing model behind each one, and help you think about long-term rate stability.
Or you can DIY and go to medicare.gov, enter your ZIP code and your current plan letter, and you’ll see every carrier offering that plan in your area and what they’re charging. Prices for identical coverage can vary dramatically. Just remember, you’ll only see this year’s rates, not next year’s rates.
3. Switch to a New Medigap Plan
Under the Birthday Rule, you can switch to a less expensive plan with reduced coverage. You may pay less each month if you switch to a plan with fewer benefits that might work better for your monthly budget. However, some other plans expect you to pay more in copays, coinsurance, or deductibles, so you’ll need to budget for that.
In one recent case, I found a Plan G client, another, cheaper Plan G from a different insurer, which saved her $30 a month.
However, she said that the Medicare Supplement plan wasn’t cheap enough. So we moved her to Plan N, saving about $100 a month.
For many people, Plan N’s lower premium outweighs the occasional copay costs and the risk of “excess charges” (amounts charged above Medicare’s approved rates). I’ve only seen excess charges a few times, because most doctors and hospitals in California accept Medicare’s standard rates.
High-Deductible Plan G is another option, with premiums typically much lower per month at age 65, and rate increases have historically run far below those of standard Plan G.
However, the trade-off is that you’ll first pay a hefty deductible that changes every year, so you need significant savings in the bank to pay those medical bills until your plan takes over. In 2026, the deductible is $2,950. For relatively healthy people who want predictable, low monthly costs, it’s worth a look.
In addition, if you switch from Plan G to Plan N, going back up to Plan G in the future means you’ll have to deal with underwriting and possible denial.
4. Consider Medicare Advantage
If you’re stuck without a birthday window and your Medigap premium has become genuinely unaffordable, Medicare Advantage is worth a look. I help clients with both types of coverage, but my job isn’t to steer you toward one or the other. It’s to help you find what works for your situation without leaving you full of regrets.
At the national level, we’re likely to see the Medicare Advantage market expand as healthcare costs remain a concern. Premiums are going through the roof, and people on a budget will have to look at MA.
The other thing I always tell clients considering this switch is that going back to Medigap later isn’t always possible without medical underwriting, as mentioned earlier. If you’re weighing Medicare Advantage against a Medigap plan, let’s talk through it carefully before you decide.
5. Apply for a New Medigap Plan
If you missed your California Birthday Rule window and want to switch to a cheaper Medigap plan, you’ll need to apply with underwriting, as discussed earlier. If you’re very healthy, there may be a higher chance of approval even with underwriting. I have several people successfully apply every year, but please talk to me first about your chances.
Reasons Your Medicare Supplement Premium Went Up
I wish I could give you one clean answer. The truth is, many things went wrong at the same time for many people, and they all pushed in the same direction.
Medical Costs Surged
After COVID-19 shutdowns ended, everyone and their mother went for expensive doctor visits, procedures, and tests, driving up demand and costs and overall inflation. Medigap plans cover what Medicare doesn’t, so when the bills go up, so do the premiums.
The Medicare Population Aged
In my experience, people in their early to mid-70s seem to be hit the hardest by these changes. Most plans in California use “attained-age” pricing, so your premium goes up with each birthday, added on top of whatever general rate increase the company applies.
Healthy People Left
Over time, many healthier Medicare enrollees moved to cheaper Medicare Advantage plans. When fewer, sicker people share a plan’s costs, everyone in that group ends up paying more.
Plans Closed to New Members
Plan F stopped accepting new members years ago, and some Plan G pools are heading in the same direction. The pool ages, claims rise, and premiums climb faster than normal inflation.
Your Discount Ran Out
Some Medigap insurers attract new members with a substantial discount, sometimes 30% off, but that discount shrinks by a fixed amount every year. So while the base rate is going up, your discount is going down.
Why Are Medicare Premiums Rising So Much?
The biggest mistake people make is doing nothing and assuming they’re stuck. In many states, changing to a cheaper Medigap plan can be difficult, particularly if you have chronic health conditions, due to medical underwriting requirements.
Medical underwriting means the insurer will review your medical history. Medicare Supplement Carriers also now routinely run prescription drug history checks through third-party databases as their first line of review, often before looking at anything else.
Carriers are trying to avoid cost risks more than ever, so approval standards are tightening, and the list of conditions that can lead to a denial is long, including high blood pressure, diabetes, stroke, cancer, and more. Companies that used to be my go-to fallback when another carrier denied a client are now issuing full denials without even investigating when a red flag pops up.
In California, you have options every single year, regardless of your health. But many people don’t know what they can do about rate increases.
California residents have meaningful protections that most people in other states simply don’t have. Understanding and using those protections can make a real difference.
The Bottom Line
Premium increases are real, they’re ongoing, and the letters explaining them are often vague. I understand why people feel frustrated and powerless when they arrive.
But Californians genuinely have more options than most people in this country, and more than most people realize. The catch is that none of these protections help you if you don’t know they exist or don’t act in time. Whether you’ve just received a rate increase letter or you’re signing up for Medicare for the first time, I’m glad to help you think it through, at no cost to you.
If your premium went up this year, treat it as a sign to review your options, not as something you just have to accept. I happily provide free consultations to all California residents – there’s no cost to explore your options.
This article is for educational purposes. Medicare plan availability and pricing vary by ZIP code and change annually. Speak with a licensed Medicare agent to review your specific options.