Lifestyle
A New Jersey Retiree About to Turn 70 Got His Medigap Rate for Next Year. Then He Saw It Jump Almost 20%: “I Just Got a Huge Premium Increase”
By Curtis Jones · November 1, 2026
Jim has carried the same Medicare supplement policy for about five years. His Plan N Medigap policy started Dec. 1, 2021.
“I paid $112 a month for that first year,” he said in a video posted Oct. 30 on his YouTube channel, I Was Retired! (@IwasRetired). Jim, who gives only his first name, describes himself on the channel as a do-it-yourself retiree who was unexpectedly retired at 59. In the video he says, “I’m about to turn 70.”
His premium rose in small steps over the next few years, he said, to about $139 a month, then dropped to $133 when his wife signed up for her own Plan N policy and the couple qualified for a household discount. Then came next year’s rate.
“I just got a huge premium increase,” he said. “Well, now in 2027, my rate jumped 19.6% to $159 a month.” In the video’s description, he wrote that his policy is with Mutual of Omaha and that the premium “is jumping nearly 20% for 2027 in New Jersey.”
He walks through his premium history and his next steps in his video on YouTube.
Jim said he believes his policy is priced by age, and he estimated that about 4 to 5 percentage points of the increase come from getting a year older. He said the remaining 15% or so is part of a broader wave of increases, and he cited figures from the firm Telos Actuarial showing average increases this year in the teens for popular plans.
Independent data show Medigap premiums have been climbing. According to KFF, the average monthly Medigap premium among current policyholders was $244 in 2025. KFF found that premiums rose 7% on average from 2024 to 2025 and 20% from 2020 to 2025, with Plan G up 13% in a single year. In an April report, KFF Health News found that brokers say double-digit increases for Medigap policies are becoming the norm.
Several viewers posted their own numbers. “Mine (Plan N) went up 20% this year, and 25% last year,” one commenter wrote. Another wrote, “Luckily, I can take advantage of the birthday rule in Virginia to switch plans in the next two months.” Those accounts could not be independently verified.
He isn’t dropping coverage. “We’re not canceling our plans,” he said. He and his wife plan to wait for her renewal notice and shop only as a couple, so that any household discount carries over. “So protect that policy. Don’t cancel it until your new coverage is locked in,” he said.
What you can check. Timing matters most. KFF explains that federal law gives people 65 and older a one-time, six-month Medigap open enrollment period starting when they first enroll in Part B. Outside that window and certain other events, people with pre-existing conditions may be denied a policy.
State rules. KFF reports that 16 states have birthday rules that let current policyholders switch each year, around their birthday, to a policy with equal or lesser benefits, and that Connecticut, Massachusetts, Maine and New York have broader protections.
Free help. Every state has a State Health Insurance Assistance Program. SHIP counselors offer one-on-one Medicare counseling at no cost and can help compare costs. Jim said SHIP counselors can help confirm state rules, and he suggested asking an independent broker about recent rate increases and household discounts.
“If you are in a similar situation, you’re not alone and you’re not stuck,” he said.
This article is for general information and is not financial or legal advice. Medigap prices and rules vary by insurer and by state. This article was produced with the assistance of AI and fact-checked against the sources cited by LightWave Reports.