Medicare Supplement Rate Actions - 2025 Q2 Update

The Medicare supplement market continues to experience higher claims, and carriers are attempting to mitigate the higher loss ratios by pursuing larger rate increases.  Throughout 2024 rate increases trended up from 2023 levels.  Now, results through the first quarter are in.

The charts below summarize the average historical rate increases of the most prominent carriers in the Medicare supplement space. This data pertains only to open blocks of business and does not consider instances where companies are implementing large rate decreases as they re-enter the market using old paper. All carriers besides the largest six have been grouped together as “Other”.

Let’s start with Plan G.

Each group is showing larger rate increases in 2025 than in previous years. The data suggests that Aetna and Mutual of Omaha have been pursuing significantly larger rate increases in 2025. Alternatively, Cigna and Humana rate increases are more aligned with what they have taken historically. It will be interesting to see if some of the higher historical averages will help prevent the need for double digit increases or simply delay them.

Next up is Plan N.

Here, all groups display larger increases in 2025 than usual. Again, you can see that some companies show a more gradual reaction to increasing claims trend while others have acted more swiftly. The “Other” category shows that most companies are taking significantly elevated Plan N increases in both 2024 and 2025.

For all plans, we expect the trend of higher rate actions to continue through 2025 as claims come in higher than previous years and push up loss ratios. 

Our team has extensive experience filing rate increases.  We can help guide you through the development of your rating plan and help you get the most difficult filings approved.