Medigap Rates Are Going Up: How Insurance Agents Can Keep Their Clients

Medicare Supplement premiums are continuing to climb in 2026—and for insurance agents, those increases create a significant client retention challenge.

CSG Actuarial’s review of Medicare Supplement rate increases submitted from January through August 2026 found an average increase of about 15%, with a median increase of approximately 14.5%. Roughly one in five increases came in at 20% or higher.

For agents, the takeaway is simple:

Do not wait for a client to call you about their rate increase.

Listen to Episode 25

In Episode 25 of The Insurance Producers Guild, we break down why Medigap rates are rising, what the latest rate increases mean for clients, and how agents can proactively protect and retain their Medicare Supplement book.

Medicare Supplement Rate Increases Are Running Higher

CSG Actuarial reviewed roughly 780 individual company-state-plan adjustments from more than 100 carriers across nearly every state and jurisdiction.

Their analysis found:

• Average rate increase: approximately 15%
• Median rate increase: approximately 14.5%
• About 20% of increases were 20% or higher
• Plans G, F and N generally experienced some of the largest increases, averaging roughly 15% to 17%

These are market-level figures—not the rate increase a specific client will receive.

A client's actual premium change can vary based on the carrier, state, policy block, rating methodology, age, discounts and other factors. Agents should review the client's actual renewal notice rather than using a national average to describe an individual's increase.

Why Are Medigap Rates Increasing?

Medicare Supplement carriers have been dealing with higher claims and utilization following the pandemic.

CSG Actuarial has reported that carriers have been pursuing larger rate increases as they work to bring premium levels in line with higher claims experience.

The trend has been building for several years. CSG reported average Medicare Supplement new-business rate increases of:

• 5.5% in 2023
• 7.8% in 2024
• 10.6% in 2025

The increases being reported during 2026 show that rate pressure remains an important issue for agents managing an existing Medicare Supplement book.

The Retention Problem Agents Can Easily Miss

Medicare Supplement clients can be easy to overlook.

Unlike Medicare Advantage or Part D clients, Medigap policyholders do not receive an Annual Notice of Change outlining plan changes for the upcoming year.

Instead, a client may simply receive a rate notice and then see a higher premium drafted from their account.

Many clients like their coverage. They like the freedom to see providers who accept Medicare. They may have had the same policy for years.

So they don't necessarily call their agent.

But that doesn't mean they aren't paying attention to the price.

A substantial rate increase can cause a client to start researching alternatives, respond to another agent's advertisement or contact another agency—without ever calling their existing agent first.

That is where silent attrition can happen.

What Medicare Supplement Agents Should Do Now

Rather than waiting for clients to react to a premium increase, agents can make rate reviews part of their regular retention strategy.

Start by identifying clients with upcoming renewals, particularly those enrolled in Plans G, F and N.

Then review:

• Current carrier
• Current premium
• Upcoming rate increase
• Policy anniversary date
• How long the client has held the policy
• Available alternatives in the client's market
• Whether underwriting may apply if the client considers changing coverage

The goal isn't to move every client.

In many cases, keeping the existing policy may still make sense.

The goal is to make sure you are the person helping the client evaluate the increase.

Turn Rate Increases Into Review Appointments

A rate increase gives agents a natural reason to reconnect with clients.

Instead of waiting for the phone to ring, consider contacting clients before their policy anniversary and letting them know you are available to review their coverage.

That conversation can help you:

• Explain the client's actual rate change
• Review their current Medicare Supplement coverage
• Determine whether the premium remains competitive
• Discuss available options when appropriate
• Explain potential underwriting considerations
• Update client contact information
• Strengthen the client relationship

It can also remind clients of the ongoing value you provide after the initial sale.

Don't Assume a Client Can Simply Switch Medigap Plans

One important part of the conversation is setting realistic expectations about changing Medicare Supplement coverage.

Outside of certain guaranteed-issue situations or state-specific protections, a client who applies for a different Medigap policy may be subject to medical underwriting. Depending on the circumstances, the new carrier may decline the application or the client may not qualify for the rate they expected.

That makes it especially important for agents to review the client's individual situation before recommending a change.

Agents should also be familiar with any Medigap consumer protections available in the client's state, including birthday rules or other guaranteed-issue opportunities that may allow eligible policyholders to change coverage without medical underwriting.

Protect the Book You Already Built

Acquiring a new Medicare client takes time and money.

Keeping an existing client often starts with something much simpler: staying in contact.

With Medicare Supplement rates moving higher, agents have a clear reason to become more proactive with their existing book.

Pull your upcoming renewals. Identify clients receiving meaningful increases. Reach out before they start shopping on their own.

A rate increase doesn't automatically mean a client needs a new policy.

But it should probably trigger a conversation.

Build a Stronger Medicare Supplement Business with PSM

PSM Brokerage helps independent insurance agents build and retain their Medicare business with access to competitive Medicare Supplement carriers, experienced support, marketing resources, technology and one-on-one guidance.

Whether you're looking to expand your Medigap portfolio, strengthen client retention or grow your overall Medicare book, our team is here to help.

Learn more about working with PSM Brokerage

Listen to Episode 25

In Episode 25 of The Insurance Producers Guild, we break down why Medigap rates are rising, what the latest rate increases mean for clients, and how agents can proactively protect and retain their Medicare Supplement book.

Sources

• CSG Actuarial — Medicare Supplement Rate Increases: What the Market Has Shown Throughout 2026
• CSG Actuarial — Medicare Supplement rate trend analysis
• Medicare.gov — Medigap coverage and switching information