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.
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.
CSG Actuarial reviewed roughly 780 individual company-state-plan adjustments from more than 100 carriers across nearly every state and jurisdiction.
Their analysis found:
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.
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:
The increases being reported during 2026 show that rate pressure remains an important issue for agents managing an existing Medicare Supplement book.
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.
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:
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.
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:
It can also remind clients of the ongoing value you provide after the initial sale.
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.
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.
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
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.