Health Plan Premiums Increase Eight Times Inflation Rate

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Health Plan Premiums Increase Eight Times Inflation Rate

For the fifth year in a row, seniors can expect double-digit health insurance rate hikes. Insurance industry surveys are forecasting that health insurers will increase supplemental insurance premiums by about eight times the rate of inflation for 2004. Advisor editor and COLA watcher Mary Johnson predicts that the Social Security Administration is likely to announce a COLA for 2004 of about 2.3%. Medigap, and Medicare HMO insurance premiums, on the other hand, are likely to soar 17% or more for many retirees. Medicare premiums are expected to jump 12.4%.

Sources: “Employer Health Plan to See Double-Digit Increases in 2004,” Aon Consulting, July 7, 2003. “Medicare Recipients Face 12.4% Rise in Premiums,” Robert Pear, The New York Times, March 26, 2003. Consumer Price Index data through June 2003, The Bureau of Labor Statistics, July 16, 2003.

October 2003