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Medigap Rates Rising
LANSING — Starting Oct. 1, Blue Cross Blue Shield of Michigan’s Medigap insurance rates will increase by 19 percent, affecting about 200,000 customers who are senior citizens and people with disabilities.
The rate hike is the result of an agreement between BCBSM, the state attorney general and the Office of Financial and Insurances Services. After BCBSM in February sought a 50 percent rate hike for Medigap policies, Attorney General Mike Cox requested that OFIS conduct a public hearing, at which the agreement was reached.
BCBSM has placed rates for Plan A at $35.24 per month and for Plan C at $107.09.
“The parties have reached an agreement that will both protect seniors from incurring what, for many, are unaffordable premium increases, while allowing BCBSM to charge an adequate amount to its Medigap customers to cover costs,” OFIS Commissioner Linda A. Watters said.
“We are pleased to have arrived at a solution that allows us to continue in our commitment to keeping quality Medigap coverage within reach for seniors and other Medicare beneficiaries,” read a BCBSM statement.