440,000 Forced Out of Advantage Bought Medigap. Their Health Questions Were Waived. Their Claims Came With Them.
Your Plan G premium just jumped and you filed no claims, changed nothing, and did nothing wrong. The reason traces back to 440,000 people who landed in Medigap blocks across the country, and understanding it changes what you do next.
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A 72-year-old on Medigap Plan G opens her 2026 renewal and sees her premium rising 18%. She hasn’t filed a claim in three years or changed her coverage. Her renewal reflects more than her own use. An influx of guaranteed-issue enrollees can add claims pressure to a policy block, alongside other headwinds like medical inflation, heavier utilization and the rising age of the people already in it.
If you carry Plan G, the mechanic behind that letter is worth understanding.
Guaranteed Issue Meets an Aging Block
Medicare Advantage carriers exited hundreds of counties heading into 2026. Beneficiaries who lose an MA plan because it leaves their market gain a federal guaranteed-issue right to buy Medigap without medical underwriting. Industry analysis of 2026 rate filings reportedly estimated roughly 440,000 forced disenrollees bought Medigap for 2026. A Johns Hopkins analysis found approximately 2.9 million people experienced forced disenrollment for the 2026 plan year.
Not all of them landed in Medigap. KFF recently found that most beneficiaries affected by 2025 terminations had solid Advantage options available for 2026, and many took them. Those who did buy Medigap skew older and sicker than the average policyholder. Carriers can’t decline them or rate them individually for health. Those claims get absorbed into the block the applicant joins, and the block gets priced accordingly at the next filing.
Notably, there is no national Plan G pool. Premiums are set by carrier, state, legal entity and policy block, so the pressure lands unevenly. Two people with identical Plan G coverage in different states, or with different carriers in the same state, can see very different renewal rates. Selected 2026 filings involving six major carriers came in at 12% to 26% increases, with some regional filings above 40%. Chubb (NYSE:CB | CB Price Prediction) applied a 45% increase in mid-2025 to all enrollees at once rather than on individual anniversaries. Historical increases in the 3% to 5% range have been cited for Ohio specifically, not nationally.
What the Hike Costs on Top of Everything Else
The Medicare side of the bill rose independently. The standard Part B premium climbed to $202.90 in 2026 from $185.00. The Part B deductible went to $283 from $257. The Part A inpatient deductible went to $1,736 from $1,676. Those are confirmed CMS figures, and a Plan G holder is paying more for the underlying Medicare and more for the supplement covering its gaps. IRMAA surcharges tied to income from two years back can add substantially more for higher earners, one of several traps we mapped in a free Medicare guide.
Current estimates put the 2027 Social Security COLA in the mid-3% range, with the official figure due next month. If Plan G renewals repeat this year’s pattern in a given block, the raise won’t cover the increase there.
The Switching Trap
The obvious answer to a 20% hike is to shop. Every carrier’s Plan G covers identical benefits by federal standardization, so premium, rate history and service are the only variables. The trap is underwriting. Once your six-month federal Medigap open enrollment window closes, most states let insurers ask health questions. Diabetes with complications, a recent cardiac event or a cancer history inside the lookback can mean a decline or a rated-up premium that erases the savings. Guaranteed renewability protects the policy you have. It does not travel with you.
Some states carve out exceptions. Birthday rules in several states let you move to an equal or lesser plan without underwriting during a window around your birthday. Missouri uses the policy anniversary. New York, Connecticut and Massachusetts offer continuous or annual guaranteed issue. Maine also makes the cut, with some limitations.
Three Moves Worth Making Sooner Than Later
The renewal is set, but the next one isn’t, and these are the levers that exist before it arrives.
- Shop a same-benefit Plan G from a different carrier at your current age. Quoting five carriers takes about an hour. If you can pass underwriting, or you live in a birthday-rule state, identical coverage is often available for meaningfully less.
- Consider Plan N or High-Deductible Plan G if premium relief outranks predictability. HD Plan G trades a much lower premium for a deductible you pay before coverage begins. A healthy year favors it. A heavy claims year does not.
- Do not drop Medigap for a $0-premium Advantage plan just because the bill rose. Leaving is easy. Coming back, in most states, requires underwriting you may no longer pass. That’s exactly why the people who moved into Medigap for 2026 could only do it because their plan exited the market for them.
The pressure on your block is real. Whether you have a route out of it depends on your health, your state and how early you start asking.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
