Ray's Retire Right Report Retire Right — Retire Smart! Raymond T. Martin, Retirement Coach and Medicare Planning
July 2025 Happy Independence Day! In honor of our nation’s founding, I’ve gathered a few historical tidbits to entertain you!
What's the Medigap "Birthday Rule"?
Many Medicare Supplement (Medigap) carriers are implementing rate increases between 10% and 20% this year. This spike is largely due to the July is surge in elective procedures that were delayed "National Hot Dog Month" during the pandemic and are now being completed, driving up claims and overall plan July 23rd – 26th are costs. "Hemmingway Look-Alike Days" One tool that can help consumers manage rising And July 31st is premiums is the Medigap “Birthday Rule.” This "Uncommon Instruments Awareness Day" rule allows policyholders in certain states to switch to another Medigap plan of equal or lesser benefits without going through medical underwriting. The window to make this switch In 1810 Sir Walter Scott, wrote a poem, “The typically opens around the enrollee’s birthday and Lady of the Lake”. The poem was made into a lasts 30 to 60 days, depending on the state. This British stage play and a song written for that play gives Medicare beneficiaries an annual provided the tune we know as “Hail to the Chief.” opportunity to shop for better rates or customer But the chief mentioned was Scottish folk hero, service without being penalized for their health Roderick Dhu. In 1815, the song was given new status. lyrics and played to honor George Washington at It’s important to note that insurance carriers cannot the conclusion of the War of 1812. Thereafter it raise premiums at will. Any Medigap rate increase was played occasionally for other presidents, but must be submitted to and approved by the state’s it became a ritual at the insistence of First Lady insurance commissioner. This regulatory oversight Sarah Polk. Her husband, President James Polk, is in place to help ensure that increases are was just 5’ 8”. To avoid the embarrassment of his justified and not excessive. entering a crowded room unnoticed, his presence As of mid-2025, the following states have adopted was announced with a drum roll and “Hail to the a version of the Medigap Birthday Rule: Chief”. Since then, a few unsuccessful attempts California, Idaho, Illinois, Kentucky, Louisiana, have been made to change the tradition. In 1954 it Maryland, Nevada, Oklahoma, Oregon, Utah was officially established as the musical tribute to (effective May 7, 2025), Virginia (effective July 1, the U.S. President. 2025), and Indiana (effective January 1, 2026). Several other states, including Michigan, Ohio, and Nebraska, are considering similar legislation. With rates rising and more states adopting Every Independence Day, how many times does consumer protections, now is a great time to the Liberty Bell ring? review your Medigap options during your birthday month. (See the Answer Area.)
Hail to the (Short) Chief
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