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If you are currently paying for medicare, you may be concerned about your current rates. It may seem as if your medicare supplement premiums keep going up for no reason at all. There are reasons why they have increased. None of them were a result of any actions on your part. Most are due to unforeseen circumstances by insurance providers and others were caused by government regulation changes. In effect all of these have combined to create a hole in your wallet where money is flowing out.

Teaser Rates

The main reason why medicare supplement premiums have increased is due to teaser premiums offered by insurance companies. This is similar to the initial rate given by credit card companies. Once the inital term has passed the rate rises to meet the true cost to participate. Many of these costs were to attract numerous customers. There was no way that they could afford to keep the lower premiums at the low rate for more than a few years. So they must pass along the cost to the customer.

New Government Plans

Many of the older medicare supplement premiums were based upon pre-Obama healthcare plans. In order to keep rates down a new influx of customers must arrive to keep the average cost low. Since the older plans will not receive any new customers as they are converting to the newer Obama healthcare options rates will rise.

Baby Boomer Effect

More baby boomers are retiring and getting older. They are now reaching the age of qualification for medicare. As more baby boomers participate in medicare the medicare supplement premiums will increase to compensate for the risk of additional customers. The rising cost of health care for the large number of people cannot be contained.

State Populations

Insurance is monitored by each individual state. There are some states that have a greater population of seniors that others. Florida is one such state. Rates will be higher in states where there are more seniors in a particular region. Medicare supplement premiums will be higher in populations with a large number of seniors.