Will my rates increase because I use my supplemental coverage?
I get this question a lot and the answer is your policy may increase year over year, in most circumstances this will be the case, but it will not be because you used it more often than someone else. Your rates are based on the community’s usage of the particular plan. What I mean by this is, the insurance company will take the entire pool of a Plan in a geographic area and work the numbers to determine what they can charge to be competitive and make a profit. So your rate will be set by the entire community not just by you. Keep that in mind. You need to make sure the company you select has a history of reasonable rate increases; your agent should make that a priority when you are selecting a plan. Although history does not guarantee future performance it can be used as a yardstick to making sure you have the best plan for you, not just today but years from now.
On a side note if you are currently in a Plan F it will be in your best interest to start looking at a Plan G or N in the near future. The Plan F is going the way of the dodo bird as of 12/31/2019. You will not lose your Plan F, but it may be a very expensive policy after 12/31/2019. Please keep that in mind.