Officials in a Midwestern state have persuaded a large insurer to reduce a Medicare supplement insurance price increase.
Blue Cross and Blue Shield of Michigan, Detroit, will be reducing the Medigap rate hike to 19%, according to officials in the Michigan Office of Financial and Insurance Services.
Originally, Michigan Blue had proposed increasing rates about 50%, officials say.
The Medigap rate hike is the first approved for Michigan Blue since 1999.
Michigan Blue argued that it needed to increase rates substantially because costs have risen greatly since 1999.
The increase actually approved, which will take effect Oct. 1, should cover Michigan Blue’s costs while protecting the older Michigan residents who would have had a hard time paying 50% more for Medigap coverage, officials say.