PALM BEACH GARDENS, Fla., August 7, 2002 - The rise in average premium rates for Medicare supplement insurance (Medigap) slowed dramatically in 2002 to only 2.4 percent,¹ compared to an average increase of 10.9 percent in 2001, and 7.2 percent in 2000, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

Three factors contributed to the dramatic decrease in the premium growth rate: Companies ceased offering certain high-priced plans; insurers left the Medigap marketplace altogether; and companies lowered or maintained their annual premiums due to legislative changes that helped to reduce claims.²

Overall, 146 companies sold Medigap in 2002, compared to 167 in 2001 and 181 in 2000, with lower rate increases in all 10 of the standard A - J plans, and actual average rate decreases in Plans I and J.

Plan	2002 % Change in Average Medigap Premium	2001 % Change in Average Medigap Premium	2000 % Change in Average Medigap Premium
A	9.91	14.92	10.28
B	5.97	12.82	9.17
C	7.35	11.62	7.98
D	3.90	16.10	7.77
E	4.36	8.74	5.59
F	5.18	10.98	5.60
G	2.38	13.14	2.92
H	3.18	15.76	40.29
I	-.21	13.94	22.16
J	-21.24	14.16	16.87

Although the national averages show slower rate increases, consumers in several states continued to experience large rate hikes in Medigap rates. In Rhode Island, New Jersey, and Florida, rates rose by an average of 10.6, 9.3, and 8.1 percent, respectively. Meanwhile, Delaware, Nevada, and New Mexico had the biggest decreases, with Medigap insurance prices dropping an average of 3.1, 3.0, and 2.2 percent, respectively.

"With the exception of certain regions, consumers are finally getting some relief from the large rate increases they've suffered during the past few years, especially in the plans that cover prescription drugs," commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings, Inc. "However, there is still a huge variation in Medigap costs from company to company, implying that many consumers are being greatly overcharged and could save money simply by shopping around."

Average Rate Increases Continue to Vary Widely Among States

Despite more than 10 years of standardized Medigap plans - from the basic "A" plan to the comprehensive "J" plan - Weiss' analysis of 114 providers of Medigap policies found that there continues to be a wide variation in price for the same plans. The broad ranges in premiums for a 65-year-old woman are illustrated:

	In Florida, a Plan A costs between $766 and $2,028.
	In Texas, the rate for Plan F varies from a low of $887 to a high of $2,487.
	In Arkansas, the least-expensive Plan J costs $2,878, while the most expensive plan is $9,376.

Overall, Weiss found that consumers in Florida would pay the highest average premiums for Plans A through G, while Arkansas has the highest average premiums for Plans H, I, and J.

Senior citizens shopping for the least expensive and safest Medigap policies can obtain a Consumer Guide to Medicare Supplement Insurance ($49) available from Weiss Ratings at 1-800-289-9222 or by visiting www.WeissRatings.com. The report, based on each consumer's individual circumstances, provides customized comparisons of the actual premium rates offered in his or her county of residence for each of the ten Medigap plans, along with the Weiss Safety Rating for each carrier.

Weiss issues safety ratings on more than 15,000 financial institutions, including banks and thrifts, HMOs, life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, and securities brokers. Weiss also rates the risk-adjusted performance of more than 11,000 mutual funds and 9,000 stocks. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived strictly from sales of its products to consumers, businesses and libraries.

¹ Rates are based on a 65-year-old female.

² Centers for Medicare and Medicaid Services 42 CFR Parts 413, 419, and 489 [CMS-1159-F2] RIN 0938-AK54 Medicare Program: "Changes to the Hospital Outpatient Prospective Payment System" implemented a 68.9 percent uniform reduction in pass-through payments for services furnished on or after January 1, 2002. This resulted in a significant reduction in Medicare Part B claims.