Geri Frederiksen, a retired Council Bluffs school teacher, watched her Medicare supplement premium jump by more than $250 — a spike that left her stressed and searching for answers until Mutual of Omaha admitted the increase was a mistake. The insurer has since reversed her bill and says it is correcting the same error for dozens of other Iowa customers caught up in the same system issue.
According to KMTV 3 News Now Omaha, Mutual of Omaha identified a system issue that caused incorrect premium adjustments for 92 Iowa Medicare supplement customers. The station reported that Frederiksen's premium increased by $46, though the station also stated her monthly premium changed to $515 and that her stated increased premium was $726.03 — figures that differ from one another in the station's reporting and were not otherwise reconciled. Her previous premium was reported as $468.83.
A System Issue, Not a Health Problem
Mutual of Omaha said the 92 incorrect premium adjustments were not related to customers' health or claims experience, according to the station's report. The company said it had identified the customers affected by the issue and is working directly with them to correct premiums and refund additional amounts paid. Mutual of Omaha also said it sincerely apologized for the error and the resulting concern, per the same account.
The insurer said other customers do not need to take action, since the issue affected only a specific group, the station noted. Mutual of Omaha serves approximately 1.3 million Medicare supplement customers nationwide and about 18,000 in Iowa, the company said. More broadly, the station's report noted that Medicare supplement premiums can change because of rising health care costs and claims experience across similar policies — a reminder that not every rate hike signals an error like the one Frederiksen experienced.
Stress, Relief, and a Plan She Can't Easily Replace
Frederiksen told the station the premium error caused her stress, in part because she has a chronic lung condition that prevents other companies from insuring her. She had tried to find a different Medicare supplemental plan but is sticking with her current one, the station reported. Frederiksen said the news story — which aired on KMTV Wednesday — helped bring about the premium change, and she said she was called Friday with the correction.
She said she felt relieved and thrilled after learning of the correction, according to the station's report. Her situation underscores why many Medicare supplement holders stay locked into their existing plans even when premiums rise sharply: switching carriers isn't always an option for people with pre-existing conditions.
What Iowa Rules Say About Medicare Supplement Coverage
Iowa's consumer guide for Medicare supplement shoppers, published by Iowa SHIIP, advises people to buy just one Medicare Supplement policy, warning that holding more than one means paying for unnecessary duplication, and that no policy pays 100% of the difference in costs. Separately, Medicare Rights Center has noted that, under the Medicare Access and CHIP Reauthorization Act of 2015, people newly eligible for Medicare on or after January 1, 2020 can no longer purchase Plans C or F — a federal change that made Plan F, a standardized Medicare supplement plan, unavailable to that group of new enrollees, per the station's report.
Iowa also maintains administrative rules governing how Medicare supplement policies are regulated in the state. Filings from the Iowa Legislature show that state rulemaking applies to Medicare Supplement policies offered and issued on or after January 1, 2020, in furtherance of compliance with Iowa Code section 17A.7(2). A separate Iowa administrative chapter defines a 1990 standardized plan as a group or individual Medicare supplement policy issued on or after January 1, 1992, with an effective coverage date before June 1, 2010, including certain renewed policies and certificates.
Open Enrollment and Where to Get Help
The timing of the billing error coincides with Medicare's open enrollment period, the station reported. For Iowans confused about a premium change or considering a plan switch, the Area Agency on Aging encourages people to contact a Health Insurance Information Program counselor for guidance, according to the station's report.
Iowa also tracks historical data on standardized Medicare supplement rate changes through state records, including filings cataloged by catalog.data.gov showing how original standardized plans have been updated over the years. One such Iowa Insurance Division filing referenced a proposed 7% rate reduction affecting single females under certain modernized plan forms, illustrating how rate adjustments — up or down — are a routine, filed part of the state's regulatory process, separate from the kind of system error Mutual of Omaha says caused Frederiksen's spike.
