Pricing Method

Insurance companies set their own premiums for Medigap (Medicare Supplement Insurance) policies. How they set the price affects how much you pay now and in the future. Medigap policies can be priced or "rated" in three ways: Community-rated (or "no-age-rated") Generally the same monthly premium is charged to everyone who has the Medigap policy, regardless of age. Your premium isn’t based on your age. Premiums may go up because of inflation and other factors but not because of your age. Issue-age-rated The premium is based on the age you are when you buy (are “issued”) the Medigap policy. Premiums are lower for people who buy at a younger age and won’t change as you get older. Premiums may go up because of inflation and other factors but not because of your age. Attained-age-rated The premium is based on your current age (the age you have “attained”), so your premium goes up as you get older. Premiums are low for younger buyers but go up as you get older. They may be the least expensive at first, but they can eventually become the most expensive. Premiums may also go up because of inflation and other factors.