Compare plans today.
When you buy a Medicare Supplement Insurance (Medigap) policy, your premium can be calculated in a few different ways depending on the insurer. Two of the most common rating methods are issue-age and attained-age pricing. Understanding how each one works can help you make an informed decision about your Medigap policy.
Issue-age Medigap premiums are set based on the age you are when you buy the policy and don’t go up just because you get older; they can still rise due to factors like inflation. Attained-age premiums are based on your current age and usually increase as you age; they often start lower for new enrollees but tend to climb more over time.
Issue-age (sometimes called “entry-age”) means your premium is based on the age you are when you first purchase the policy.
Your premium does not increase because of your age.
It may still increase over time due to factors like inflation or changes in medical costs.
For example, if you buy a Medigap policy at age 65, your premium will be lower than if you buy the same policy at age 75. However, as you get older, your rate won’t go up simply because you’ve aged.
Some states, such as Florida and Georgia, commonly use issue-age pricing for Medigap plans.
Attained-age means your premium is based on your current age, or the age you have “attained,” and it increases as you get older.
Premiums start lower when you first enroll but gradually rise each year as you age.
Rates may also increase because of inflation or other cost adjustments made by the insurer.
For example, a 65-year-old may pay a lower premium than someone who is 70, but that 65-year-old’s premium will likely rise each year as they get older.
Attained-age policies are the most common type of Medigap pricing structure in the United States.
Or call 1-800-995-4219 to speak with a licensed insurance agent:
Let’s say two people buy the same Medigap Plan G from the same company in the same state:
At first, Maria’s premium is lower. But by the time both are 75, Maria’s attained-age premium might have increased to $190, while John’s issue-age premium may have risen only slightly, to around $160.
This example shows that while attained-age policies can be less expensive initially, they often increase more over time.
Some insurers use a third pricing model called community-rated (or “no-age-rated”). With this method, everyone pays the same premium regardless of age. Rates can still increase due to inflation or company-wide adjustments, but not because you get older.
Community-rated policies are less common, though some states require insurers to use this method.
When choosing a Medigap policy, it’s important to consider not only your current budget but also how your premiums might change over time. A licensed insurance agent can help you review which pricing method applies to each plan in your area and explain how that might affect your long-term costs.
Christian Worstell is a health care and policy writer for MedicareSupplement.com. He has written hundreds of articles helping people better understand their Medicare coverage options.
Christian Worstell is a licensed insurance agent and a Senior Staff Writer for MedicareSupplement.com. He is passionate about helping people navigate the complexities of Medicare and understand their coverage options.
His work has been featured in outlets such as Vox, MSN, and The Washington Post, and he is a frequent contributor to health care and finance blogs.
Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. He currently lives in Raleigh, NC.
Stay up to date with Medicare and Medicare Supplement Insurance, for free! Enter your email for a comprehensive guide and important news and tips. We promise to never send you spam – just helpful content!
We've been helping people find their perfect Medicare plan for over 12 years.
Call now