What Are Medigap Pricing Rates?
If you want to add a Medicare supplement to your plan to cover more of your costs, then you might be looking at different Medigap options. While all these supplementary plans offer the same kinds of benefits, you might have some choice of pricing rate when you want to take out a policy depending on your state's regulations.
What are your options here?
Some insurers offer community-rated Medigap plans. Here, every qualifying person who takes out this coverage is charged the same cost for their plan.
So, for example, if you take out a community-rated option at the age of 65, then your costs will be the same as they would be if you waited until you were 70. However, this doesn't mean that the rates you pay for this option will always stay the same.
Premium costs might increase because of factors like inflation. However, they won't go up in line with your age. Your base premium stays the same as you get older; you'll get the same price quote no matter how old you are when you apply.
Issue/Entry Age-Rated Pricing
Issue/entry age-rated Medigap plans factor your age into their pricing rates. Your premium costs are calculated based on your age when you apply for coverage.
Typically, these initial rates increase with age. So, if you apply for an issue/entry age-rated option at the age of 65, then your premium costs will be lower than they would be if you applied at the age of 70.
These rates don't go up as you get older. They might increase in line with inflation and other external factors; however, your base premium will stay the same.
Attained Age-Rated Pricing
Attained age-rated Medigap plans also adjust rates on an age basis. However, these rates work on your current age at any time during your coverage. This pricing isn't fixed in the same way as issue/entry age-rated options.
Here, your initial premium cost is based on your age when you apply. Your costs will then increase as you get older; they'll usually go up once a year. The younger you are, the lower your rates will be; however, you do have to factor in future price increases.
You'll get a better deal on your Medicare supplement costs if you use an insurer who offers competitive premiums and who has a track record of low historical rate increases. To get started, contact insurers and ask about their Medigap plan services.