Issue Age, Community Rated, & Attained Age Medigap Pricing Explained

How do Insurance companies set pricing for Florida Medigap Plans?  Here is an explanation of the three types of pricing:florida-medicare-plans-logo

1.  Issue-Age:  Medigap premiums are based on the age that you purchase the policy.  For example, Mrs. Williams purchases a Florida Medigap plan N couple7at age 66 for $152/month.  At age 68 her monthly premium is still shceduled to be $152 as will it be for age 70 and so on.  If Mrs. Williams buys a medigap plan N at age 70 her price may be $166/month but not sheduled to change in price each year.

2.  Community-rated:  Medigap premiums are generally the same price for everyone who has the medigap plan regardless of age.  For example, Mrs. Williams buys a Florida Medigap plan G at age 65 and pays $164/month.  Mr. Jones buys the same Florida Medigap plan G at his age of 72 and also pays $164/month.

3.  Attained-Age:  Medicare Supplement (Medigap) premiums are based on your current age and are scheduled to go up each year with your age (Happy Birthday!).  Attained-Age plans may start out as the lowest cost when comparing but could end up the highest monthly cost as you get older.  For example, Mrs. Williams buys a Florida Medigap plan N at age 66 for $145/month.  At age 67 the plan is scheduled to rise to $149/month and at age 68 to $156.  Prices are going up each year you have the policy as scheduled.

These different types of pricing Insurance companies use to set prices can be a factor in your decision in choosing a medigap provider.  As always consult an expert in the different plans, options and prices.  See link below for further information on How insurance companies set prices for Medigap plans.

How Insurance Companies Set Prices for Medigap Plans


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