How do insurance companies set prices for Medigap Polices?
Each insurance company decides how it will set the price, or premium, for its Medigap policies. It’s important to ask how an insurance company prices its policies. The cost of Medigap policies can vary widely. There can be big differences in the premiums that different insurance companies charge for exactly the same coverage. The way they set the price affects how much you pay now and in the future. Medigap policies can be priced or “rated” in 3 ways:
- Attained Age Rated
- Issue Age Rated
- Community Age Rated
Attained Age Rated premiums are based on your current age. This means your premium will go 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.
Issue Age Rated premiums are based on your age when you buy the Medigap policy. This means 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.
Community Age Rated is generally when the same monthly premium is charged to everyone who has the Medigap policy, regardless of age. This means that your premium isn’t based on your age. Premiums may go up because of inflation and other factors, but not because of your age.
This is why it is so important to shop all of your options while looking for a Medicare Supplement Plan. Working with our company, Senior Healthcare Direct, we are licensed and appointed with over 30 of the top-rated carriers, not only can we can shop all your options, but we are Medicare insurance experts, we can assist you in making an educated choice when it comes to your healthcare.
Important Medicare Supplement Information:
You can shop your Medicare Supplement Plan all year long. The Annual Election Period, 10/15 through 12/07, does not apply to Medicare Supplement Plans. The letter of your Medicare Supplement Plan determines your coverage, so there is no reason to overpay. If you have a Medicare Supplement Plan G and you receive a premium increase, you can get that same Medicare Supplement Plan G for less money by shopping all the Carriers Plan G pricing.