Haha..OK - here it is, straight from the horse's "mouth".
Gads..there's always more to learn about these gov't tangle-foots.
Medigap is supplemental health insurance that Original Medicare recipients can purchase from private insurance companies to help cover some of the costs
www.medicare.org
(Emphasis mine)
Quote:
Do The Costs of Medicare Supplement Plans Increase With Age?
Whether your Medicare supplement insurance policy premiums increase as you get older depends on the type of cost rating method you choose. If you choose a
Community Rated or No-Age Rated plan, you pay the same monthly premium regardless of your age. Everyone pays the same amount for their monthly premium.
With an
Issue-Age Rated plan, your premium is based on your age when you purchase, or are issued, the policy. Generally, premiums cost less when you are younger. Premiums for these types of policies do not increase with age.
If you opt for an
Attained-Age Rated policy, your premium will be based on the age you have attained. In other words, your age at the time of purchasing the policy. With this type of policy, your premium increases as you get older. While the premium may be less than other types of policies initially, premium prices increase with age making them more expensive than other types ultimately.
Attained-Age Medigap Plans
If you’re
eligible for Medicare and have an Original Medicare plan (
Part A and
Part B), not all of your
out-of-pocket costs are covered by Original Medicare. Depending on your healthcare expenses, you may consider buying a Medicare supplemental insurance plan, also called
Medigap. These plans help pay for some out-of-pocket costs, such as deductibles,
coinsurance and
copays.
Medigap supplemental plans are offered by private insurance companies regulated by the Centers for Medicare and Medicaid Services (CMS). Premiums vary between different plans based on coverage, the plan rating system and other factors. Medigap plan pricing is based on three main rating categories or formulas – attained-age, issue-age and community-rated.
If you’re considering buying a Medigap supplemental plan, it’s important to understand the differences between attained-age vs. issue-age, as well as community-rated plans. The rating model affects your premiums when you sign up and future price increases.
In this article we’ll review the differences between the three ratings and how to choose the best Medigap plan for your needs.
Attained-Age Plans
Attained-age rating models are the most frequently used by Medigap insurance providers. This rating system for calculating premiums is based on your age when you sign up for the plan. The younger you are at enrollment, the lower your premium. But your premium rates increase as you get older.
For example, if you’re 65 years old, your premium for a particular Medigap plan might be $130, but the same plan may cost $170 when you’re 75 years old. Generally, rates increase by a small percentage either annually or by a set timeframe. Rate increases are approved by state health insurance agencies.
Attained-age plans may seem attractive when you’re younger because of their low premiums, but they may become expensive over your lifetime. It’s important to keep this in mind when shopping for a Medigap plan.
Some states such as
Massachusetts,
Minnesota and
Wisconsin have different Medigap standardized plans and coverage guidelines. If you live in these states, you can check with your State Health Insurance Assistance Program (SHIP) or Medigap plan provider for specific coverage and cost information.
Issue-Age Medigap Plans
Issue-age-rated plan premiums are based on your age when you apply for coverage. Your premium rate will be lower if you sign up when you’re younger than if you wait until you’re older (at age 65 versus 75, for example). These rating plans also generally increase rates annually, but rate increases are not dependent on your age in the future like they are with attained-age premiums. Small percentage increases are based on inflation and other health cost factors.
Not every state offers issue-age-rated plans. Depending on where you live, you may not be able to buy an issue-age-rated plan. States offering issue-age Medigap plans include Arizona, Idaho, Georgia and Florida. You can check with Medigap plan providers in your state to find out if they offer issue-age-rated plans.
This type of plan is less expensive than attained-age plans if you sign up when you first become eligible to purchase a Medigap plan. But in comparison to attained-age-rated plans, issue-age-rated plans start with higher premiums than attained-age-rated plans.
If your state offers issue-age-rated plans along with attained-age-rated plans, compare premium costs of attained-age vs. issue-age Medigap based on future rate increases, not just the rate when you purchase.
Community-Rated Medigap Plans
Community-rated Medigap plan premiums are based on where you live. Everyone within a certain geographic area pays the same premium for the same Medigap plan regardless of individual age. So, if you and your neighbor buy the same Medigap plan, your monthly premium will be the same even if you’re 70 years old and your neighbor is 80 years old.
Only a few states offer community-rated Medigap plans. They include
Maine,
Vermont,
Massachusetts,
Connecticut,
New York,
Arkansas,
Minnesota and
Washington. States that don’t offer community-rated plans can charge you a higher premium based on your age depending on if they offer attained-age or issue-age-rated plans and your age at enrollment.
Typically, community-rated plans offer the lowest cost premiums over time as you age. But rates may be different depending on if you live in a rural versus urban location and other factors.
Do Medicare Supplement Premiums Increase With Age?
Yes, your Medigap premiums may increase with age in some cases. Premium cost increases depend on the rating type for the plan you choose. Attained-age-plan premiums increase as you get older, but also with inflation and for other reasons.
Issue-age-rated Medigap plans have higher premiums if you join when you’re older. These plans are less expensive if you join when you’re younger, but premiums may still be higher than attained-age for younger ages. Premiums also increase with inflation and health costs.
Community-rated plans aren’t based on your age. Cost increases depend on where you live (urban or rural), inflation and other causes.
When deciding between attained-age vs. issue-age or community-rated plans, there are several points to consider.
They include:
- your overall medical needs.
- plan premiums and benefits.
- your age.
- the plan provider reputation.
- premium cost rate projections.
Different states have different levels of protection for Medicare beneficiaries interested in buying a Medigap plan, including
guaranteed issue protections. These rights ensure a Medigap insurance provider will not deny you a plan if you meet certain guidelines. They also guarantee coverage for pre-existing conditions and won’t increase your premiums unreasonably due to your health conditions.
The easiest time to join a Medigap plan is during your six-month Medigap Open Enrollment Period, which begins after you enroll in Medicare Part B. Medigap plan providers can deny you coverage if you have pre-existing conditions after this initial enrollment period.
For example, if you drop your Medigap attained-age-rated Medigap coverage due to high cost, you may not be able to buy another Medigap plan unless your state has guaranteed issue rights or you meet other qualifying circumstances. Connecticut, Maine, Massachusetts and New York have guaranteed issue rights that require all Medigap providers in the state to offer policies at least once per month or continuously throughout the year.
This is why it’s important to understand the rating category to estimate your long-term premium costs before signing up with a Medigap plan.
Differences between Medigap supplemental plan categories attained-age, issue-age and community-rated plans determine what you pay for your plan premiums.
www.gohealth.com
3 things.
1) live in MS and Issue Age not available here so never heard of it, just to name one of some 40+ states that don't
2) Community based while available (I hear ads on the radio) is not accepted by my local medical facility.
3)Attained age goes up every year based on age