Medigap Pricing Systems: How Do They Work?

Understanding Attained-age, Issue-age, & Community Rated Medigap Pricing

by Katie Banks+ on Apr 01, 2018 | 4 Comments

There are three federally approved pricing systems for Medicare Supplemental (AKA Medigap) plans. It is up to the company who is offering the Medigap coverage to select the pricing system to help cover the costs of Medicare.

3 Medigap Pricing Systems

1) Attained-age Rated:
Attained-age Medigap insurance policies are those that feature premiums based on your current age. They are less expensive when you are first enrolled at age 65, but they will increase each year as your age increases, as well as inflation and other factors will increase your rate. Most Medigap plans are priced using this attained-age system.

2) Issue-age Rated
Issue-age rated Medigap insurance policies premiums are based on your age when you purchase the policy. People that purchase an issue-age rated plan when they are 65 will pay less (and continue to pay less) than others who purchase the same issue-age rated plan at age 70. These plans will not increase as you get older, however inflation and other factors may increase your rate.

3) Community Rated:
Community rated Medigap insurance policies charge the same monthly premium for all members, regardless of their age or when they sign up.  Identical rates are determined for everyone within a certain area no matter your age. Again these rates will go up with inflation and other factors

Do the Medigap Pricing Systems Matter?

All three pricing systems have strengths and weaknesses but the truth is the vast majority of plans are Age Attained. Some plans are officially listed as Community Rated but they offer a discount to younger members so they behave similarly to Age Attained plans.

Most Important Medigap Pricing Factor

Medigap’s age-rating is the most important factor. What this means is: some plans increase your cost each year until you hit 90 years old, while others stop increasing the plans cost at 75 years of age. You could end up paying a lot more on some plans over time than others.

If you want help comparing the pricing programs and understand how much these plans will cost click here to get an instant Medigap quote.

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Reader Comments and Questions

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By Larry on November 06, 2018

I'm 67 and planning to work till I am 70. I have good company insurance. Don't need medicare now. How much will my premium go up if I wait till 70 to enroll?

As long as you have credible coverage via work, you are in good shape. Prices for Medicare supplement plans tend to go up each year but you would not avoid these increases by signing up in advance. You best bet is to stay with your work insurance and purchase Medicare insurance once you retire and lose your credible coverage. We can help you quote and apply for coverage when the time is right.
-Michelle from

By Walter on October 24, 2018

I have had a medigap plan since I was 57 years old, I was on dialysis at that time. After a kidney transplant I have not had dialysis in over 5 years. I will be 65 in Feb. Will my rates go down then, they are up to over $600.00 a year now and are with Blue Cross Blue Shield?

Your rates should go down!!! You can also apply to any plan on the market and you will be guarenteed to be approved. Please contact our team at 800-930-7956 and we can help you research and apply for a plan.
-Michelle from

By Linn on October 21, 2017

How can I find the pricing policy for medigap policies while comparing plans without having to call each company individually?

Linn, To get an instant quote from top insurance providers in your area, visit our quote page. Most of these will be attained age plans. If you want to know if there are any other pricing plans in your area, give us a call.
-Chris from

By Ron Kaplan on August 09, 2015

For Medicare Supplement plans: How do I find out which companies use attained age pricing, which use community based pricing, and which use issue age pricing?

Most Medigap policies are age-attained (even though they can be listed as issue age and community rated) . Let me explain.
While certain companies offer community rated plans, they will offer a 30% discount when you first enroll at 65, and then close that discount as you age, as well as each year the plan will increase for inflation. The most important thing you want to look for when choosing a plan is to see what the cost is when you first enroll, and at what age the plan stops increasing. Hope this helps.
-Amy from

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