Attained Age Pricing for Medigap Plans
How does Attained Age Pricing work?
Under attained age pricing, the price you pay for your Medicare Supplement policy based on your current age. Unlike plans based on community rated pricing or issue age pricing, your premium goes up as you get older. Although Medicare Supplement plans based on attained age pricing may be the least expensive initially, they can be the most expensive of the 3 pricing models. Also, prices of the Medicare Supplement plan may also go up due to other factors including inflation.
Example of how this type of pricing works
Mrs. Anderson is age 65. She buys a Medicare Supplement policy and pays a $120 monthly premium.
- At age 66, her premium goes up to $126.
- At age 67, her premium goes up to $132.
- At age 72, her premium goes up to $165.
Mr. Dodd is age 72. He buys the same Medicare Supplement policy as Mrs. Anderson. He pays a $165 monthly premium. His premium is higher than Mrs. Anderson's because it's based on his current age. Mr. Dodd's premium will go up every year.
- At age 73, his premium goes up to $171.
- At age 74, his premium goes up to $177.
Source: Information from the official government handbook published by the Centers for Medicare and Medicaid Services: Choosing a Medigap Policy 2010
Not all insurance companies price Medicare Supplement Insurance plans based on attained age pricing so it is important to ask how an insurance company prices its policies before applying.
