Community Rated – "No Age" Pricing

How does Community Rated Pricing work?

Community-rated pricing, also known as "no-age-rated" pricing of Medicare Supplement plans means that the same monthly premium, or price, is charged to everyone who has the Medicare Supplement policy, regardless of your age. Premiums will not increase due to your age. However, prices may go up due to other factors, including inflation.

Example of how this type of pricing works

The following example shows how Community-rated pricing of a Medicare Supplement plans works for two different individuals:

Mr. Smith is age 65. He buys a Medicare Supplement policy and pays a $165 monthly premium.

Mrs. Perez is age 72. She buys the same Medicare Supplement policy as Mr. Smith. She also pays a $165 monthly premium because, with this type of Medicare Supplement policy, everyone pays the same price regardless of age.

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 Community rated pricing so it is important to ask how an insurance company prices its policies before applying.