Do Medicare Supplement premiums go up with age?
Yes, Medicare Supplement (Medigap) premiums often increase with age, but whether your rate goes up depends on the specific Medigap pricing method your insurance company uses.
Insurance companies use three different pricing models to set their monthly rates.
The Three Medigap Pricing Models
- Attained-Age-Rated Plans: Your monthly premium starts lower when you are younger and increases each year as you get older. This is the most common pricing structure.
- Issue-Age-Rated Plans: Your premium is based on your age when you first buy the policy. The price does not increase simply because you have another birthday.
- Community-Rated Plans: Every person in the plan pays the exact same monthly rate in your area, regardless of their age. An older beneficiary pays the same price as a younger enrollee.
Why Rates Might Still Increase
Even if you choose an issue-age or community-rated plan that protects you from age-based hikes, your monthly bill can still go up. Companies raise rates for everyone in a policy pool due to:
- General medical inflation
- Rising healthcare costs in your area
- Changes in the health status of the overall local community
You can compare how different choices affect average pricing through the Medicare Supplement guide.