What it is
Medigap, also called Medicare Supplement insurance, is sold by private companies. It helps with some costs that Original Medicare does not pay. Each company decides how it sets prices, within what your state allows.
Community rated means everyone who has the same plan from the same company pays about the same premium, no matter their age. Some people call this "no-age-rated." Premiums may still change over time, but not because you got older.
Attained age means your premium is based on your age now. As you get older, the premium may go up. A third method, issue age, sets the price from the age you were when you bought the plan. Which methods are offered depends on your state and the insurer.
Massachusetts, Minnesota and Wisconsin standardize Medigap differently from most states. Rules in your state may change how these pricing methods apply.
How it’s traditionally been approached
Many people have compared Medigap plans by looking at the premium on the day they enroll. Attained age plans often look less costly at that first glance, especially for people newly eligible for Medicare.
Others have looked further ahead. They have wondered how a premium might feel in later years. For them, community rated or issue age plans may seem more predictable, because age is not a reason for increases.
Either approach can be reasonable. Premiums on all three types can also change for other reasons, such as rising medical costs. That is why people often ask for a rate history from the insurer. Neither method is right for everyone.
How the right licensed agent may help
A Medigap agent is a licensed professional who may explain which pricing methods are used in your state and by which companies. They can often show side-by-side quotes for the same plan letter, such as Plan G or Plan N, so you can compare like with like.
A visit is usually a conversation. The agent may ask about your age, your state, your health, your budget and which plan letters you're considering. You don't have to decide on the spot.
Good questions to ask: Is this plan community rated, issue age or attained age? How have this company's rates changed in past years? What happens if I want to switch later? Could health questions apply to me? Call 1-800-MEDIGAP for more information.
The bigger picture
A health insurance premium touches more than your budget. Worrying about a bill that may grow can affect sleep, stress and how freely you seek care. Knowing how your premium is likely to behave may bring some peace of mind.
Still, no one can see the future. Some people value a lower cost today. Others value steadier pricing over time. If you're also looking for providers who focus on whole-person wellbeing, Providers.plus may be a helpful place to explore.
Keep in mind
- Pricing methods, open enrollment, guaranteed issue and underwriting rules vary by state and change over time. Confirm current rules with Medicare.gov, your State Health Insurance Assistance Program (SHIP), or a licensed agent.
- Plans C and F are available only to people who became eligible for Medicare before January 1, 2020. Newly eligible people may look at Plans A, B, D, G, K, L, M and N, plus high-deductible Plan G.
- Changing plans later may involve medical underwriting in some situations, so approval is never guaranteed.
- 1-800-MEDIGAP is an independent, privately run educational site. It is not Medicare.gov, CMS, Social Security or any government agency, and this page is not insurance, legal, tax or medical advice.
Take the next step
- Talk with a Medigap agent ↗Jeff Cline on contacts.plus — a person, not a call center.
Not sure where to start? Answer a few gentle questions and choose who you’d like to hear from.
Call 1-800-MEDIGAP for more information
Frequently asked questions
What is the difference between community rated vs attained age Medigap?
Community rated Medigap charges about the same premium to everyone with the same plan, regardless of age. Attained age Medigap bases the premium on your current age, so it may rise as you get older. Your state and insurer determine which methods are available.
Is community rated Medigap always cheaper?
No. Community rated plans often start higher than attained age plans, but they may not rise because of age. Over time the comparison can change, so it helps to look at both the starting premium and the company's rate history.
Do attained age Medigap premiums go up every year?
They often change as you age, and they can also rise for other reasons like medical cost trends. The timing and size of changes vary by company and state. A Medigap agent may help you understand how a specific insurer handles this.
What is issue age pricing in Medigap?
Issue age pricing sets your premium based on the age you were when you bought the plan. It does not rise because you get older, though it can still change for other reasons. It sits between community rated and attained age in how it works.
Do Plan G and Plan N use different pricing methods?
The pricing method is set by the insurer and state, not by the plan letter. Plan G and Plan N from the same company may use the same method. Ask each insurer how a particular plan is rated.
Can I switch from an attained age plan to a community rated plan?
Sometimes, but it may depend on your state and health. Outside open enrollment or guaranteed issue periods, an insurer may ask health questions and could decline. Confirm current rules with Medicare.gov, your SHIP, or a licensed agent.
Educational resource. 1-800-MEDIGAP shares general information and connects people with independent licensed agents. It is not professional advice. Talk with a qualified professional about your own situation.