What it is
Issue age rated is one of the ways a carrier may set premiums for medigap plans. Your price depends on your age on the day the policy starts. It is sometimes called "entry age" pricing.
Once you are in, your age-based starting point generally stays fixed. That does not mean your premium never changes. Carriers may still raise rates for everyone in a group, for example because of rising healthcare costs or inflation.
Medigap plans are standardized by letter, such as Plan G or Plan N, so the benefits match from one carrier to the next. Price is where carriers differ most. The pricing method is one of the things that can affect how a premium looks over time. Massachusetts, Minnesota and Wisconsin standardize Medigap differently, so rules there may vary.
How it’s traditionally been approached
Carriers have traditionally used three main pricing methods: issue age rated (also called entry age), attained age rated, and community rated (also called no-age-rated). Each one handles age in a different way.
With attained age rated policies, the premium is tied to your current age and may rise as you get older. With community rated policies, age is generally not used at all. Each method has its own tradeoffs. A policy that starts lower may cost more later, and one that starts higher may stay steadier.
Which method is offered depends on the carrier and on your state, since some states limit or require certain approaches. Shoppers have traditionally compared quotes across several carriers and looked at both the starting price and how the carrier has handled rate increases. Confirm current rules with Medicare.gov, your State Health Insurance Assistance Program (SHIP), or a licensed agent.
How the right licensed agent may help
A Medigap agent may help you see which pricing method each carrier uses for the plan you want, such as Plan G or Plan N. An agent can often pull several quotes side by side. That may make the differences easier to understand.
A visit or call is usually a conversation. The agent may ask about your age, state, health history, current coverage, and the doctors you like to see. Be ready to say whether you are in your open enrollment period, since underwriting rules may depend on timing.
Good questions to ask include: Is this policy issue age rated, attained age rated, or community rated? How have this carrier's rates changed in the past? What happens if I move to another state? Will I need to answer health questions? Call 1-800-MEDIGAP for more information.
The bigger picture
Choosing a Medigap plan is about more than numbers. Many people want to feel settled about how future medical bills will be handled. Understanding how a premium is built may bring some peace of mind and make budgeting feel less stressful.
Worry about cost can affect rest, mood and even willingness to seek care. Taking time to ask questions and compare options may help you feel more confident in your choice. If you are also looking for care providers, Providers.plus may be one place to explore.
Keep in mind
- Issue age rated does not mean your premium will never go up. Rate increases can still happen for the whole group.
- No pricing method is best for everyone. The right fit depends on your age, budget, state and plans for the future.
- Medigap is not the only path. Medicare Advantage often has lower premiums, an annual out-of-pocket maximum and extra benefits, though it uses networks and may require prior authorization. Medigap offers any-provider flexibility nationwide wherever Medicare is accepted, but premiums are generally higher and drug coverage requires a separate Part D plan.
- Open enrollment, guaranteed issue and underwriting rules vary by state and change over time. This site is educational only and is not insurance, legal, tax or medical advice. Official information is at Medicare.gov.
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 does issue age rated Medigap mean?
Issue age rated Medigap means your premium is based on your age when you first buy the policy. The plan does not use your increasing age to raise the price later. Premiums can still change if the carrier raises rates for everyone in the group.
Is issue age rated Medigap cheaper than attained age rated?
Not always. Issue age rated policies often start higher than attained age rated policies for the same age, but attained age policies may rise as you get older. Which costs less over time depends on the carrier, your state, and how rates change, so comparing quotes may help.
Will my issue age rated premium ever go up?
Yes, it may. Your age-based starting point generally stays fixed, but carriers can raise rates for a whole group of policyholders. Ask the carrier or a Medigap agent how rate increases have been handled in the past.
What is the difference between issue age, attained age and community rated Medigap?
Issue age uses your age at purchase. Attained age uses your current age, so the premium may rise as you age. Community rated generally does not use age at all. Availability depends on your state and the carrier.
Can I get issue age rated Medigap Plan G or Plan N?
Some carriers may offer Plan G or Plan N with issue age rated pricing, depending on your state. Both are sold to people newly eligible for Medicare. Ask for the rating method when you request quotes.
Who can help me understand issue age rated Medigap plans?
A licensed Medigap agent may help you compare pricing methods and carriers. Your State Health Insurance Assistance Program (SHIP) and Medicare.gov are also good sources. Call 1-800-MEDIGAP for more information.
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.