3 Key Factors Insurance Companies Use To Determine Medigap Insurance Premiums


What Kinds Of Premiums Could You Expect To Pay?

Medicare Supplement insurance plans have premium plans like any other insurance plan. Private insurance companies offer Medigap plans, but every plan’s cost will differ. A plan’s cost in one city may not be the same in another city, but the benefits they offer will be about the same. The private insurance company is the one that sets the plan premiums based on three rating techniques:

  • Issue-Age Rated – The rates are set on the age when the first Medigap policy was purchased. The premiums are usually lower for people who are younger but do not rise as they age.
  • Attain-Age Rated – These rates are set on the current agent and rise as a person gets older. Premiums are low for the younger buyers, but they will see price increases as they age.
  • Community-Rated – A person will be charged the same monthly rate no matter what their age is, and the rates stay the same even as they get older. However, inflation will cause the rates to increase.


When you buy a Medigap plan, you will need to pay its premium on top of the Original Medicare premiums. If you have worked for 10 years and paid Medicare taxes, Part A does not have a premium. However, people who get part B will have to pay a monthly amount.