Do Medigap Premiums Increase With Age?

Medicare Benefits Solutions

Nov 11, 2020

Medigap is a supplemental insurance product that many Original Medicare recipients rely on in order to cover gaps in coverage. These gaps may be caused by things like coinsurance or copayment costs, and Medigap often covers these along with covering some deductible requirements. This type of coverage is not Medicare coverage and does not pay for medical care. Instead, a Medigap, or Medicare Supplement policy helps defray costs incurred by using Original Medicare.

Do Medigap Premiums Increase With Age?

If you’re like most people, you want to know ahead of time what you can expect to pay for healthcare and related expenses. Although you can’t always plan for healthcare emergencies, you can plan out your insurance costs. These costs may simply include your monthly premium costs for Medicare, but in others, you may be faced with unexpected costs for multiple doctor visits and prescriptions if you are hit with a sudden illness. The odds of this happening rise with age, so knowing whether Medigap premiums also rise with age is important.

To get the answer, you’ll need to take a look at what type of policy you have. One type of Medigap plan has a cost-rating method that is community-rated. These plans charge the same amount to everyone in the plan group regardless of age, so premiums will not go up over time. Another type of plan that is similar is an age-issue plan. These types of plans base their premiums on the age you were when you purchased the coverage, meaning they also do not see increases in premiums with age.

Finally, you may run into providers that offer attained-age policies. The premiums with these types of Medigap plans typically increase with age, but the benefit is that they offer lower premiums in the beginning. Generally, your initial premium costs are based on the age you have attained when you first enter into the policy agreement. Over time, the premium increases, but your coverage will likely stay the same. Keep in mind that while lower premium costs are a selling point for these types of plans, the goal is to have predictability in your costs, so make sure you fully understand what you may or may not be paying years down the road.

Talk to Your Medigap Provider

Of course, the only way to be sure you won’t see increases in your Medicare Supplement policy premium as you age is to speak with your issuing provider of your Medigap plan. Plan providers for Medigap may set their own rules as they are private providers not tied directly to Medicare coverage regulations, and each plan may have its own guidelines related to age and plan premiums. As such, your plan provider may have certain limitations or you may have certain contractual obligations to fulfill to keep your coverage current as you age.

Talk to Your Doctor

You should also involve your doctor’s opinion in your decision-making. He or she can advise you as to your risk of facing a medical concern in the future based on your medical history, lifestyle choices, family history of medical concerns and more. If you’re more likely to face a serious medical concern in the future, knowing this information could potentially influence your decision as to what type of Medigap policy to purchase.