While the premiums for the different types of Medigap Policies (also known as Supplement to Medicare Policies) vary, there are three different ways that a policy may be priced or “rated”.
Community Rated (No-Age Rated)
The premium for this type of policy does not change based on age. Everyone who has this policy will be charged the same premium. The premium will not increase as you age (though it may increase for other reasons, such as inflation).
Issue Age Rated
The premium for this type of policy is determined by the age at which the policy is purchased. The older you are when you purchase the policy, the higher the premium will be. Once purchased, the premium will not increase due to your age (though it may increase for other reasons, such as inflation).
Attained Age Rated
Premiums for this type of policy are based on your current age. The premium will increase as you age, so your premium will be lower when you first purchase it, but will increase each year.
When shopping for and comparing policies, you’ll want to be aware of how each policy is priced and whether or not the premium will increase based on age or remain relatively constant.