Three Different Ways the Premiums of Medicare Supplement Plans Are Rated
Retirement opens up new and exciting opportunities for retirees. While some retirees may prefer living a comfortable and stress-free retired life, others may want to open a business or travel the world, which is on almost everyone’s bucket list. While retirement brings exciting opportunities, it also brings some confusion regarding choosing Medicare Supplement plans and picking the right one that suits your lifestyle needs. As mentioned above, every retiree has different plans, and the supplemental plan you pick should be able to inline with your retirement plans. One major factor you should understand when choosing a Medicare Supplement plan is how these supplemental plans are rated by your insurance. This article is for you, for anyone confused about different Medigap premium rating types.
Community Rated Medicare Supplement Plans Offered By Health Insurance Companies
As the name suggests, community-rated Medicare Supplement plans are rated by the policy premium price being charged to all the policyholders. This means the premium price of the community-rated supplemental plans offered by health insurance companies is not affected by the policy holder’s age or the overall health condition or medical history. The significant advantage of community-rated Medicare Supplement plans is that their premium price does not increase as you get older like it does for issue age rated supplemental plans.
With that being said, your annual premium payment for Medicare Supplement plans that are community rated might be affected by inflation and other economic factors.
Issue Age Rated Medicare Supplement Policies Offered By Private Companies
The issue age rated Medicare Supplement plans are the best Medigap Plans for people who want to pay pretty much the same premium throughout the duration of the policy. As the name suggests the Premium price of issue age-rated Medigap plans is rated based on your age at the time of your enrollment in the plan. While it is true that the premium of issue age-rated plans might be higher, people choose these plans simply because they lock their policy’s premium rate. So you can expect the premium of your issue age-rated Medigap Plan to stay the same, but some factors such as inflation can ultimately change the premium payments that you have to make annually.
Attained Age Rated Medigap Plans
Attained age rated Medicare Supplement plans are directly affected by your age as it increases. For example, if you enroll in Medigap attained age-rated plan at the age of 65 you can expect these plans’ premium prices to increase with each year as you age. With that being said, the premium cost for attained age-rated supplemental plans is low when the policy starts, and the premium cost increases over time. This makes attained age rated Medicare Supplement plans an excellent choice for people who want to start with a plan that costs less at the start of the policy. Like the premium costs of age rated plans, the premium of attained age rated plans also tends to change due to inflation and other factors. Many companies such as Aetna health insurance offer Medicare Supplement plans, and you can get in touch with agencies like The Benefit Link for more help when choosing a Medigap plan.