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Insurance Pipeline Inc. Demystifies the Differences Between Attained-Age, Issue-Age, and Community Rated Medigap Policies

man writing on paperMedigap policies can be an excellent option for seniors who are on Medicare and are looking to supplement their additional medical costs. Insurance Pipeline Inc. is a national health insurance agency founded by Corey Shader that helps match seniors with insurance plans that meet their needs and financial goals. A common area of concern for seniors is deciding between the different types of Medigap policies. In this article, Insurance Pipeline Inc. breaks down the difference between the three different types of Medigap policies to help you choose the policy that is right for you.

What is Medigap?

The Original Medicare coverage only pays for about 80% of approved costs, which can be significant if expensive medical treatment is required. Medigap is a Medicare Supplement Insurance, sold by private companies, that helps to pay for some of the health care costs that Medicare does not cover—such as copayments, coinsurance, deductibles, and care when you travel outside of the U.S. To qualify for a Medigap policy, you must have Medicare Part A and Part B, and you will pay a monthly premium to a private insurance company for Medigap in addition to the monthly Part B premium paid to Medicare.

One of the most important factors to research when selecting a Medigap plan is historical rate increases. Selecting a company with historically low rate increases and a competitive premium can help you keep costs low over time, regardless of the type of Medigap plan you choose.

What are the Medigap Options?

Medigap policies are rated (i.e., priced) in three ways: attained-age, issue-age, and community. Generally speaking, issue-age-rated and community-rated policies are advised because they do not cost as much as attained-age-rated policies as you get older. It is important to note that all Medigap options will be subject to increased premiums due to inflation and other factors.

Attained-Age-Rated. Attained-age-rated policies are cheaper at age 65, but their prices increase as you age. The premiums for attained-age-rated policies tend to be the least expensive option when initially comparing your options. Still, they can eventually become the most expensive option as you age. In addition to increasing because of your age, premiums will also fluctuate due to inflation and other factors.

Issue-age-rated. Issue-age-rated policies charge a rate based on your age when you first buy your policy, without increasing automatically as you age. While younger people will generally pay more for an issue-age-rated policy than they would for an attained-age policy, people who buy an issue-age-rated policy at a younger age end up paying a lower premium than people who buy an issue-age-rated policy at an older age. Over time, the premium will increase due to factors such as inflation, but they will not increase due to your age.

Community-Rated. Community-rated policies charge everyone living in the same area the same rate, regardless of age. Generally speaking, younger beneficiaries end up paying more upfront when enrolling in a community-rated policy than if they were to enroll in an attained-age-rated policy. Similar to the issue-age-related policy, prices increase due to community factors, such as inflation.

About Insurance Pipeline Inc., a Health Insurance Agency Founded by Corey Shader

Insurance Pipeline Inc. is a health insurance agency specializing in senior healthcare products and solutions. The company, initially founded and run by Corey Shader, is now one of the top senior healthcare Agencies in the nation. Insurance Pipeline provides a wide variety of solutions to meet every need and budget — primarily focusing on Medicare Supplement Plans as well as Medicare Parts A, B, and D.