Attained-Age Rated Pricing For Medigap Plans

By: Thomas Wright
Published: Wednesday, February 20 2019
Last Updated: 3 years ago

What is Attained-Age Rated Pricing?

Attained-age rated pricing is a way to refer to plans that adjust your premiums based on your increase in age. It's also the most common pricing method for policies in the US, giving most of the population its healthcare. As you grow older, your plan will grow at a certain rate each year, getting especially more expensive when you reach your seniority.

Don't be fooled by the surface level, though. It's easy to assume that attained-age rated Medigap plans (or attained-age rated Medicare Supplement plans) are more expensive than plans that offer you a steady rate, but this is not necessarily true. In fact, you might even be able to save more money than you would otherwise.

How This Cost Model Works

The cost model surrounding attained-age rated Medigap plans starts with a basic premise. When you purchase your policy, you'll be assigned a price based on your age. It's often more effective to buy into attained-age rated Medicare Supplement plans early on, as this is when it will be cheapest due to your age.

From there, your plan will continue to raise each year to adjust with your age. The rate at which the price increases will also get larger as you get older. However, this isn't the only way in which your Medigap premiums increase.

For example, inflation also plays a huge role in how much you pay for your healthcare, often driving up the price of plans. Since healthcare inflation is an issue regardless of which type of payment policy you choose, everybody purchasing health insurance in the US must reconcile with it.

Example To Illustrate

For those interested in seeing how Attained-Age plans compare to other types of models, here is a chart from The Health Exchange Agency that highlights the differences.

The Benefits of Attained-Age Rated Medigap Plans

Despite what we've mentioned in this article thus far regarding inflation and price increases, attained-age rated Medigap increases aren't necessarily a bad thing. For some, it's even possible to save more money as your rate increases.

There are a few benefits to be had from opting to go with attained-age rated plans, but the largest reason is that they are incredibly common. This might not seem like a significant factor, but it is. With increased competition between companies, there is more pressure for Medigap providers to push lower prices, resulting in affordable plans for consumers.

This can also result in attained-age plans being more affordable when compared with other pricing models over time, making it essential to familiarize yourself with comparisons to other models beforehand and get a professional quote. Even if another policy payment plan looks to be less expensive than an attained-age one, there might be hidden costs between the fine print, so you should enlist the help of a professional.

The Potential Drawbacks of Attained-Age Rated Pricing

It should be noted that enrolling in an attained-age rated policy doesn’t necessarily mean that you'll always be saving money. This is largely due to which age you sign up for your Medicare Supplement plans. For example, if you purchase your Medigap a few years into your Medicare eligibility, you’ll pay both more up front and see greater premium increases.

Other Cost Factors for Medicare Supplement Plans

The type of plan that you are looking into is often also influenced by the primary form of Medicare you have. We recommend you familiarize yourself with your plan to make sure that there are no limits on supplemental care that might drive your Medigap costs up.

Find Attained-Age Rated Plans with FirstQuote Medicare

Are you interested in diving into the healthcare market to find the plan that is right for you? Based on where you live and what the market is like, you can potentially save great amounts of money by investing in an Attained-Age plan as opposed to a more consistent, stable pricing package. However, the only way that you can know for sure is by crunching the numbers with a true professional.

At FirstQuote Medicare, we allow you to do just that, providing you the resources to know which Medigap plan is really right for you. We offer quotes on a variety of different plans, allowing you to tailor your inquiry specific to your situation.

With FirstQuote Medicare, you'll be able to ensure that you're making a well-informed decision regarding your healthcare so when the time comes, you'll know exactly which of the attained-age rated Medicare Supplement plans to choose. Get your quote from FirstQuote Medicare today!