Medicarebob

HOW DO INSURANCE COMPANIES SET PRICES FOR MEDIGAP POLICES? Each insurance company decides how it will set the price, or premium, for its Medigap policies. It’s important to ask how an insurance company prices its policies. The cost of Medigap policies can vary widely. There can be big differences in the premiums that different insurance companies charge for exactly the same coverage. The way they set the price affects how much you pay now and in the future. Medigap policies can be priced or “rated” in 3 ways: Attained Age Rated Issue Age Rated Community Age Rated Attained Age Rated premiums are based on your current age. This means your premium will go up as you get older. Premiums are low for younger buyers, but go up as you get older. They may be the least expensive at first, but they can eventually become the most expensive. Premiums may also go up because of inflation and other factors. Issue Age Rated premiums are based on your age when you buy the Medigap policy. This means pr