How Medicare Supplement Rates are Set

How Medicare Supplement Rates are Set

Many Seniors wonder how Medicare Supplement prices are determined.  The truth is,
Insurance companies set their own monthly rates for Medigap policies. There are three
basic ways a Insurance company might choose to establish their rates:

Community based rates:  The rates are the same for everyone no matter how old you are.
The monthly premiums are never affected by your age. They are affected by inflation and
other community factors.

Issue-age based rates: The premiums are based off your age at the time you purchase the
 policy. This means everyone the same age will pay the same amount in premiums.

Attained-age-based rate: The premiums are based on your age and increase as you grow older.

In general, Medicare supplement policies vary greatly in premium rates. You will find different
rates for the same policy with different insurance providers.  So make sure you compare pricing
before choosing a medigap policy. When comparing make sure you are comparing the same
policy, like plan F, at 2 different companies.

Also, whatever the premiums are based on you are almost guaranteed that they will increase each
year. Some Insurance companies raise Medicare Supplement rates more often than others do, so
it is wise to investigate each insurance company before choosing to purchase a policy.


Sincerely,
Tom Caress
medicareplansdirect.net
760-413-9749