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Cobra Health Insurance Pa
The Cost Of Medigap Policies: Ways Of Pricing Policies Insurance companies have 3 different ways of pricing Medigap policies based on your age:

1 . No-age-rated (also called community-rated)



2. Issue-age-rated

3. Attained-age-rated 1. No-age-rated (also called community-rated) policies These policies charge everyone the same rate no matter how old they are.

Example*: Mrs. Smith pays the same monthly premium at each age plus any premium increases the company may charge because of Monthly Premium at Age 65 $155 Monthly Premium at Age 75 $155 Monthly Premium at Age 85 $155

2. Issue-age-rated policies The monthly premium for these policies is based on your age when you first buy the policy. The cost does not automatically go up as you get older. Your premium will be the same as anyone buying a policy for the first time at your age.

Example* : Mrs. Smith pays the same monthly premium depending on how old she is when the policy is bought by her. She also pays any additional premium increase the ongoing company may charge because of inflation. Buy Policy at Age 65 Monthly Premium at Age 65 Monthly Premium at Age 75 Monthly Premium at Age 85 $130 $130 $130 Buy Policy at Age 75 Monthly Premium at Age 65 Monthly Premium at Age 75 $ 1 65 Monthly Premium at Age 85 $ 1 65

The Cost Of Medigap Policies: Ways Of Pricing Policies

* Remember, all monthly premiums may change and go up each year because of inflation and rising health care costs.

2. Issue-age-rated policies Buy Policy at Age 85 Monthly Premium at Age 65 Monthly Premium at Age 75 Monthly Premium at Age 85 $ 1 95

3. Attained-age-rated policies The monthly premiums for these policies are based on your age each full year. These policies generally cost less at age 65, but their costs go automatically as you get older up.

Example*: Mrs. Smith buys the policy [url=][/url] at age 65, and pays higher monthly premiums as she gets older. She also pays any additional premium increases the company may charge because of inflation. Monthly Premium at Age 65 Monthly Premium at Age 75 Monthly Premium at Age 85 $115 $160 $200 Caution: In general, attained-age-rated policies are cheaper than issue-age-rated policies the first few years the policy is owned by you. However, rate increases for attained-age-rated policies are larger than rate increases for issue-age-rated policies usually. After a period of time, the premiums for an attainedage- rated policy will be higher than what the premiums would have been if you had an issue-age-rated policy.