Medicare Supplement Quotes - Issue Age vs. Attained Age Policies
Seniors considering purchasing a Medicare supplement policy can be overwhelmed by the substantial choices available to them. There are traditional plan A through J, Medicare advantage plans as well as prescription part D coverage to consider. This article will examine the differences between traditional Medigap issue age and attained age polices. Request a Medicare Supplement Quote
Medicare Supplement Issue Age (Community) Plans
Senior consumers can purchase plans A through J based on their age at issue. This means the insurance provider cannot increase premiums for the insured as he or she grows older. In essence, the insured is locking in a rate based on his age when the policy is issued. These plans are sometimes referred to as community plans.
Consumers, however, should be aware that the insurance provider can raise premium rates by class for all policies issued in their state. An insurance company might increase rates due to significant claims experiences they have encountered.
Traditionally, issue age plans will be more expensive to the insured at issue. In the long run, the insured hopes to pay less in premiums by not experiencing rate increase with every birthday. Popular companies offering issue age plans include Anthem, Bankers Life and Fidelity, and United Health Care.
Medicare Supplement Attained Age Plans
Attained age plans will automatically increase in price as the insured grows older. Most companies will increase the insured’s rates every year while others will increase rates based on age bands.
Prices can also increase based on changes in the Medicare program as well as increases in health care costs affecting the insurance provider. Attained age plans will be less expensive to the insured at onset. The insured is hoping that less expensive premiums in the beginning will offset future increases when compared with an issue age plan.
There are several carriers offering supplemental plans that will increase with age including: Anthem, Aetna, Mutual of Omaha – United World, United of Omaha Life, Golden Rule and others.
Which Plan is Right for You?
It is difficult to predict which plan might be most beneficial to the consumer. It usually comes down to personal preference. Some consumers will like less expensive plans from the onset while others will want to lock in a more stable rate. It is worth noting that many companies offer discounts to consumers applying during their open enrollment window on their 65th birthday.
When choosing a supplemental insurance provider, it is wise to ask about past premium increases. There is no absolute method of predicting future rate increases, but past experiences can be a good barometer for what may be ahead.
