Typically your premium for Medicare supplement plans are decided with your preliminary decision of which supplement plan you pick up for yourself and of course the company from where you take it. Now from company to company the premium rates differ for a same plan. Since supplement plans are particularly standardized by the federal government, you don’t need to panic about differences of benefits, but the premiums vary with insurer, and the factors they take into consideration for defining their premium scales include the following factors.
Issue Age Rated
Though the popularity of this type of rating for policies is declining, however in spite of that there are few states which are still clings to this rating type. As per this, when you enroll for the best Medigap plans for 2018, your age on the initiating date of the plan is locked. While the plan rates might increase with inflations, they seamlessly increase accordingly as you age.
This rating type of supplementary plans allows every one regardless of their age, pay the same amount of premium and this is the reason why this plan type is termed as community rated. However, the premium amounts are subject to changes and increase owing to influencing factors as well as inflation. While once again even this type of pricing trends are not much common these days, yet even when you spot one you will find them to be a bit over the edge expensive for beneficiaries below the age of 75 and the rates to be in competitive edge for those above 75.
Attained Age Rated
There are few states which particularly mandate issue age rating for supplementary plans, however apart from that attained age rated Medicare supplement plans stand out to be the most popular until now. Initially when you sign up for the policy the premium is scaled as per your current age at that time. Now with every passing year as you age, the premium scales will also mature accordingly with a little percentage of increase. But this does not mean that whenever there is an increase in the premium amount it is only due to age, apart from age related increase in premium amount every year, inflations and other influencing factors will also be involved for the overall increase in the premiums.
Therefore, when you plan to make considerations for your new Medicare supplement plans, Do pay heed the criteria your insurer has picked up for premium scaling.