Do Medigap Premiums Increase With Age? A Comprehensive Guide

If you’re considering enrolling in a Medicare Supplement Insurance plan, commonly known as Medigap, one of the crucial factors to consider is the potential increase in premiums as you age. Medigap plans are designed to fill the gaps in Original Medicare coverage, but their costs can vary significantly depending on the type of rating system used by the insurance company. In this article, we’ll dive deep into the world of Medigap premiums and explore how age can impact your costs.

The Importance of Understanding Medigap Premium Increases

As we grow older, our healthcare needs tend to increase, making it essential to have a comprehensive healthcare coverage plan in place. Medigap plans provide valuable coverage for expenses not covered by Original Medicare, such as deductibles, coinsurance, and copayments. However, the premiums for these plans can add up over time, making it crucial to understand how they may increase with age.

By gaining insights into the various rating systems used by insurance companies, you can make an informed decision when selecting a Medigap plan. This knowledge will help you anticipate potential cost increases and plan your finances accordingly.

The Three Primary Rating Systems for Medigap Premiums

Medigap plans are offered by private insurance companies, and each company uses one of three primary rating systems to determine premiums. These rating systems include:

  1. Attained-Age Rating
  2. Issue-Age Rating
  3. Community Rating

Let’s explore each rating system in detail:

1. Attained-Age Rating

Attained-age rating is the most common rating system used by insurance companies for Medigap plans. Under this system, your premium is based on your current age. As you grow older, your premium will increase accordingly.

For example, if you enroll in a Medigap plan at age 65, your premium might be $150 per month. However, when you turn 70, your premium could increase to $200 per month, and it will continue to rise as you age.

The advantage of attained-age rating is that the premiums are typically lower when you first enroll. However, the downside is that these plans can become significantly more expensive over time as you age.

2. Issue-Age Rating

With issue-age rating, your premium is based on the age at which you initially enrolled in the Medigap plan. Unlike attained-age rating, your premium will not increase due to your age alone. Instead, it may increase due to other factors, such as inflation and rising healthcare costs.

For instance, if you enroll in a Medigap plan at age 65 with a premium of $180 per month, your premium will remain the same regardless of your age. However, the insurance company may increase the premium slightly each year to account for inflation and other cost factors.

Issue-age rating plans are typically more expensive than attained-age plans when you first enroll. However, they can be more cost-effective in the long run, especially if you enroll at a younger age.

3. Community Rating

Community rating is the least common rating system for Medigap plans. Under this system, your premium is based on the geographic area where you live, rather than your age. Everyone within the same geographic area pays the same premium for the same Medigap plan, regardless of their age.

Community-rated plans are often considered the most stable and predictable in terms of premium increases. However, they may not be available in all states, and the premiums can still increase due to factors such as inflation and rising healthcare costs.

Do Medigap Premiums Increase With Age?

The short answer is: it depends on the rating system used by the insurance company. Here’s a breakdown of how age affects premiums for each rating system:

  • Attained-Age Rating: Yes, your premiums will increase as you age. The older you get, the higher your premium will be.
  • Issue-Age Rating: No, your premiums will not increase solely due to your age. However, they may increase due to other factors like inflation and rising healthcare costs.
  • Community Rating: No, your premiums will not increase due to your age. However, they may increase for everyone in the same geographic area due to factors like inflation and rising healthcare costs.

It’s important to note that while age is a significant factor in determining Medigap premiums, it’s not the only factor. Insurance companies may also consider factors such as:

  • Gender
  • Smoking status
  • Health history
  • Location
  • Plan type (e.g., Plan A, Plan F, etc.)

Strategies for Minimizing Medigap Premium Increases

While premium increases are often inevitable, there are some strategies you can employ to minimize the impact of these increases:

  1. Enroll during your Initial Enrollment Period: During your Initial Enrollment Period (IEP), which is the six-month period that begins on the first day of the month in which you turn 65 and enroll in Medicare Part B, insurance companies cannot deny you coverage or charge you higher premiums based on pre-existing conditions.

  2. Consider an Issue-Age Rating Plan: If available in your state, an issue-age rating plan can provide more predictable premium increases over time, especially if you enroll at a younger age.

  3. Review and Compare Plans Annually: During the Annual Enrollment Period (AEP), which runs from October 15 to December 7 each year, you can review and compare Medigap plans from different insurance companies. This allows you to switch plans if you find a better option with lower premiums.

  4. Participate in Wellness Programs: Some insurance companies offer discounts or incentives for participating in wellness programs, such as fitness activities or health education courses. These programs can help you maintain good health, potentially reducing your healthcare costs and subsequent premium increases.

  5. Consider High-Deductible Plans: If you’re generally healthy and don’t anticipate significant medical expenses, a high-deductible Medigap plan may be an option. These plans typically have lower premiums, but you’ll need to pay a higher deductible before the plan’s coverage kicks in.


Understanding how Medigap premiums may increase with age is crucial when selecting a plan that fits your healthcare needs and financial situation. By familiarizing yourself with the different rating systems and their implications, you can make an informed decision and anticipate potential cost increases.

Remember, while age is a significant factor, it’s not the only consideration. Factors like location, plan type, and health status also play a role in determining your Medigap premiums. By exploring all your options and employing strategies to minimize premium increases, you can ensure that your healthcare coverage remains affordable and comprehensive throughout your golden years.

How Does Your Medicare Supplement Plan Change As You Age?


What is the downside to Medigap plans?

No extra benefits Unlike Medicare Advantage plans, which often include additional benefits such as dental, vision and hearing coverage, Medigap policies focus solely on filling the gaps in original Medicare. If you’re looking for extra healthcare-related benefits, you may need to explore other healthcare options.

How much do Medigap premiums increase each year?

Nationally, over the last two decades, the average annual Medigap rate increase has been around 5%. There are obviously exceptions to this – some companies don’t have an increase every year, other companies have larger increases than this.

For what reason would premiums increase on an issue age Medigap policy?

An issue-age policy is a healthcare policy whose premiums are determined by the age of the insured when the policy starts. However, premiums may increase due to other factors, like inflation. Along with attained-age and community pricing, this is one of several pricing methods for health insurance.

How much does Medigap cost at age 65?

Age in Years
Average Plan N Medicare Costs
Average Plan G Medicare Costs

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