How much do Medigap policies cost?
There are three different methods for setting premium rates. They can be either community rated, meaning that all policyholders in a geographic area are charged the same amount; issue-age rated, whereby premiums are based on the age at initial purchase; or attained-age rated, whereby premiums rise as beneficiaries age. Attained-age rating results in higher premiums as beneficiaries grow older, when their incomes are likely to decline. Policies with larger benefit packages are more expensive. In addition, if Medigap policies are available for those under age 65, the premiums are likely to be significantly higher than the premiums for those ages 65 and older.
