Why Medicare Supplement Premiums Increase: Attained-Age, Issue-Age and Community-Rated

Rating method is one part of the price. Location, plan letter, company, tobacco status, discounts, underwriting and other permitted factors can also affect the premium.

“Not based on age” does not mean “never increases.” Medical costs, utilization, inflation, changes in Medicare cost sharing, the policy block’s claims experience and other approved rating factors can affect premiums.

No. An attained-age policy may start with a competitive premium, and another rating method can still have substantial non-age increases. The label alone does not identify the lowest current or long-term cost.

The useful question is how the carrier applies age increases, how frequently the age band changes, and how the total premium compares at your current age. Ask for the policy’s actual rating explanation rather than assuming every attained-age policy increases on a birthday.

• Which rating method does this exact policy use?
• If attained-age-rated, when and how does age change the rate?
• Has this policy form had premium increases during the last several years?
• Which discounts are included in the quote, and can they change?
• Is the quote for the same standardized plan letter and effective date?
• Does the carrier charge differently for tobacco status, household status or payment method?
• Would changing later require underwriting?

A rate increase is a reason to review the policy, but it does not create a universal federal right to buy any other Medigap policy without medical underwriting. Use a replacement process that protects the coverage you already have.

1. Read the carrier notice. Identify the new premium, effective date and whether a household, payment or other discount changed.
2. Compare like for like. Start with the same standardized plan letter, effective date and applicant information across available carriers. A cheaper plan letter is not an equivalent-benefit comparison.
3. Identify your enrollment right before applying. Determine whether you are in Medigap Open Enrollment, have a federal guaranteed-issue right or qualify for a state-specific switching protection. Otherwise, the new carrier may use medical underwriting, charge more or decline the application where permitted.
4. Apply before canceling. Complete the new carrier’s application honestly and keep the current policy active while the application is reviewed.
5. Confirm approval and timing in writing. Verify the exact policy, premium and effective date before coordinating any termination of the old policy.
6. Use the 30-day free-look period carefully. When replacing one Medigap policy with another, Medicare says you can decide during the first 30 days whether to keep the new policy. You must pay both premiums during that overlap.

Missouri’s Medigap Anniversary Rule and Illinois’s Medigap Birthday Rule can provide additional opportunities for certain policyholders, but each has eligibility, timing and replacement limits. They are not open-ended rights to buy any plan from any company.

Reducing benefits can lower premiums, but moving back to richer coverage later may require underwriting. Consider the long-term tradeoff before changing plan letters.