How Medigap Pricing Works: Three Methods, Three Very Different Trajectories
Your Medigap premium isn't fixed. How it changes over time — and how much you'll pay over 20 years — depends on the pricing method your carrier uses.
Monthly Premium Over 20 Years
Same Plan G, three different pricing methods
Attained-age
$446/mo
at age 85
Issue-age
$329/mo
at age 85
Community-rated
$358/mo
at age 85
Three ways carriers price Medigap plans
Every Medigap premium has two components: the base rate (set when you buy) and future increases. All plans get general increases for medical inflation and claims experience. The difference is whether your premium also goes up because you get older.
Attained-age
Cheapest at 65, most expensive at 85
Your premium is based on your current age. It increases automatically each year as you get older, on top of any general rate increases for inflation or claims experience.
Advantages
- Lowest entry price at age 65
- Most widely available
- Easiest to comparison shop
Drawbacks
- Premiums rise every year due to age alone
- By age 80+, premiums can be 2-3x what you paid at 65
- Hardest to predict total lifetime cost
Example
You enroll at 65 for $120/month. By age 75, the same plan costs $200/month. By 85, it's $300+/month — even with a stable carrier.
Used in most states. The most common pricing method.
Issue-age
Locked to the age you buy
Your premium is based on the age when you first purchase the policy. You still get general rate increases (inflation, claims), but no age-based increases after enrollment.
Advantages
- No automatic age-based increases after purchase
- More predictable long-term costs
- Buying younger locks in a lower age-based rate
Drawbacks
- Higher initial premium than attained-age at the same age
- General rate increases still apply
- Less widely available
Example
You enroll at 65 for $150/month. At age 75, you're paying $190/month (general increases only). Someone who enrolls at 70 starts at $175/month for the same plan.
Available in some states alongside attained-age. More common with larger carriers.
Community-rated (no-age-rated)
Same price for everyone, regardless of age
All policyholders in a plan pay the same premium regardless of age. Rates may still increase for inflation and claims experience, but not because you got older.
Advantages
- Most predictable pricing
- No penalty for enrolling later
- Fairest long-term cost structure
Drawbacks
- Highest initial premium at age 65
- Few states require or offer it
- May have fewer carrier options
Example
You enroll at 65 for $180/month. At 75, you pay $220/month. At 85, you pay $260/month. The increases are only from inflation — not from aging.
Required in New York, Connecticut, Massachusetts, Maine, Minnesota, Vermont, and Washington.
What matters more: low entry price or predictable long-term cost?
If you're focused on minimizing your premium today, attained-age pricing gives you the lowest starting point. But if you're thinking about total cost over 15-20 years, issue-age or community-rated plans may cost less in the long run.
The catch: you may not get to choose. Your state's regulations determine which pricing methods are available, and not all carriers offer all methods. This is one more reason why comparing carriers in your specific state matters.
See how carriers in your state price plans
Our recommendation engine shows you actual rates from carriers in your state, scored for long-term value.