Medigap Pricing Explained: Community-Rated vs. Issue-Age vs. Attained-Age

The three ways a Medigap policy can be priced

A Medigap (Medicare Supplement) policy is sold by a private insurance company, and each company decides how it will set—and later raise—your premium. According to Medicare, every Medigap policy is priced in one of three ways. The pricing method does not change the benefits of a standardized plan (a Plan G is a Plan G no matter how it's rated); it only changes how your monthly cost behaves as you age and as years pass.

Knowing which method an insurer uses is one of the most useful questions you can ask before buying, because two policies with identical coverage can cost very different amounts over a 20-year retirement depending on how they're rated.

• Community-rated (also called "no-age-rated"): generally the same premium for everyone who holds that policy, regardless of age.
• Issue-age-rated (also called "entry-age-rated"): premium is based on the age you are when you buy, then it won't rise because of your age.
• Attained-age-rated: premium is based on your current age and increases as you get older.

Community-rated (no-age-rated)

With a community-rated policy, the insurer generally charges the same premium to everyone who has that Medigap policy in a given area, regardless of age. An 82-year-old and a 67-year-old with the same community-rated plan in the same market would generally pay the same base rate.

Your premium can still go up over time—because of inflation, rising medical costs, or other factors the insurer files—but it does not increase simply because you had a birthday. This method tends to start higher than attained-age pricing for a 65-year-old, but it can be more predictable and competitive in later years.

Issue-age-rated (entry-age-rated)

An issue-age-rated policy bases your premium on the age you are when you first buy it. Buy at 65 and you lock in a 65-year-old's rate; buy the same plan at 72 and you'll generally pay more from the start. Once you're enrolled, your premium won't rise because of your age.

As with every method, premiums can still climb due to inflation and other cost factors—just not because you're getting older. The practical takeaway: with issue-age pricing, buying earlier generally locks in a lower lifetime base rate.

Attained-age-rated

An attained-age-rated policy bases your premium on your current ("attained") age, so the price is scheduled to rise as you grow older—often at set intervals such as every year or every few years, in addition to any inflation-driven increases.

These plans are frequently the least expensive option when you first enroll at 65, which makes them attractive on a price-comparison sheet. But because the cost is designed to climb with age, an attained-age policy can eventually become the most expensive of the three. Medicare itself cautions that attained-age plans 'may be the least expensive at first' but 'can eventually become the most expensive.'

What the rating method does NOT change

Medigap plans sold today are standardized by letter (for example, Plan G or Plan N), so a given lettered plan covers the same Medicare-defined gaps no matter which insurer sells it or how it's rated. Rating affects price behavior, not coverage.

• Standardized Medigap plans help pay your share of Original Medicare costs—such as the Part A hospital deductible of $1,736 per benefit period (2026, CMS) and the 20% Part B coinsurance that applies after the $283 annual Part B deductible (2026, CMS).
• You still pay your Medicare Part B premium ($202.90/month in 2026, CMS) separately; Medigap does not replace it.
• Medigap policies sold today do not include prescription drug coverage—for that you'd need a separate Part D plan (2026 national base beneficiary premium $38.99/month; out-of-pocket cap $2,100/year, Medicare.gov).
• Exact benefits vary by plan letter, and some plans (such as high-deductible versions) work differently—always confirm the specific plan's terms.

Other things that affect your premium—and why timing matters

Beyond the rating method, an insurer's premium can reflect discounts (for example, for non-smokers, women, married applicants, or paying annually), the state you live in, and whether the plan is a high-deductible version. Some states require community or issue-age pricing, so the rules where you live matter.

Timing is critical because of medical underwriting. During your six-month Medigap Open Enrollment Period—which starts the month you're 65 or older and enrolled in Part B—you generally have a guaranteed right to buy any Medigap policy sold in your state at the best available rate, regardless of health. Outside that window (and outside certain guaranteed-issue situations), an insurer may use medical underwriting and can deny coverage or charge more. Buying during open enrollment can lock in better pricing for the life of the policy.