Attained-age Medigap plans base premiums on your current age, while issue-age plans use your enrollment age. This means attained-age plan premiums increase with age, while issue-age plan premiums do not.

Medigap plans are insurance plans offered by private companies that can help you cover costs that Original Medicare doesn’t cover. There are three categories of Medigap plans:

  • no-age-rated (community-rated) plans
  • issue-age plans
  • attained-age plans

For no-age-rated plans, insurers set a standard price that applies to all beneficiaries. This means you pay the same premium as everyone in your area who is enrolled in the same plan, regardless of age or gender. These plans are offered in nine states: Arkansas, Connecticut, Idaho, Maine, Massachusetts, Minnesota, New York, Vermont, and Washington.

Read on to learn about the other two types of Medigap plans, how they differ, and which type might suit you.

With an issue-age Medigap plan, your premium is based on your age when you enroll in the plan. Because the premiums don’t increase with age, this type of plan may work for a wider group of Medicare enrollees.

For example, if you enroll at 65 years of age with a monthly premium of $100, your insurer won’t increase your premium over time because of your age.

However, only four states currently require insurers to offer these plans: Arizona, Florida, Georgia, and Missouri.

With an attained-age plan, an insurer determines how much to charge you for your premium based on your current age. Generally, this means your premiums will be higher as you age.

Using a similar example to the one above, let’s say you’re 65 years old and you recently enrolled in Medicare. You purchase an attained-age Medigap plan that charges you a premium of $100 per month, but someone who is 75 years old may be charged $150 for the same plan. This means you might pay more for the same plan as you get older.

For this reason, attained-age plans may work better for younger Medicare beneficiaries, as they tend to be more affordable for these enrollees.

States that are not required to offer either no-age-rated or issue-age plans have the option to offer attained-age plans. But some states may offer an attained-age plan along with one of the other options, which means you can compare and choose the option that works best for you.

Although attained-age plans are the only plans in which your premiums can increase due to age, Medigap premiums can increase for other reasons as well.

For example, premiums may still rise year over year as a result of inflation. Other factors that could affect your premiums include:

  • any preexisting conditions you have
  • whether you switch to a more expensive Medigap plan among the 10 available
  • whether you choose a low deductible plan or a high deductible plan
  • the amount the insurance company spent on claims in the previous year

If you’re 65 years old or older, you have the right to guaranteed coverage during the first month you’re enrolled in Original Medicare’s Part B and for 63 days after certain qualifying events.

During these times, Medigap insurers are not allowed to refuse coverage or consider your age, gender, health status, or any preexisting conditions before deciding whether to grant coverage.

This means that outside of these windows of time, you could potentially be denied a Medigap plan. But some states may give you additional Medigap enrollment rights outside of these times, so it’s important to verify the laws in your state.

Attained-age Medigap plans determine your premium based on your current age, while issue-age plans calculate your premium based on the age at which you enroll.

Generally, premiums for attained-age plans will increase as you get older, while premiums for issue-age plans will remain the same. This means younger Medicare enrollees may pay less with attained-age plans. But not every type of plan is offered in every state.