Medicare Supplement

Three Ways Medigap Sets Your Price — And Why It Can Climb

# Attained-age, issue-age, community-rated: what your Medigap price is built…

LANCASTER, Texas — If you have a Medicare Supplement (Medigap) policy, or you're shopping for one, you may have noticed something confusing: the benefits on a lettered plan (like Plan G or Plan N) are the same no matter which company sells it, but the price can look very different from one insurer to the next — and your own premium can go up over time.

The reason usually comes down to one detail buried in the paperwork: how the policy is priced. Medigap plans are sold using one of three pricing methods, and each one behaves differently as you age. Knowing which method your policy uses can help you understand your bill today and what to expect down the road.

The three pricing methods, in plain English

Medicare.gov describes three ways insurers can set Medigap premiums:

Community-rated (also called "no-age-rated"). Everyone who has the same policy pays the same base premium, no matter their age. A 65-year-old and an 80-year-old with the same plan letter from the same company would start at the same price. Premiums can still rise over time because of inflation or claims, but not because you had a birthday.

Issue-age-rated. Your premium is based on the age you were when you bought the policy. If you bought at 65, your rate is tied to that age — not your current age. Premiums can still increase over the years for other reasons, but the age factor is locked in on day one.

Attained-age-rated. Your premium is based on your current age and goes up as you get older. It may look inexpensive at 65, then step up at 66, 67, 70, and so on. These increases are separate from any inflation or claims-related increases.

Why premiums can rise even though benefits can't

Medigap plans are standardized by federal rules. That means Plan G from one company covers the same things Plan G covers from any other company. Insurers cannot cut benefits on a standardized plan.

But the price is not locked. Even a community-rated or issue-age-rated policy can go up over time because:

• Inflation — the cost of the underlying health care services keeps rising.
• Claims experience — if the pool of people holding that plan uses more care than expected, the insurer can request a rate change.
• Age (attained-age policies only) — the built-in age steps push your premium higher as you get older.

None of that changes what the policy covers. It only changes what you pay for it.

Which method will you be offered?

This is where it pays to slow down. Which pricing methods are available depends on the insurer and on state law. Some states require community rating on Medigap; others allow all three methods; still others limit certain approaches. Two people shopping in different states — or even shopping different companies in the same state — may be offered different pricing structures for the exact same plan letter.

Before you sign anything, ask the agent or the insurer directly:

• Is this policy community-rated, issue-age-rated, or attained-age-rated?
• How and when have premiums for this plan changed in recent years?
• Will my premium go up automatically on my birthday or on the policy anniversary?

Get the answers in writing when you can.

How this fits with the rest of Medicare in Lancaster

Lancaster is in Dallas County, where Original Medicare beneficiaries can pair Part A and Part B with a stand-alone Medigap policy and a separate Part D drug plan. Medigap is different from Medicare Advantage — you generally can't have both — and Medigap pricing rules do not apply to Advantage plans.

A few 2026 program facts worth keeping in mind as you budget:

• The Part D out-of-pocket cap is $2,100 in 2026.
• The maximum Part D deductible is $615.
• The old "donut hole" coverage gap was eliminated in 2025; Part D now has three phases.
• The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly installments.
• IRMAA income-based surcharges begin above $109,000 for a single filer in 2026.
• The Annual Enrollment Period runs October 15 – December 7, and the Medicare Advantage Open Enrollment Period runs January 1 – March 31.

When it's easiest to buy Medigap

Your strongest protections for buying a Medigap policy are during your Medigap Open Enrollment Period — the six months that start when you're 65 or older and enrolled in Part B. During that window, insurers generally can't deny you a policy or charge you more because of health problems. Outside that window, medical underwriting may apply in most states, which can affect both whether you're accepted and what you pay.

That's another reason to understand pricing method before you enroll: switching Medigap policies later isn't always as simple as it sounds.