Medigap Enrollment Steps: #3 Understand What You Will Have to Pay

When it comes to how insurance companies charge their customers there is always a process and a protocol for each premium. Medicare and Medigap don’t differ from this approach and actually Medigap will tell you the processes they use to come up with your rates. The three different process are listed below and will determine how the Medigap insurance company comes up with your premium.

Attained Age: This type of plan can get expensive quickly because it is based on the subscriber’s age at any given time. This means as you get older your policy gets more expensive and more cumbersome to you.

Issue Age: With this type of age related plan the plan will only increase in expense as health care costs rise. This means that your policy is as expensive as you are old at the time you enroll and then it never changes.

Community Rated: The subscriber’s age has nothing to do with the expense in this policy as it is based on where you live. The only increases, like issue age, are based on the higher rates charged by health care companies.