Medicare Supplement Rates

Monday, May 1, 2006

Attained-age.   This means the medicare supplement rate increases as you get older.  This may be each year or every 5 years (at age 70, 75, 80, etc.) for example.  Often medicare supplement rate increases are very modest.   Another component to rate increases is inflation.  Companies sometimes adjust rates to address the rising cost of health insurance as well as inflation in the marketplace.

Medicare supplements are also sold as issue-age policies.   This means the premiums will not increase due to age.  Obviously, as the group ages any necessary adjustments in premium are accomplished by an inflation adjustment.  Seniors should listen carefully to what they are being told by agents.  Although the rate will never increase due to age, rates can increase due to the rising cost of providing health insurance or claims against the group of insureds.