As you approach retirement and become eligible for Original Medicare enrollment, you have several choices when it comes to selecting the right healthcare coverage. But did you know Original Medicare can leave gaps in coverage, such as coinsurance and deductibles? To help fill these gaps, a common option is a Medigap policy, which helps with out-of-pocket costs not covered by Medicare Parts A and B. There are several types of Medigap plans available, including an attained-age Medigap policy. Attained-age Medigap plans offer coverage to Medicare beneficiaries based on their age at the time of enrollment, meaning the pricing structure differs from other types of Medigap plans. Let’s walk through what attained-age Medigap coverage is and whether you may benefit from it.
How does an attained-age Medigap policy differ from other Medigap coverage?
When it comes to selecting a Medigap policy, understanding the differences between the various coverage options is crucial. Unlike other types of Medigap coverage, such as issue-age and community-rated policies, the pricing structure of an attained-age Medigap policy is based on your age at the time of enrollment. This means your premium will increase as you get older, typically on an annual basis. Issue-age policies, on the other hand, set premiums based on your age at the time of purchasing the policy, and these premiums remain consistent for the life of your coverage (aside from general inflation). With an attained-age Medigap policy, you may start with a lower premium when you first enroll, but it will increase over time as you age.
Comparing Attained-Age vs. Issue-Age Medigap Policies
When comparing age-attained and issue-age Medigap policies, it's important to consider your long-term financial goals and healthcare needs. Attained-age Medigap policies calculate premiums based on your current age, while issue-age Medigap policies determine premiums based on your age at the time of purchasing the policy.
Keep in mind that the premiums for both policy types will be affected by inflation and rising healthcare costs. However, if you prioritize lower initial premiums and are comfortable with the potential for aged-based premium increases, an attained-age policy might be a suitable choice. On the other hand, if you prefer an initially higher premium that remains more consistent over time, an issue-age policy may be the better option. Ultimately, the decision between attained-age and issue-age Medigap policies depends on your individual circumstances and preferences.
SelectQuote Can Help You Find the Supplemental Coverage You Need
If you already have Original Medicare and are curious about other options to help you address gaps in healthcare coverage, Medicare Supplement plans may be worth exploring. Not sure where to start? Fortunately, our experienced licensed insurance agents are here to help. We can help you review your current policy and compare Medigap or Medicare Advantage plans in just minutes. With our proprietary technology, we can quickly and easily support you in finding the coverage you need.
