One of the most common questions that we get from our customers is regarding rate increases and when they will occur. Rate increases are when a customer enrolls into a Medicare Supplemental Insurance plan with a particular company, and over time, the cost of the coverage increases. Depending on which type of pricing method is used depends on when you will most likely get your rate increases. Medigap policies can be priced in 3 separate ways:
- Community-rated: This is where the same monthly premium is charged to everyone who has a Medicare Supplement with that particular company, regardless of age. Rate increases occur for all ages across the board when they do occur.
- Issue-age-rated: Here is where the rate is based upon the age you are when you purchase your policy. The rate will not ever increase because of age but other factors such as inflation.
- Attained-age-rated: The premium here is based upon your current age when you purchase the policy, but as you age the rate increases. For instance if the rate of a 65 year old is $100 a month, when they turn 66 it might go up to $105 a month. Almost all of the Medicare Supplement Policies that we offer fit into this category.
As you look for a Medicare Supplemental Policy, you can look at which category the Medigap Policy fits in and get some sort of estimate when rate increases will most likely occur. But overall, you can’t 100% predict when they will occur. It is similar to trying to predict if it will rain in a year. You can look at what the weather has done on that particular day in the past, but that does not necessarily mean it will rain again. Any agent that tries to tell you they know what rates will do in the future is lying because no agent can tell.
The most important thing to save money is to enroll as soon as you can so that you can “lock” your rate in at the age you are now. Rate increases will most likely occur in the future, but here at Medicare Benefits Direct, we have a few different ways to help hedge those off. The first step to helping you save money on your premiums though, is to enroll as soon as possible to get the lowest rate you can. The younger you are, the cheaper the rate. So give us a call at 1-800-804-4212 or fill out the form above to speak with a live professional agent and start saving today!