Medicare Supplement Plan Premium Fixed on Issue Age
While trying to find a suitable Medicare Supplement Plan, people should be aware of the method in which the insurance company calculates the monthly premium for the particular plan. Private insurance companies even though they sell the same plans may charge different premiums. This is because the pricing policy or the method in which the premiums are fixed could be different.
The premiums of Medicare Supplement Plans are generally based on any of the three following ways:
- Community - Age Pricing
- Issue - Age based Pricing
- Attained - Age based Pricing
The Issue age based pricing policy involves the consideration of the personís age at the time he is applying for the insurance, in other words, when the policy is issued. After the premium is fixed at that rate it will not increase due to age. Premiums may rise as a result of escalating prices.
According to this method, a person who buys the plan at age 65 will pay a lower premium than a person who buys the plan at age 73. The plans may be same but the premiums will be different due to the difference in age. The premiums will not rise with the advancement in years.