The three ways Medigap is priced
Medicare's guide Choosing a Medigap Policy says each company decides how to price its policies, in one of three ways:
| Method | How it works | What it means for you |
|---|---|---|
| Community-rated ("no-age-rated") | Generally the same premium for everyone, regardless of age | Your premium doesn't rise because you get older, but it can rise for inflation and other reasons |
| Issue-age-rated ("entry-age-rated") | Based on your age when you buy the policy | Lower if you buy younger, and doesn't rise because of age |
| Attained-age-rated | Based on your current age | Often lowest at first, then goes up as you age; can become the most expensive |
What Ohio requires
Ohio doesn't set one method. Its Medigap rule, OAC 3901-8-08, refers to issue-age-rated policies, so that method is recognized, but no provision requires or bans community, issue-age or attained-age rating. Companies selling in Ohio may use any of them. The rule does require each policy's first page to state any premium changes the company reserves the right to make, including automatic increases based on your age.
Because Ohio has no birthday rule, many people keep the same Medigap policy for years. That makes the pricing method more important here than in states where you can switch every year without health questions.
Other things that affect your price
- Where you live. Medicare.gov says premiums vary by company, plan and location.
- Discounts, such as for non-smokers, married people, paying yearly or automatic payment.
- Medical underwriting if you apply outside open enrollment or a guaranteed-issue right.
- Medicare SELECT and high-deductible options, which may have lower premiums.
Questions to ask before you buy
- Ask the rating method. "Is this policy community-rated, issue-age-rated or attained-age-rated?"
- Ask about rate history. "How much has this policy's premium gone up in recent years?"
- Ask about discounts. Find out which apply to you.
- Compare the same letter. A Plan G is the same at every company; only price and service differ.
To compare policies and pricing methods from the companies they work with, you can request a call from a licensed insurance agent. See Medigap in Ohio.
Related questions
Medigap Plan G vs. Plan N
Comparing the two popular letters.
Can I switch Medigap plans in Ohio?
If your rate climbs.
When can I buy Medigap in Ohio?
When health can't affect your price.
Sources
- CMS — Choosing a Medigap Policy (how companies set prices)
- Medicare.gov — Get Medigap costs
- Ohio Administrative Code 3901-8-08, Medicare supplement
More questions in this guide
- Can I get Medigap under 65 in Ohio?
- Can I get Medigap with pre-existing conditions in Ohio?
- Can I switch Medigap plans in Ohio?
- Does Ohio have a Medigap birthday rule?
- Is Medigap Plan F still available in Ohio?
- What is the difference between Medigap Plan G and Plan N?
- What happens to my Medigap if I move out of Ohio?
- When can I buy Medigap in Ohio?
Part of the guide: Medigap (Medicare Supplement) in Ohio · All questions
Frequently asked questions
Which rating method is cheapest?
Attained-age policies are often lowest at 65 but rise with age and can become the most expensive later. Issue-age and community-rated policies may start higher. Compare the expected cost over many years, not just the first premium.
Can my premium go up even if it isn't based on age?
Yes. Under any method, premiums can rise because of inflation, medical costs and other factors. Ohio's rule requires a policy to disclose on its first page any right the company reserves to change premiums.
Can a company charge me more because of my health?
Not during your 6-month Medigap open enrollment or in a guaranteed-issue situation: Ohio's rule bars pricing based on health status, including tobacco use, then. Outside those windows, a company can use your health to set the price or decline you.
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