Medigap Price by Age Chart: How Premiums Change From 65 to 85
Medigap Price by Age Chart: How Premiums Change From 65 to 85
Understanding how Medigap premiums change with age is crucial for long-term retirement planning. This guide shows you what to expect.
Quick Answer
Premium increase factors:
- Attained-age rating: 3-5% increase per year of age, plus inflation
- Issue-age rating: Inflation-only increases (2-4% per year)
- Community rating: Same for everyone, inflation-only increases
Over 20 years (age 65 to 85):
- Attained-age: Premiums can triple
- Issue-age: Premiums typically double
- Community: Premiums typically double
Use our Medicare Supplement Penalty Calculator to model your long-term costs.
Detailed Guidance
Medigap Price by Age Chart (Plan G Example)
Attained-Age Rating (Most Common)
| Age | Monthly Premium | Annual | Cumulative Paid |
|---|---|---|---|
| 65 | $145 | $1,740 | $1,740 |
| 70 | $175 | $2,100 | $9,900 |
| 75 | $215 | $2,580 | $21,600 |
| 80 | $285 | $3,420 | $37,400 |
| 85 | $380 | $4,560 | $58,200 |
Issue-Age Rating
| Age | Monthly Premium | Annual | Cumulative Paid |
|---|---|---|---|
| 65 | $165 | $1,980 | $1,980 |
| 70 | $180 | $2,160 | $10,700 |
| 75 | $200 | $2,400 | $22,500 |
| 80 | $225 | $2,700 | $38,200 |
| 85 | $260 | $3,120 | $55,100 |
Note: Issue-age starts higher but increases more slowly. At age 85, attained-age costs $1,440 more per year.
How Rating Methods Work
1. Attained-Age Rating
- Premium increases as you get older
- Typical increase: 3-5% per birthday
- Also increases for medical inflation (2-4% per year)
- Combined increase: 5-9% per year
- Most common in: FL, TX, CA, OH, PA
2. Issue-Age Rating
- Premium based on age when you buy
- Never increases due to your age
- Only increases for medical inflation
- Better long-term value
- Common in: AZ, CO, ID, WA
3. Community Rating
- Same premium regardless of age
- Everyone pays the same base rate
- Only increases for inflation/claims
- Best for older applicants
- Required in: AR, CT, MA, MN, NY, VT, WA (some)
Long-Term Cost Projection
20-Year Cost Comparison (Plan G, Age 65-85):
| Rating Method | Starting Premium | Total 20-Year Cost |
|---|---|---|
| Attained-Age | $145 | $58,200 |
| Issue-Age | $165 | $55,100 |
| Community | $175 | $52,800 |
Key Insight: Issue-age and community rating often cost less over time, despite higher starting premiums.
Factors Beyond Age That Increase Premiums
| Factor | Annual Increase |
|---|---|
| Medical inflation | 2-4% |
| Claims experience | 0-3% |
| Age increase (attained-age only) | 3-5% |
| Tobacco surcharge | Fixed % |
| State regulatory changes | Varies |
Planning for Premium Increases
Strategy 1: Choose Issue-Age or Community Rating
- If available in your state
- Pay more now, save later
- Predictable increases
Strategy 2: Budget for 5-7% Annual Increases
- If you have attained-age rating
- Premium at 75 will be ~2x premium at 65
- Premium at 85 will be ~2.5-3x premium at 65
Strategy 3: Consider High-Deductible Plans
- Lower premiums long-term
- Higher out-of-pocket risk
- Good for healthy individuals
Strategy 4: Plan for Rate Shopping
- Can switch plans (with underwriting) to save
- Some states have annual guaranteed issue windows
- See Switching Rules Checklist
Age-Based Planning Checklist
- Determine your state’s rating method
- Get quotes for attained-age, issue-age, and community if available
- Calculate 20-year total costs for each option
- Factor in your health trajectory
- Consider starting with a higher premium for long-term savings
- Budget for 5-7% annual premium increases
- Review premium annually
- Plan for potential plan changes at age 75, 80
- Use our calculator for projections
Frequently Asked Questions
Will my premium double by age 75?
With attained-age rating, yes, your premium will likely double (or nearly double) by age 75. With issue-age or community rating, expect 40-60% increase due to inflation only.
Should I switch to issue-age rating while young?
If available, issue-age rating is usually a better long-term value. The slightly higher starting premium is offset by lower increases over time.
Can premiums decrease as I age?
No, Medigap premiums never decrease due to age. They only go up (or stay the same in rare cases).
What if I can’t afford the premium at age 80?
Options include:
- Switch to a less comprehensive plan (Plan A or high-deductible)
- Apply for Medicaid if income-eligible
- Switch to Medicare Advantage (but may face underwriting to return to Medigap later)
Are age-based increases the same for all insurers?
No, each insurer sets their own age-based increases. Shop around—some insurers have more aggressive age increases than others.