Attained-Age and Issue-Age are two different ways you pay for your Medicare Supplement Plans (Medigap).
Attained-Age costs are typically based on your age and increase as you grow older. Issue-Age costs are usually based on the age you were when you signed up and increase based only on other factors, like inflation.
When signing up for any Medigap plan, it’s important to check whether the plan uses Attained-Age or Issue-Age rates, as this may affect the cost over your lifetime.
In this post, we’ll explain the differences between Attained-Age and Issue-Age and help you decide which works best for you.
What is Medigap?
Before we get into whether you should choose Attained-Age or Issue-Age, we need to define Medigap.
Medigap, which is another name for Medicare Supplement Plans, includes a number of plans that cover different out-of-pocket expenses that Original Medicare doesn’t cover.
This cover is provided by insurance companies and you can choose from a variety of plans.
What is Issue-Age vs Attained-Age
Issue-Age Medigap Plans
The main thing you need to know about Issue-Age rates is that your monthly cost will be based on your age when you sign up, and it won’t increase according to your age.
If you sign up at a younger age, for example, 65, you may pay less throughout your life than someone who signs up at 75.
Of course, this doesn’t mean that your costs won’t increase over time; other factors influence this (like inflation).
Attained-Age Medigap Plans
With an Attained-Age rate, your costs increase yearly according to your age.
However, it’s important to note that these increases are not drastic and you could end up paying a lower overall lifetime cost.
Remember when signing up that if your costs seem low at first, they typically increase annually as you age.
Issue-Age vs Attained-Age: Factors to Consider
Which state you live in makes a big impact on what is available to you. You might find that the plan you want in the state you live in is only available with an Attained-Age rate.
Attained-Age plans are the most common in many states in the US.
If you’re able to choose between two similar plans, it’s important to think of your current age and how much you would potentially pay over your lifetime on each plan.
Other factors to think about when signing up include:
- The costs and perks of your plan
- Your health insurance needs
- The reputation of the insurance company
- Future cost projections of the plan
To Wrap Up
The state you live in and the insurance company you choose will largely dictate whether you end up with an Attained-Age or Issue-Age rate.
However, if you choose that plan, it is still up to you. You have to consider whether it’s going to cost you more or less in the long run and whether the perks are worth it.
Need help finding the right plan for you? Our exclusive Medicare workshop will show you what you need to know about Medicare (in simple terms) and help you learn how to choose the best Medicare plan for your needs.