Issue Age, Attained Age or Community Age

Whats the difference, and Why is it important to me?

When it comes to Medicare Supplement policies there are many different factors that help in determining what the rates are for each plan.  Obviously the coverages the plan provides is the most common, the more coverage you get, the more you pay.  Another factor is whether you have to stick to a network of doctors or not. Medicare Supplement Select plans require you to visit their network for your services in return for a lower monthly premium.

But to get to the title of this page:

ISSUE AGE, ATTAINED AGE, OR COMMUNITY AGE, WHATS THE DIFFERENCE?

This is one of the most important factors that you need to know about if you plan on living with your Medicare Supplement plan for more than four or five years!

ISSUE AGE - (Not offered by many companies) The company will not raise your premium just because you are getting older.  Your premium will always be based on your age when you purchased the policy, but it will be adjusted for other factors. If you buy a plan at age 65, you will always pay the current premiums charged to 65-year-old customers. For example, if you buy the policy at age 65, when you turn 70, you would still pay the same current rate 65-year-olds are paying. Issue age policies can be more costly up front but also can save money in the long run.

Attained age - (offered by most companies) The premium will increase as you get older. If you buy a plan at age 65, you will have a premium increase each year just because you got one year older along with increases for other factors such as inflation and medical costs. For example, if you buy at age 65, when you are 70, you will pay whatever the company charges 70-year-olds.

*Just because you purchase the a policy from the company with the lowest rate when you become eligible, does not mean it is the best option for the long run. An agent who cares about your needs will explain how this works and get you in a plan that will be good for you for the long term, not the plan that is good for his pockets right now.  Click Here to speak with an agent who you can trust and is accredited by the Better Business Bureau.

Community Age - The premium will be the same for all persons with that plan no matter what your age is. If you buy a plan at age 65, you will pay the same premium that a 85 year old will pay.  It does not matter what your age is, everyone pays the same rate for the same plan.

*Can be good or bad, depending on your age and the age of the majority of the policy holders for that plan. For example, if you are 65 and that plan has a majority of customers who are 75 or older, then your rate will be higher.

Click Here to request a quote from an agent who you can trust and is accredited by the Better Business Bureau.

Posted under Medicare Supplement

First for those of you who do not know, an Advantage plan, is different than a supplement plan. Advantage plans are managed through a companies network of providers. If you HAVE to get your service from an approved provider unless it is an emergency. What most don’t realize is that your Medicare Part A & B are now controlled by the company you get your plan from, not you. Yes you just gave your control over to your health care company.

Here at Medicare Supplement Direct we do not promote advantage plans. Call us to get our free report “The 7 things you MUST know before you buy”.

No back to what I wanted to write about. If you read the news and have seen how several members in congress want to reduce funding of Medicare Advantage Plans. Why? Because a recent government study showed that insurance companies on average were being paid an additional 13% above the cost of traditional Medicare.

What could happen because of this? There are several things that could happen.

Lets think about this one first, if it is more profitable for them, which do you think they are going to promote more? Your right, the Medicare Advantage plan. This is why all the TV commercials you see are for advantage plans even though they each have their own program name ” Humana Gold” etc. They make more money and reduce your options.

Now that you know that plan is more profitable, lets dig a little deeper.

What if Congress approves a reduction in funding? One is that once the funding is reduced, insurance companies might withdraw from the Medicare Advantage market since it will become less profitable. Another most likely result would be higher premiums for Medicare Advantage insureds. Premiums might be raised to offset the decrease in funding (Currently companies in Missouri receive $776 per month).

Lastly, benefits could be reduced. Plan copayments and out-of-pocket maximums would be raised to move more responsibility toward the insureds.

Medicare Supplements are great products for seniors offering access to more doctors and hospitals in most cases than Medicare Advantage Plans and also lower out of pocket costs when receiving medical attention in many cases. Make sure you study all the facts before you buy.

Posted under Medicare Advantage