What are the Rating methods of Medicare Supplement Plans?

The premiums costs of all the Medicare supplement plans are different from each other. The costs are decided by the insurance companies that are offering the plan to the seniors. The companies use three methods for estimating and setting these premium costs. These methods are called the rating methods and are the best way of creating a limited premium cost that is beneficial for both the plan holder as well as for the seller. In this article, we will clear you the use of these rating methods so that you can get the idea that how your allotted premium costs are to be decided by your official insurance company. Get a quote for a 2019 Medicare supplement plan to save money.  These methods are described as following:

Community Rated Method for Premium Rating:

In this rating method, the decided cost for the insurance premiums is completely the same for the all age groups that are eligible for having the Medicare supplement plan. The best feature of this method is that the premium cost decided according to the community rates will never increase with your increasing age. It will remain the same until any affecting inflation will occur and cause the increment in its cost.

Issue Age Rated Method for Premium Rating:

As the name implies age, the method decides the premium according to the buyer’s age when the buyer makes his first purchase. Usually, the young buyers are allotted with low premiums. The rates of premiums in this method also not vary with time, means they also not increase when you start getting older in your age. The inflation can cause the change and increase sometimes.

Attained Age Rated Method for Premium Rating:

This method set the premium according to the current age of the buyer. The negative point of this rating method is that the premiums of your Medicare supplement plan will increase when you start getting older in age. The starting premiums are low for the young aged buyers but it may vary and increment with the passing time.


So by using the above three mechanisms of rating, the various official insurance organizations will set their premiums. But remember one thing that the premiums of Part A and B are not covered under your premiums of Medicare supplement plan. These are different costs and you have to fill these premiums by yourself. The Medicare part A is premium free when you had worked for at least 10 years and paid the Medicare taxes with dedication.