Issue-age pricing for Medigap (Medicare Supplement) plans sets your premium based on your age when you first buy the policy, meaning your rate doesn't increase as you get older, though it can still rise due to inflation. While initial costs might seem higher than attained-age plans (which base rates on your current age and rise as you age), issue-age premiums offer long-term stability and predictability, with rates fixed to your initial enrollment age.
Issue-age Medigap plans are based on the person's age when they first enroll in the plan. These premiums do not increase as a person ages. People have a guaranteed right to purchase and enroll in a Medigap plan within the first 6 months they are enrolled in Medicare Part B and are over the age of 65 years.
Community-rated plans (also known as No-Age-Rated pricing) tend to be cheaper over time than Medigap plans with attained-age pricing, in which the monthly plan premium increases as you get older.
Issue-age premiums don't rise because you get older, but they can still increase due to inflation and other cost pressures. Compared with attained-age and community-rated pricing, these methods can lead to very different premium paths over time.
Plan G remains the most popular Medigap plan for new enrollees, offering comprehensive coverage with predictable costs. Other popular plan options include High-Deductible Plan G, Plan N, and Plan F (if eligible).
Medigap plans are sold by private insurance companies, like Blue Cross and Blue Shield (BCBS), and are designed to assist you with out-of-pocket costs (e.g., deductibles, copays and coinsurance) not covered by Parts A and B.
Here are a few common complaints we have heard about Medigap:
The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.
Issue age: Issue-age pricing uses only the age from when you signed up for a plan to calculate your premiums. Your pricing does not increase as you get older. Community-rated: Community-rated plans do not use age as a factor. Instead, everyone pays the same amount.
Here are some of the biggest Medicare mistakes to avoid:
A "good" Medicare Supplement (Medigap) plan costs roughly $90 to $300+ per month, with popular plans like Plan G averaging around $140-$180 and Plan N being slightly cheaper ($110-$140), though costs vary significantly by location, age, tobacco use, and the specific plan chosen. High-coverage options (like Plan G) are pricier, while plans with copays (like Plan N) or high-deductible versions (like HD Plan G) offer lower premiums for less upfront coverage.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
Medigap (Supplemental Insurance): The 2026 out-of-pocket maximum for Medigap plan K is $8,000. For Medigap plan L, the MOOP is $4,000. After you reach these limits, the plan will pay 100% of your costs for approved services for the remainder of the year.
Q: What is the "Birthday Rule" and how does it apply to the new Medigap Plans? A: If you already have Medigap insurance, you have 60 days of "open enrollment" following your birthday each year when you can buy a new Medigap policy without a medical screening or a new waiting period.
Community-rated plans offer stable premiums over time like issue-age plans. However, community-rated plans may offer more favorable pricing than issue-age for people who are buying a new policy later in their retirement.
There isn't one single "best" Medigap company, as it depends on your needs, but top-rated providers consistently include AARP/UnitedHealthcare, Blue Cross Blue Shield, Humana, Mutual of Omaha, and Cigna, known for strong coverage (especially Plan G), customer satisfaction, and nationwide availability, with AARP/UnitedHealthcare often cited as best overall and BCBS for network strength, while companies like Anthem offer lower costs and Mutual of Omaha provides value and variety.
The standard monthly premium for Medicare Part B will be $202.90 a month for 2026, an increase of $17.90 from $185.00 in 2025. The Medicare Part B deductible, or the amount beneficiaries must pay out of pocket before coverage begins, will be $283 in 2026, an increase of $26 from 2025.
Issue-age-rated: Premiums are based on the age you were when you first bought the policy. The younger you are when you purchase a Medigap, the cheaper your premium. (Note: Premiums will still increase over time due to inflation, but not due to age).
The Medicare 2-Midnight Rule is a Centers for Medicare & Medicaid Services(CMS) guideline for hospital admissions, stating that if a doctor expects a patient to need hospital care crossing at least two midnights, the stay generally qualifies for Medicare Part A inpatient payment;
Best for member satisfaction: State Farm
State Farm sells Medigap policies in most states, and members have few complaints about the company.