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MediGap Plan Rating Methods

Rating requirements for Medicare Supplement (aka “MediGap”) plans vary by state.

There are two rating methodologies used:  

  1. Community Rating and
  2. Entry Age Rating (aka Issue Age Rating)

Community Rating is when all insured members in the same rating class pay the same rate (excluding discounts and surcharges.)

Entry Age Rating is when rates are based on the member’s age as of his or her plan effective date.

In many states the use of tobacco products also determines the rate.