Which of the following best describes issue-age-rated premiums?

Issue-age-rated premiums are a pricing structure for Medicare Supplement Insurance that takes into account the age of the beneficiary at the time they enroll in the plan. This means that when a person applies for the policy, their premium is determined based on their age at that specific enrollment date. As a result, individuals who enroll at a younger age will typically have a lower premium when compared to those who enroll later in life.

This pricing model is beneficial for younger enrollees since their premiums will not increase simply because they age. Instead, their premium remains based on the age at which they first obtained the policy. As long as they maintain their coverage, their premium will stay fixed for that benefit period, although the insurance company may adjust rates over time due to overall inflation and other market factors, but not directly due to the beneficiary aging.

While some other premium rating methods may involve increases based on age or other factors, issue-age-rated premiums do not adjust simply because the policyholder gets older after enrollment, distinguishing them from age-rated or attained-age-rated premiums.