As expected, overall new business Medicare Supplement rate increases ended up slightly higher in 2016 than 2015. Overall 2016 new business Medicare Supplement rate increases averaged 3.8%, up 1.0% from the 2.8% average in 2015, but still well below the average increases from 2010 to 2014.
Average Medicare Supplement New Business
Year Rate Increases
2010 9.5%
2011 8.4%
2012 7.1%
2013 5.0%
2014 4.3%
2015 2.8%
2016 3.8%
As shown below, the 2016 increases varied a fair amount by plan with the variances following along the lines of what would be expected. High Deductible Plan F had the lowest average increase (due to continued positive claims experience) and regular Plan F had the highest average increase (due to the increase in the Part B Deductible).
2016 Average Medicare Supplement New Business
Plan Rate Increases
Total 3.8%
A 4.6%
B 4.0%
C 4.4%
D 4.0%
F 5.1%
F High 0.4%
G 2.8%
K 1.5%
L 2.4%
M 5.1%
N 3.5%
The chart below shows that the average increases by state for 2012 to 2016 were packed pretty tightly around the overall nationwide average of 4.4%. Over half of the states had average increases for 2012 to 2016 between 4.0% and 5.0%, and 90% of the states had average increases between 3.0% and 6.0% for the same time period.
