One of the most important leading indicators that Medicare Supplement carriers need to be tracking is their mix of business. It’s a great predictor of the overall health of your block of business and can provide insight into where the future loss ratios will land.
First quarter sales results are complete, and Telos Actuarial has compiled the following summary that shows how experience compares to prior years. Policies are grouped by coverage effective date.
1. Mix of Business by Plan
- Plan G continues to be the most popular plan for new business. Over 60% of issued policies in each of the last five years have been on Plan G.
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Plan N is now the second most populated plan. It had been steadily gaining ground over the past several years and is now clearly outselling Plan F.
2. Mix of Business by Issue Age
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Issued policy counts trend downward as issue age increases.
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Age 65 is still the most common Issue Age for new Medicare Supplement policies.
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There was a greater proportion of Age 65 business written during Q1 than in Q4. This is expected as replacement activity slows down outside of the Med Advantage AEP.
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Issued policy counts drop significantly for ages 80+.
3. Mix of Business by Plan and UW Type (Ages 66+)
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Underwritten Plan G policies account for more than 50% of the business issued with 2024 effective dates.
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Open Enrollment Plan G policies were the second most common type of policies.
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Plan N continues to grow, and Underwritten cases have outnumbered Open Enrollment cases by a 2:1 ratio for 2024.