Beginning in 2013, Plans G and N began to experience significant increases in market share. Around this time, carriers began pricing Plan G much more aggressively. Despite the only benefit difference being that Plan F covers the Part B deductible ($147 in 2013), carriers were able to support Plan G premium rates that were much lower than Plan F rates. The difference between the Plan G and Plan F premium rates was significantly greater than the Part B deductible.
Additionally, Plan N became available beginning June 1, 2010; given the copays within the benefit structure; carriers were able to offer a more affordable Medicare supplement option that still included robust benefits.
The shift in plans for recent years was anticipated given the introduction of MACRA (Medicare Access and CHIP Reauthorization Act of 2015) in 2016. MACRA made it illegal for Medicare supplement policies to provide coverage for the Part B deductible in policies sold to individuals newly eligible for Medicare as of January 1, 2020, or later. In addition, MACRA required Plan G to be offered in guaranteed issue situations for those newly eligible individuals where previously Plan F served this role. While Plan F was anticipated to remain viable within the current market, Plan F and other first dollar coverage plans had a drastic drop off in new issues.
The details of this report can be accessed via Telos Actuarial’s 13th Annual Market Projection