Here is what you’ll find in this week’s newsletter!

1. Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.

2. Deep Dive 📚 - Medigap Market Updates - March 2024 🌼

3. Compliance Chatter 📢 - Indiana’s new Medicare Supplement under 65 requirements

4. Sponsor Snapshot 🚀 - brought to you by Telos Actuarial.

5. Data Visual of the week 📊 - Data Visual highlighting expected higher MLRs for major Medicare Insurers.

It’s only a 5 minute read, but it will make you 10x smarter.

DEEP DIVE 📚

Medigap Market Updates - March 2024 🌼

This week’s deep dive is our 2^nd quarterly Medigap Market Update and will cover recent happenings in the Medicare Supplement Insurance market. 

[Here is the December update → (link)]

1. New Products

There have been three new product filings that have been submitted to state insurance departments. 

These products should be released later this spring or in early summer months.

1. Lumico has started filing a new product in several states under their American Sentinel Insurance Company charter. 

   1. This will be the third charter that they have used in the Medicare Supplement market and the early filings include Plans A, F, G, HDG and N.

2. Cigna has also started filing a new Medicare Supplement product that also includes Plans A, F, G, HDG and N. 

   1. The rate structure includes a tiered Household Discount where the applicant can qualify for up to 20% discount if there is a second Cigna Medicare Supplement policy in the household. 

   2. There is some uncertainty around how the pending HCSC acquisition of Cigna’s Medicare business will impact currently marketed products.

3.  Wellabe has started filing a new Medicare Supplement product that includes an optional Dental benefits rider. 

   1. The filings include Plans A, F, HDG, G, HDG and N. 

   2. The Dental benefit rider will pay a $150 per visit indemnity benefit for every covered office visit.

We expect to see additional new product activity over the coming months as carriers and distributors look for ways to grow their Medicare Supplement blocks of business.

2. Rate Increases

2024 rate increases continue to trend higher than previous years. 

2024 approved rate actions are running 2.5% - 3% higher than 2023. 

The following chart shows the average rate increases for Plans F, G, and N over the past four years.

Double digit increases are going to be more common in 2024 than in previous years. 

This table shows the frequency of Plan G rate increases by different levels of increases. (Note: this is only analyzing open blocks)

Rate increases in the new Birthday Rule states (i.e., KY, LA, and MD) are running about 1% - 1.5% higher than in states with normal guaranteed issue rules. 

These higher rate increases are expected as companies continue to adjust their premiums to a level that is appropriate for the expected mix of business.

3. Claims Trends

Telos Actuarial client companies experienced 2023 claim trend of 11% on Plan F and 16% on Plan G. The 2023 results push the four-year average trends up to 8.6% and 9.6%, respectively.

Recent rate increase filings by larger companies confirm that they also saw increased claims levels in 2023.

January showed a continuation of the higher claim levels from 2023. But the breach at Change Healthcare will disrupt reporting for February and March so we will have a clouded picture of q1 results for several more weeks. 

Recent estimates indicate that claims submitted by providers to payors could be 33% lower than under normal conditions.

4. Regulatory Updates

The only major regulatory change that has been finalized since last quarter occurred in Indiana. 

They have implemented new under age 65 requirements to expand the plans that are required to be available and have codified the limitations on premium limits for these new rate classes.  

Check out the Compliance Chatter section below for more details on the new requirements.

We are also watching progress on proposed Open Enrollment regulations in CA, IA, IL, NJ and VA, along with proposed changes to under age 65 requirements in GA, NE, OH, RI, SC and TX.

These proposal regulations are in various phases of the implementation process and not all are likely to be implemented.

That is all for this quarter’s deep dive into the Medicare Supplement market. 

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Looking ahead… Next Week’s Deep Dive → Medicare eBroker CY 2024 Results Side-by-Side

DATA VISUAL of the Week 📊

The data visual of the week comes from Healthcare Dive. It shows expected continued increases in MLRs for major Insurers in the Medicare space.

If you’re ready, here are some ways we can help you:

• Newsletter Sponsorship opportunities: Promote your product or services to leaders in the Medicare space. Let’s discuss. (link)

• Market Research: Reports that help you wrap your arms around the Senior focused insurance markets. (link)

• Consulting: We can help you develop new insurance products for the Medicare market, appraise your books of business, and keep you compliant. Let’s discuss. (link)