Do You Need A Medicare Supplemental (or Advantage) Policy?

[JC]

If congress decides to place a requirement that they can not cover the deductible under a supplement that is not really going to cause much of a problem. What would cause the plan G rates to rise is if they remove the underwriting requirement and make them one of the Guaranteed Issue options.

 

[Lis]

Focusing on the effects of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) on plans F and G, the article linked below, written for the insurance industry, makes the following case:

"Plan F sales, which will only be available to the non-newly eligible (NNE) market, will consist of a greater portion of healthier underwritten business than under the current environment. Plan F will still be available to NNE individuals under guarantee issue provisions.

On the other hand, Plan G will likely comprise a greater portion of higher cost/utilization open enrollment and guarantee issue business from the newly eligible (NE) market. As the NE market grows and the NNE market shrinks over time, the relative mix of Plan F and Plan G will shift and the market will be more reflective of Plan G experience."

It seems a bit counterintuitive, because the NNE market will be getting older, but if I take what the author says at face value, it sounds like premiums "should" increase at a slower rate for the two flavors of plan F, vs. plan G, post 2020?

http://www.milliman.com/insight/201...arket-have-2020-vision-in-the-world-of-MACRA/