As reported by CSG Actuarial in April, the 2024 Medicare Supplement overall market loss ratio increased slightly to 84.3%, as carriers continued to attempt to catch premium rate levels up to the post-Covid claim utilization rates.
So how did Covid impact Medicare Supplement claim utilization rates and how have they recovered post-Covid? This graph shows the Medicare Supplement average claim amount per policy for 2006 to 2024, along with a trendline of what the average claim amount per policy would have been 2020-2024 if COVID hadn’t happened and the average claim amount per policy had continued based on the 2018-2019 growth rate.
For all plans combined, the average claim amount per policy in 2024 exceeded what would have been expected based on the trendline from the years prior to Covid.
What does this same information look like for the Medicare Supplement plans with the largest market share?
Here’s what the same information looks like for Plan G.
For Plan G, the average claim amount per policy in 2024 is very close to what would have been projected based on the Plan G trendline from the years prior to Covid.
Here’s what the same information looks like for Plan N.
For Plan N, the average claim amount per policy in 2024 is lower than what would have been projected based on the Plan N trendline from the years prior to Covid. CSG Actuarial believes this is due to some of the improved underwriting selection Plan N is beginning to experience versus Plan G.
Here’s what the same information looks like for Plan F.
For Plan F, the average claim amount per policy in 2024 is higher than what would have been projected based on the Plan F trendline from the years prior to Covid. CSG Actuarial believes this is due to less business at the lower ages coming into Plan F due to the 2020 MACRA requirements.
*Data Source: National Association of Insurance Commissioners, by permission. The NAIC does not endorse any analysis or conclusions based upon the use of its data.