Beginning in 2013, Plan G began to experience a significant increase in market share. Around this time, carriers began to price Plan G more aggresively. 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. The growth in Plan G becomes especially noticeable in 2019 when it accounted for almost 22% of the total inforce Medicare Supplement policies. This growth in Plan G was at the expense of a significant drop in the number of in-force policies that include first dollar coverage (including Plan F).
The shift in plans for recent years was anticipated, given the introduction of MACRA 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. Additionally, 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, this plan and other first dollar coverage plans reveal a drastic drop off in new issues.