Medicare Supplement/Medicare Select product line
CMS payments to Medicare+Choice providers continue to lag behind trend experience, causing concern regarding the long-term viability of the product in many markets. At the same time, the coinsurance level freeze brought about by the outpatient prospective payment system for hospital services is serving to eliminate the cost component of trend that has been rising fastest for many Medicare Supplement plans. Carriers currently in the Medicare Supplement market may expect to see more competition and significant reductions in their historical trend levels. Those not currently in the Medicare Supplement market may need to consider entry unless they choose to ignore the senior market entirely. The decision is not an easy one, since Medicare Supplement products carry with them significant regulatory burdens.
The experience to help plans address these issues including:
- Feasibility/market analysis
- Trend analysis
- Rate and refund filing support
- Assessment of Supplement vs. Select products
- New product development or purchase of an existing block of business
Feasibility Evaluation
Because Medicare Supplement is a guaranteed renewable product with highly regulated minimum loss ratio standards, the decision to enter the market should not be taken lightly. Reden & Anders can help you evaluate markets and target entry into only those markets with a high possibility of success. Considerations include rating strategy, underwriting strategy, product offerings, data requirements to support regulatory reporting and filing, distribution systems, and the evaluation of current and potential competition.
Trend Analysis
As it is typically designed and priced, Medicare Supplement trend evaluation involves aging and durational components as well as benefits with cost components that behave differently than most other products. Reden & Anders follows these trends in detail and can serve as an
invaluable source of information and expertise regarding Medicare Supplement trends.
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