Key Facts from Medicare Supplement Analysis for Agents

Currently an estimated 67 million Americans are enrolled in Medicare, and this number is expected to increase to 81 million by 2030 as the Baby-Boomer generation becomes eligible for enrollment.  Agents should consider the characteristics of Medicare, such as no limit on out-of-pocket spending and other cost-sharing requirements in assessing coverage needs for newly eligible clients.

An analysis through 2023, based on data from the National Association of Insurance Commissioners (NAIC) and the Centers for Medicare and Medicaid Services (CMS) 2022 Survey file data, provides insight for agents as to gaps in current access and potential for new growth with underserved populations.  In the brief, Key Facts About Medigap Enrollment and Premiums for Medicare Beneficiaries, it is reported that “medical debt is a concern for more than one in five (22%) older adults.”

The Key Takeaways as outlined by KFF

• Beneficiaries with a Medicare Supplement (Medigap) policy are “more likely to be white, have higher incomes, and report better health.”
• A smaller percentage of beneficiaries under age 65 with disabilities have a Medicare Supplement plan compared to those over age 65 (due in part to guarantee issue requirements which reduce access).
• Medicare Supplement Plan G, the most comprehensive plan for new enrollees was the most popular plan in 2023 with approximately 5.3 million enrolled. Plan F (which also covers Part B deductible) is no longer available as of 2020 for new beneficiaries, was the 2^nd most popular plan in 2023.