Plan F Revival

Written by Greg Segovia   |   Executive Marketing Director for PSM

As a brokerage, we know the plan that licensed agents sell the most is Plan G, and you may sprinkle some Plan N in there as well.

But are you still offering the Plan F to your clients and bringing that value proposition to the table for them? That’s the million-dollar question.

I think we are all fully aware of the MACRA legislation that went into effect January 1st, 2020 by now. If not, we have a 1-page flyer that will lays out those rules and how they apply to Medicare eligible prospects out there. 

MACRA was a major industry change that certainly affects the Medicare Supplement market. And because of that change, we anticipate a small revival of the Plan F and more diversification into the Plan N. And this is why...

Because of MACRA, we know that Plan F is only available to those clients who were Medicare eligible before January of 2020. So yes, it’s off the table for any new T65 clients you are speaking to. And that means for most scenarios, any client who is eligible for, and considering a Plan F would have to go through underwriting, which allows the carrier to assess the claims risk upfront.

In addition, we are seeing brand new Plan F blocks hit the market from several carriers, with very competitive rates. Those new blocks are going to receive mostly underwritten business, which should yield greater stability on that Plan F block, as well as very low rate increases for your clients in the future. As we all know, lower rate increases means higher retention on your business, as well as less churning of your business down the line. In turn, that’s going to translate into more renewals and less time needed to manage that part of your business.

We also saw the Part B Deductible take a larger increase in 2022 than we expected, moving up to $233. And we are starting to see larger and more sporadic rate increases on the Plan G nationwide, because of all the Open Enrollment and Guaranteed Issue business coming in for that plan. So all of these changes put Plan F in a new light and position to consider.

So here is what it boils down to…

For your clients experiencing those large Plan G increases, or even for clients currently on a Plan F that are healthy enough to switch, you should be bringing Plan F to the table for them.

Plan F is a stable offering that provides first-dollar coverage with no deductible or out of pocket surprises. For some people, that will be music to their ears and worth the extra premium. The added value and future stability is a win-win for both you and your client, so be sure to not overlook Plan F when you are offering Medicare Supplements.

Yes, it takes a little bit more explaining and education with your client, but as you know, everyone out there is offering the Plan G. So make sure to differentiate yourself and make Plan F part of the value proposition conversation with your clients.

Hope this is helpful and adds value to your business.