CSG Actuarial’s review of the 2015 Medicare Advantage (MA) plan data released by CMS last week revealed 7,214 new plan/county combinations and the non-renewal of 8,636 plan/county combinations from 2014 to 2015. 

This will impact a total of over 1.86 million enrollees, who will be searching for other coverage options and generating sales opportunities for both Medicare Supplement and Medicare Advantage agents. Approximately 1.49 million of these enrollees have the opportunity to enroll in another MA plan with the same company.  361,286 enrollees cannot enroll with the same company, however, other MA plans are available in their county.  3,707 of these enrollees are without a MA plan in their county.

Over half of all impacted enrollees reside in California, Florida, New York, North Carolina, Ohio, Pennsylvania, Tennessee, and Texas.  The majority of these non-renewed plans are local and regional HMO and PPO plans, which are also the majority of new plans being offered in 2015.

CompanyMonthly Payment
Pekin Life Insurance Company$55.22
William Penn Association$55.78
Christian Fidelity Life Insurance$63.67
Senior Life Insurance$65.88
EMC National Life$68.00
United Home Life Insurance Company$68.21
Gleaner Life Insurance Society$69.11
Bankers Fidelity Insurance$69.60
Stonebridge Life Insurance$70.00
United Commercial Travelers of America$73.64

The number of MA plans offered with basic drug benefits has increased 34% from 2014, with an average 18.5% increase of the annual drug deductible. In contrast, the number of plans offered with enhanced drug benefits has decreased 14%, with an average 244% increase of the annual drug deductible.  Interestingly, the average annual drug deductible for stand-alone prescription drug plans (PDP) has decreased 6% from 2014.  As insurers face reimbursement rates that are not keeping pace with medical trend, increasing the annual drug deductible might assist in offsetting premiums.

The number of plans with enhanced drug benefits offering additional gap coverage has decreased 14% from 2014.  Additionally, Private Fee-for-Service (PFFS) plans, both with and without Part D drug coverage, have decreased 30.6% from 2014.

The above information is reflective of MA plans only, and excludes PDP, MMP, and SNP plans.