With the introduction of new Medicare Supplement Exchange products, CSG Actuarial studied the comparison between the rates offered through the Exchange versus the rates offered through the brokerage market. The Medicare Supplement Exchange is becoming increasing popular among seniors who are retiring and will no longer be covered under their employer’s provider. Businesses are handling these older workers by helping them pay for an Exchange plan that carriers now offer a specific Medicare Supplement brand for. The seniors are able to select all the plans that are available on the brokerage market, however, they are sometimes given a different price entirely. The Exchange product base will grow as only a limited number of carriers supply this particular type of Medicare Supplement currently and CSG will continue to monitor how those products compare to the brokerage supplements. Below is a table which highlights a snapshot of the findings.

 Age 65 as % of Age 65+Age 66+ as % of Age 65+
20086.9%93.1%
20096.6%93.4%
20106.5%93.5%
20116.7%93.3%
20128.3%91.7%
20137.6%92.4%
20147.3%92.7%
20157.2%92.8%
20167.1%92.9%
CompanyEffective DateAvg. IncreaseComments
American Continental Insurance Company6/1/20165.2%0% - 11%; Varies by state
American Retirement Life Insurance Company5/1/2016-3.6%(18%) - 0%; Varies by state
BlueCross BlueShield of North Carolina6/1/201616.3%
North Carolina
Central States Indemnity Company of Omaha6/1/20167.3%North Dakota
Continental Life Insurance Company of Brentwood, Tennessee6/1/20169.5%3% - 13%; Varies by state
Equitable Life & Casualty Insurance Company4/1-5/1/2166.7%0% - 9.5%; Varies by state
Humana Insurance Company8/1/20163.3%0% - 6%; Varies by state
Loyal Christian Benefits Association5/1/20165.0%Kansas
Medico Corp Insurance Company5/1/20164.5%0% - 9%; Varies by state
Sanford Health Plan4/1/201611.4%11.4%; Varies by state
State Farm Mutual Automobile Insurance Company4/1/2016
3.7%
(3.2%) - 8.7%; Varies by state
UnitedHealthcare Insurance Company4/1/20165.0%3.1% - 7.5%; Varies by state
 UHC Growth %
20085.8%
20095.5%
20103.4%
20116.0%
20128.3%
20138.6%
20148.5%
20157.6%
2016 Q16.9%

*The data is for a 65 year old female, non-tobacco