The Medicare Supplement Application: Lookback Periods - Part 2
Back in June, our blog discussed the use of lookback periods within Medicare supplement applications.
In short, lookback periods in Medicare supplement applications are a big deal. They shape risk assessment, pricing, and client outcomes. For insurers and brokerage agents, understanding them is essential for making smart decisions and getting the best results in a competitive market.
Diving into the Data: Prevalence of Common Conditions
To provide you with a snapshot of underwriting conditions in the Medicare supplement market, we have returned to the Medicare supplement insurance applications of 95 carriers to identify the most prevalent health conditions that insurers inquire about.
While this abbreviated examination provides us with invaluable insights into insurers' risk assessment strategies and policy-setting practices, we can complete a more detailed analysis tailored to your specific needs and those of your clients, please reach out to the Telos Actuarial team. We're here to partner with you and provide the insights you need.
To enhance clarity and visual appeal, we have opted to abbreviate certain health conditions. Here are the shortened versions we used:
As we identified in June, inquiries related to Kidney Disease/Failure, Dialysis, and Renal Insufficiency/Failure feature prominently, appearing in 97.89% of the applications we examined. Similarly, questions pertaining to Internal Cancer and Stroke are prevalent, found in 96.84% of applications.
Data derived from CSG Actuarial, LLC. (2024)
Diving into Data: Lookback Periods Under 5 Years for Top Conditions
Next, we will take a deeper dive into the lookback periods that are under 5 years and associated with some of the most common medical conditions in Medicare supplement insurance applications.
Among applications that specifically inquired about Rheumatoid Arthritis and Heart Disease, their lookback period was less than 5 years in over 90% of cases. However, for inquiries regarding Arterial Fibrillation, Dementia/Alzheimer's, and COPD, the lookback period was less than 5 years in fewer than 50% of applications.
Data derived from CSG Actuarial, LLC. (2024)
When we dive deeper into this subset of applications using lookback periods of less than 5 years, we note the following:
over 50% only use a 2-year look back period for Rheumatoid Arthritis, Mental/Nervous Disorder, Stroke, Heart Disease, and Arterial Fibrillation.
the two most common conditions that utilize a 3-year look back are Arterial Fibrillation and Internal Cancer
of the top 11 most prevalent conditions found on Medicare supplement applications, 8 of them were found in over 10% of the applications to use a 5-year lookback period
Data derived from CSG Actuarial, LLC. (2024)
Data derived from CSG Actuarial, LLC. (2024)
Data derived from CSG Actuarial, LLC. (2024)
Elevate Your Strategy: Let's Collaborate!
We invite you to reach out to us for a deeper analysis tailored to your specific needs. If you’re an insurer, our analysis can serve as a valuable benchmarking tool. By comparing your own practices with those prevalent in the industry, you can ensure your offerings remain competitive. Moreover, you can identify potential areas of anti-selection risk if you are not asking about conditions that competitors are considering.
On the other hand, if you’re an agent, these insights can enhance your ability to assist a diverse range of insureds. By understanding which questions are most frequently asked by top companies and their corresponding lookback periods, you can better prepare your clients for the application process and help them find the right coverage.
Whether you’re an agent seeking to better support your clients or an insurer aiming to enhance your competitiveness, we’re here to help. Let’s work together to navigate the complexities of Medicare Supplement applications and make the most of the opportunities they present.
Contact us at info@telosactuarial.com
