The Birthday Rule: A Growing Trend in Medicare Supplement Plans

The Birthday Rule 🎂 is gaining traction across the country, allowing Medicare Supplement policyholders to switch plans without medical underwriting around their birthday each year. Unlike Medicare Advantage, which offers an annual enrollment period under federal regulations, Medicare Supplement plans are state-regulated, meaning there is no nationwide equivalent for annual plan changes.

To bridge this gap, several states have introduced Birthday Rules, and eight more states are currently considering similar legislation. These proposed changes vary in eligibility criteria, plan options, and enrollment windows, signaling a broader shift toward increased consumer flexibility.

States with Proposed Birthday Rules

As of now, eight states have introduced legislation for their own versions of the Birthday Rule.

Here’s a breakdown of the proposed changes:

In addition to these eight pending states, several states already have some form of Open Enrollment or Guaranteed Issue (OE/GI) rules, illustrating the growing popularity of these policies.

👉 View Deep Dive from Medicare Market Insights

While this rule benefits policyholders by offering more choices and opportunities for savings, it also presents challenges for insurers. Reduced underwriting can lead to higher premiums, increased policy lapses, and fewer carriers remaining in the market. Data from states that have already implemented Birthday Rules show an increase in premium rates (9.9% in 2024 vs. 13.0% in 2025) and a decline in carrier participation (e.g., Nevada saw a drop from 34 to 25 carriers in two years). As this trend continues, the Medicare Supplement landscape will likely see shifting risk dynamics, rising costs, and evolving market competition.

How You Can Capitalize on the Growing Birthday Rule Opportunity

With more states adopting Birthday Rules for Medicare Supplement plans, this is a prime opportunity for you to grow your book of business, strengthen client relationships, and increase retention. Here’s how you can take advantage of this evolving landscape:

1. Educate Your Clients & Stay Top of Mind

Many Medicare beneficiaries don’t know they have an annual opportunity to switch Medicare Supplement plans without underwriting. By being the one to inform them, you position yourself as their go-to expert.

• Proactively reach out to clients around their birthday with a reminder about their options.
• Send personalized emails, texts, or even direct mail highlighting potential savings.
• Share quick video tips, social media posts, or host webinars to educate clients and attract prospects.

2. Use the Birthday Rule as a Retention & Referral Tool

The Birthday Rule isn’t just about switching plans—it’s a chance to check in with your clients, offer value, and strengthen loyalty.

• Offer a free annual plan review to make sure they’re still in the best plan for their needs.
• Show them how switching could lower their premiums without medical underwriting.
• Happy clients = more referrals! Ask satisfied clients to introduce you to friends and family who may also benefit.

3. Grow Your Business with New Clients

The Birthday Rule removes a major barrier—underwriting—for clients who felt stuck in their current plan. Use this to your advantage:

• Target Medicare Supplement policyholders who aren’t your clients yet and offer a free policy review.
• Run ads or local marketing campaigns focusing on their ability to switch plans hassle-free.
• Get in front of turning-65 clients and help them understand how this rule benefits them long-term.

Final Thought

The Birthday Rule gives you a built-in reason to connect with clients every year—use it! By staying proactive, educating your clients, and streamlining the process, you can boost retention, generate referrals, and bring in new business all while helping clients get the best coverage possible. 

At PSM Brokerage, we equip agents like you with the resources, tools, and support to take full advantage of opportunities like the Birthday Rule. Whether you're looking to grow your book of business, retain more clients, or expand into new markets, we have the expertise and technology to help you succeed.

Don’t leave potential business on the table. Work with a team that understands the industry and supports your growth every step of the way.

📞 Let’s talk! Schedule a call today to learn how PSM Brokerage can help you maximize the Birthday Rule and beyond.

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