Continued Growth in Med Supp Market for 2014 according to Mark Farrah Associates
KENNEBUNK, Maine, May 6, 2015 /PRNewswire/ -- Membership in Medicare Supplement plans continued to increase in 2014, according to a Healthcare Business Strategy report released by Mark Farrah Associates (MFA). Medicare Supplement plans, also known as Medigap or Med Supp plans, covered approximately 11.2 million seniors as of December 31, 2014, a 5.2% increase from 2013. Between 2013 and 2014, enrollment in Medicare Supplement plans increased by 551,135 covered lives. Though UnitedHealth was the segment growth leader, many other insurers experienced growth in Med Supp business.
According to MFA's report, Medicare Supplement plans collectively earned $24.743 billion in premiums and paid out $18.951 billion in claims during 2014. The aggregate loss ratio (incurred claims as a percent of earned premiums) was 76.6%. Mark Farrah Associates also assessed standardized plan type preferences in 2014. Plan F, the most popular design, enrolled more than 6 million Med Supp members and accounted for 54% of the market. Membership in Plan F increased by 494,599 enrollees between 2013 and 2014. Enrollment growth was also significant in standardized plan types G and N, with increases of 141,024 and 188,256 members.
The Affordable Care Act has had little impact on Medicare Supplement business. Reforms in recent years have not imposed major plan design changes or minimum loss ratio requirements for these plans. Many Med Supp carriers have sustained a significant presence in the market by selling products at competitive rates while maintaining favorable loss ratio levels. Using MFA's Medicare Supplement Market Data from the Health Coverage Portal™ -- that includes state-by-state membership, premiums, claims and loss ratios as reported by plans in NAIC annual financial statements – MFA will continue to track changes in this important product segment.
To read the full text of "Med Supp Growth Bodes Opportunity for Insurers", visit the Analysis Briefs library on Mark Farrah Associates' website www.markfarrah.com.
About Mark Farrah Associates (MFA)
MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, Medicare Benefits Analyzer™ Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, and Health Plans USA™.
Contact:
Mark Farrah Associates
Ann Marie Wolfe, 412-595-7124
Logo - http://photos.prnewswire.com/prnh/20141003/150139
SOURCE Mark Farrah Associates
Share this article