MCMURRAY, Pa., April 29, 2016 /PRNewswire/ -- Medicare Supplement plans, also known as Medigap or Med Supp plans, covered over 11.9 million seniors as of December 31, 2015, a 6.5% increase from 2014. As reported in Mark Farrah Associates' (MFA's) latest Healthcare Business Strategy brief, aggregated data from annual financial statements filed with the National Association of Insurance Commissioners (NAIC) revealed enrollment in Medicare Supplement plans increased by 729,495 covered lives between 2014 and 2015. Although UnitedHealth remained the industry leader in this segment, commanding about 39% of market growth, several other Medicare Supplement carriers also experienced membership gains in 2015.
According to MFA's report, more than 5 million new Medigap policies were issued within the last three years. Medicare Supplement plans collectively earned $26.230 billion in premiums and paid out $20.320 billion in claims during 2015. The aggregate loss ratio (incurred claims as a percent of earned premiums) was 77.5%. Mark Farrah Associates also assessed standardized plan type preferences in 2015. Plan F, the most popular design, covers Medicare deductibles as well as coinsurance and copayment costs, enrolled almost 6.5 million Med Supp members and accounted for 55% of the market in 2015.
Many Med Supp carriers have sustained a significant presence in the market by selling products at competitive rates while maintaining favorable loss ratio levels. With approximately 55 million Medicare eligibles, more insurers continue to diversify their senior market portfolios to leverage opportunities across all product lines in this growing segment. 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.
At the 8th annual Issues & Trends in Medicare Supplement Insurance conference in Kansas City, MO, LuAnne Farrah, President of Mark Farrah Associates, addressed The Medicare Landscape: Spotlight on Med Supp in her keynote speech presentation. To request a copy of the presentation slides, please email email@example.com.
About Mark Farrah Associates (MFA)
Mark Farrah Associates (MFA) is a leading aggregator of health plan market data and provides analysis tools for the healthcare industry. Our products include Med Supp Market Data™, Medicare Business Online™, Medicare Benefits Analyzer™, Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, and Health Plans USA™.
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SOURCE Mark Farrah Associates