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 With the first of the Boomer generation turning 65 in 2011 the Medicare Supplement market is set to explode; and, in preparation, Medicare Supplement membership grew 5.9% in 2010. Some contributing factors were several Medicare Advantage plans being terminated and the introduction of Plans M and N. Not only is the percent expected to increase once all of the plans have reported their data, it is an over 4% increase from 2009 where there was a 1.3% growth on new policies. As of the end of 2010, Medicare Supplement plans covered approximately 9 million seniors, with 44% choosing Plan F; and, 147,912 choosing Plan N since it was released in June 2010.
For 2010 Medicare Supplement plans earned $20.045 billion in premiums and incurred $15.857 in claims paid out. The aggregate loss ratio of incurred claims of premiums lowered from 80% in 2007-2009 to 79% in 2010. Of the leading Medicare Supplements UnitedHealth, AARP, dominated with 32% of the market share. Mutual of Omaha ranked second with an 11% share, rising from 8% in 2009.
Additionally, companies are beginning to diversify their portfolios to include Medicare Supplements, Medicare Advantage, and stand alone Part D coverage in order for more opportunities in the growing senior market.
Please give us your feedback!
Did you see an increase in clients in 2010 over 2009? an even bigger increase thus far in 2011?
Source: Insurance News, Mark Farrah Associates
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