Medicare Supplement Revival Seen by Mark Farrah Associates
KENNEBUNK, Maine--(BUSINESS WIRE)--The latest Medicare Supplement membership figures show continued growth in the number of new policies being issued. The number of newer policies, those issued in the last three years, increased by 5.9% in 2010 when compared to the 2009 base. Growth increased compared to 2009 when carriers had experienced 1.3% growth in new policies. Termination of Medicare Advantage private-fee-for-service plans throughout much of the country and the introduction of new Plans M and N options have resulted in a resurgence of Medicare Supplement membership. These numbers are expected to be higher when all plans have reported data for 2010
Medicare Supplement plans covered 9.453 million seniors as of December 31, 2010, according to annual financial statements filed with the National Association of Insurance Commissioners (NAIC). Though total membership declined from 9.508 million in 2009, attrition was primarily due to erosion of the older policy base. Between the years 2007 and 2010, carriers collectively reported a total of 93,284 fewer covered lives. Plan F, the most popular design that covers Medicare deductibles as well as coinsurance and copayment costs was purchased by 44% of people with Medigap coverage in 2010. Newly offered Plan N gained 147,912 members since June 2010 when it was introduced.
In the latest Healthcare Business Strategy report "Growth in Newer Med Supp Policies Continues," Mark Farrah Associates (MFA) discusses preliminary results for the Medigap market. 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 "Growth in Newer Med Supp Policies Continues," visit the Healthcare Business Strategy library on Mark Farrah Associates' website www.markfarrah.com.
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™, Health Insurer Insights™ and Health Plans USA™.
Mark Farrah Associates
Debra Donahue, 207-985-8484