June 18, 2009
Medicare Supplement Revival Seen by Mark Farrah Associates

KENNEBUNK, Maine--(BUSINESS WIRE)--Leading insurers, such as WellPoint, have indicated that Medicare Supplement (also referred to as Medigap or Med Supp) products will play a significant role in their strategy to attract more senior members during 2009. Designed to cover gaps in the traditional Medicare program, Medicare Supplement policies emerged in 1966 side-by-side with the introduction of Medicare. After several years of about 3% per annum membership declines (based on MFA research), Med Supp plans finally saw an increase for year-end 2008 of 0.6% total covered lives.

As of December 31, 2008, 22% of all Medicare eligible beneficiaries, roughly 9.6 million individuals, were enrolled in a Medigap plan. Over 196 companies offered Medicare Supplement products, with eight companies insuring 59% of total covered lives. UnitedHealth Group, the largest company offering Med Supp plans, serves nearly 30% of the market.

All three of the top Med Supp companies, UnitedHealth, WellPoint and Mutual of Omaha saw enrollment growth between 2007 and 2008. More than 65% of all seniors were enrolled in either Medicare Supplement or Medicare Advantage products as of December 2008. As an alternative product to managed Medicare, Medicare Supplement products are holding their own. And, to the surprise of many, are growing once again.

In the latest Healthcare Business Strategy report “Medicare Supplement Revival,” Mark Farrah Associates (MFA) discusses the Medigap market. Using MFA’s new comprehensive data set, Medicare Supplement Market Data -- that include state-by-state membership, premiums, claims and loss ratios for Medicare Supplement plans nationwide -- data filed with the National Association of Insurance Commissioners is aggregated and analyzed exclusively by Mark Farrah Associates. To read the full text of “Medicare Supplement Revival,” visit the Healthcare Business Strategy 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™, the Health Coverage Portal™, Health Insurer Insights™ and Health Plans USA™. Medicare Supplement data is included as a sub-series in Health Coverage Portal™.

Contacts:
Mark Farrah Associates
Debra Donahue, 207-985-8484
www.markfarrah.com