Mark Farrah Associates Takes Fresh Look at Medigap Market

KENNEBUNK, Maine--(BUSINESS WIRE)--As Medicare Supplement insurers are positioning to gain market share, Mark Farrah Associates (MFA) is closely monitoring competitive shifts in the senior market. New Plans M and N will be introduced on June 1, 2010 and these plans, with lower premiums, are expected to gain traction and become popular choices among seniors. MFA recently released an analysis brief about Medigap. Here are some interesting highlights from New Medicare Opportunities with Medigap.

Medigap Market Position

The age 65+ senior segment with more than 45 million people is one of the most coveted target markets in the healthcare industry today. Health plans, ancillary benefit plans, providers and vendor stakeholders remain intently focused on senior market business opportunities. Medigap plans have held their own in recent years as they compete with a multitude of Medicare Advantage plans. More than 9.6 million have Medicare Supplement policies compared with 11.3 million covered by Medicare Advantage.

Traditional health plans and multiline carriers compete in the Medicare Supplement space. Though UnitedHealth, with a longstanding AARP contract, has dominated, there are hundreds of Medigap plans throughout the United States. Five companies cover 52% of the market while the remaining 48% is covered by all other carriers.

Tracking Medigap Business

Tracking short-term gains and losses within the Medigap market is challenging because month-to-month enrollment reports are not readily available. Early open enrollment results indicate Medicare Advantage (MA) gains were much smaller this year than in previous years, suggesting Medigap plans are making headway. Mark Farrah Associates will be analyzing 2009-2010 data and new Medicare Supplement reports will be available soon through the Health Coverage Portal ^TM.

For more information about MFA’s Medicare Supplement market analysis, call 207.985.8484. Visit www.markfarrah.com to read the full text of this market brief.

About Mark Farrah Associates (MFA)

Mark Farrah Associates (MFA) is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Our products include Medicare Business Online™, Health Coverage Portal™, Health Insurer Insights™, and Health Plans USA™.

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