KENNEBUNK, Maine--(BUSINESS WIRE)--The latest Medicare Supplement membership and financial figures show continued growth in the number of new policies being issued, according to a new Healthcare Business Strategy report released by Mark Farrah Associates (MFA). MFA found that the number of policies issued in the last three years, increased by 1.3% in 2013 when compared to the 2012 enrollment data. Aggregated data from annual financial statements filed with the National Association of Insurance Commissioners (NAIC) revealed Medicare Supplement plans, also known as Medigap plans, covered 10.5 million seniors as of December 31, 2013, a 3.8% from 2012.
According to MFA, a shift is also occurring among plan types. As Medicare beneficiaries are switching from Plan types C, J, L and P (pre-standardized), the most popular plan in 2013 was Plan F which covered 52% of Medigap enrollees.
Medicare Supplement plans earned $23.277 billion in premiums and incurred $17.895 billion in claims during 2013. The aggregate loss ratio (ALR), incurred claims as a percent of earned premiums, dropped to 76.9% in 2013, down from the 80% ALR Medigap plans maintained from 2007 to 2011, and a decline from 78.2% in 2012. According to Debra Donahue, a Vice President at MFA, "Removal of the prescription drug benefit, from Medigap plans, may be responsible for the drop in the Medigap ALR". Medigap policies sold after 2005 are no longer permitted to include prescription drug coverage.
In the latest Healthcare Business Strategy report Mark Farrah Associates discusses 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 report “Med Supp Enrollment Continues to Grow”, please visit the Analysis Briefs 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™, County Health Coverage™, Health Insurer Insights™, and Health Plans USA™.