As of December 31, Medicare supplement plans covered over 11.9 million seniors, a 6.5% increase from 2014. The study by Mark Farrah Associates reveals that enrollment in Medicare supplement plans increased by 729,495 covered lives from 2014 to 2015. UnitedHealth is the industry leader, commanding about 39% of the market growth, but several other Medicare supplement carriers also experienced membership gains in 2015.
More than 5 million new Medigap policies were issued in the past three years. Plan F accounted for 55% of the market in 2015, which covers Medicare deductibles and coinsurance and copayment costs. Carriers are selling products at competitive rates while maintaining favorable loss-ratios. The aggregate loss ratio was 77.5% (incurred claims as a percentage of earned premiums). With about 55 million Medicare eligibles, more insurers are diversifying their senior market portfolios