Underwriting is the process assessing risk of issuing insurance. Undewriters evaluate applications,
Apparently, a lot of people…
This is summarized information from a recent report by Gorman Health Group entitled: “Market Trends: Medicare Supplement.”
Medicare Supplement Trends
Did you know that, as of the end of 2015, nearly 1 in 4 Medicare beneficiaries receives supplemental Medigap coverage? This means, there are almost 12 million Medigap enrollees. That’s a lot of people! This is a 22% increase from the number of enrollees in 2010. Each year, this growth percentage steadily climbs, from 2% in 2011 to 6% in 2015.
While the percentage of Medicare Supplement policyholders altogether continues to increase each year, there is a large variation in the percentage of beneficiaries with a Medigap policy in each state. In the majority of states (30 total), 20-29% of Medicare beneficiaries hold a Medicare supplement policy. However, Medigap penetration rates are as low as 3% in Hawaii and as high as 51% in Nebraska. The states with the highest Medigap penetration (above 40%) are clustered in the Plains States: Nebraska, Kansas, Wyoming, South Dakota and North Dakota.
Which Medigap Plan Is the Most Popular?
Nearly 6.5 million Medicare Supplement policyholders (55%) are enrolled in Medicare supplement Plan F, making it the most popular. Next in popularity are Plans N and C, both with just over 960,000 enrollees. Plans L and M consistently hold the lowest enrollment. For a refresher on the features and benefits of the different Medigap plans, please see our Medigap Plan Comparison Chart.
What is the Future of Medigap?
There’s no way to know for certain what is to come. But we can confidently predict that the number of Medigap enrollees will continue to grow exponentially each year. If these trends continue (which we think they will!), we can safely say that when the numbers come out for 2016 enrollment, the number of enrollees will have increased to well over 12 million.
Medicare Supplement Insurance has historically been and will continue to be a vital component of Medicare coverage, covering that 20% gap that causes fear for so many Medicare beneficiaries. If you have any questions about Medicare supplements, or you would like to get a free quote on a Medicare supplement policy from 30 of the top carriers, please call us to speak with one of our friendly and knowledgeable agents at (800) 310-2550. We look forward to hearing from you soon!