Two weeks ago CSG Actuarial reported the 3rd quarter 2013 Medicare Supplement enrollment results for market leader United Healthcare, which increased 50,000 over 2nd quarter 2013. We now have updates from other market leaders, summarized below. Also below is an update on Medicare deductibles for 2014 with CSG Actuarial’s perspective on the impact on Medicare Supplement claim trends for 2014.
Aetna Continues Strong Medicare Supplement Growth
Aetna continues to report very strong growth in the Medicare Supplement market. In 3rd quarter 2013, Aetna’s reported Medicare Supplement member in-force counts of 363,000, up 22,000 from 2nd quarter 2013. Aetna’s Medicare Supplement member counts have more than doubled since Aetna acquired Genworth’s Medicare Supplement block during 4th quarter 2011. Aetna’s new sales continue to increase and are now closing in on being in the top 2 of the Medicare Supplement market.
Humana Medicare Supplement Lives and Premiums Increase Again
Humana reported 3rd quarter 2013 Medicare Supplement lives of 92,500, a 2% increase over 2nd quarter 2013 and 23% increase over 3rd quarter 2012. Humana also reported 3rd quarter 2013 Medicare Supplement premium of $46 million, up 28% from 3rd quarter 2012. Humana’s Medicare Supplement sales continue to rank in the top 10 in the market.
Torchmark Reports Medicare Supplement Sales for 3rd Quarter 2013
Torchmark reported 3rd quarter 2013 Medicare Supplement annualized new sales of just over $7 million, slightly higher than 2nd quarter 2013 and down 19% from 3rd quarter 2012. Torchmark’s annualized new business sales over the past four quarters exceeds $43 million, continuing to rank in the top 12 in the overall Medicare Supplement market.
CNO Financial Group Medicare Supplement Sales Down Slightly
CNO Financial Group (parent company of Bankers Life & Casualty, Washington National, and Colonial Penn) reported 3rd quarter 2013 Medicare Supplement sales of $18.7 million, down 2% from 2nd quarter 2013 and down 4% from 3rd quarter 2012. CNO Financial Group also report total 3rd quarter 2013 Medicare Supplement earned premiums of $216 million, a $2 million increase over 3rd quarter 2012. CNO Financial Group’s Medicare Supplement annualized new sales are in the top 5 in the Medicare Supplement market.
2014 Medicare Deductible Changes
CMS announced the 2014 Medicare deductibles last week. The Part B deductible will be unchanged for 2014. This is the first time since 2009 that the Part B deductible remained the same as the prior year. The no change also means the Part B deductible remains lower than it had previously been in years 2010 and 2011.
|Company||Effective Date||Average Increase||Comments|
|Anthem Blue Cross and Blue Shield - Nevada||1/1/14||3.4%||Nevada|
|Anthem Blue Cross Blue Shield - Kentucky||1/1/14||7.0%||Kentucky|
|Anthem Blue Cross Blue Shield - Maine||1/1/14||1.1%||Maine|
|Anthem Blue Cross Blue Shield - New Hampshire||1/1/14||-4.6%||New Hampshire|
|Anthem Health Plans||1/1/14||6.7%||Connecticut|
|Anthem Insurance Company||1/1/14||4.0%||Indiana|
|Assured Life Association||1/1/14||7.8%||2% - 14.4%; Varies by state|
|Avalon Insurance Company||1/1/14||14.7%||Pennsylvania|
|BCBS of KS Inc||1/1/14||0.0%||Kansas|
|Blue Cross and Blue Shield of Kansas City||1/1/14||2.3%||(0.1%) - 8%; Varies by state|
|Blue Cross Blue Shield of Montana||1/1/14||7.7%||Montana|
|BlueCross BlueShield of Georgia||1/1/14||9.2%||Georgia|
|BlueCross BlueShield of Vermont||1/1/14||3.7%||Vermont|
|BlueCross BlueShield of Wyoming||1/1/14||5.0%||Wyoming|
|Central States Indemnity Company of Omaha||2/1/14||3.2%||(4%) - 7%; Varies by state|
|Colonial Penn Life Insurance Company||1/1/14||-3.8%||(19%) - 12%; Varies by state|
|Columbian Mutual Life Insurance Company||1/1/14||12.0%||Oregon|
|Family Life Insurance Company||12/1/2013-2/1/2014||8.2%||0% - 9.9%; Varies by state|
|Geisinger Health Plan||1/1/14||19.1%||Pennsylvania|
|Gerber Life Insurance Company||1/1/14||7.1%||0% - 17.7%; Varies by state|
|Government Personnel Mutual Life Insurance Company||1/1/14||7.0%||Oregon|
|Health Net Life Insurance Company||1/1/14||7.7%||Oregon|
|Healthy Alliance Life Insurance Company (Anthem/Wellpoint)||1/1/14||5.1%||Missouri|
|Heartland National Life Insurance Company||1/1/14||7.1%||Texas|
|Highmark Blue Cross Blue Shield West Virginia||1/1/14||2.9%||West Virginia|
|Humana Insurance Company||1/1-3/1/2014||2.5%||(9.6%)-8.8%; Varies by state|
|KSKJ Life, American Slovenian Catholic Union||1/1/14||8.3%||Indiana|
|Liberty National Life Insurance Company||1/1/14||6.0%||Ohio|
|Manhattan Life Insurance Company||11/13/13||-3.0%||Maryland|
|Medico Insurance Company||1/1/14||10.5%||0% - 19%; Varies by state|
|Mutual of Omaha Insurance Company||1/1/14||18.0%||Hawaii|
|Physicians Mutual Insurance Company||1/1/14||4.0%||Pennsylvania|
|Reserve National Insurance Company||6/1/13||12.5%||Ohio|
|Sterling Life Insurance Company||1/1/14||7.9%||(25.3%) - 25%; Varies by state|
|Thrivent Financial for Lutherans||1/1-2/1/2014||5.4%||4% - 8.5%; Varies by state|
|United American Insurance Company||1/1/14||1.1%||(20%) - 18.4%; Varies by state|
|United Commercial Travelers of America||12/1/13||9.5%||Tennessee|
|United National Life Insurance Company of America||1/1/14||6.0%||(17.6%) - 14.5%; Varies by state|
|United of Omaha Life Insurance||1/1/14||6.9%||0.0% - 16%; Varies by state|
|UnitedHealthcare Insurance Company||1/1/14||1.6%||(10.2%) - 9.7%; Varies by state|
|Woodmen of the World||1/1/14||0.0%||Montana|
The Part A deductible for 2014 will be $1,216, an increase of $32 compared to the 2013 Part A Deductible. This increase is similar to increases in prior years.
|1-2 Year Look back|
|3-5 Year Look back|
|6-10Year Look back|
|Lifetime Look Back|
CSG Actuarial projects these 2014 deductible changes will drive slightly lower Medicare Supplement claim trends (and possible rate revisions) in 2014 versus 2013.
About CSG Actuarial
CSG Actuarial is a leading provider of actuarial and competitive information for supplemental products. CSG has more than 50 years of actuarial experience with pricing, product development and competitive intelligence within the Medicare Supplement, Critical Illness, Cancer, Final Expense, and Hospital Indemnity markets. Call 855-861-8776 or email firstname.lastname@example.org to learn more.