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.

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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.

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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.

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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.

CompanyEffective DateAverage IncreaseComments
Anthem Blue Cross and Blue Shield - Nevada1/1/143.4%Nevada
Anthem Blue Cross Blue Shield - Kentucky1/1/147.0%Kentucky
Anthem Blue Cross Blue Shield - Maine1/1/141.1%Maine
Anthem Blue Cross Blue Shield - New Hampshire1/1/14-4.6%New Hampshire
Anthem Health Plans1/1/146.7%Connecticut
Anthem Insurance Company1/1/144.0%Indiana
Assured Life Association1/1/147.8%2% - 14.4%; Varies by state
Avalon Insurance Company1/1/1414.7%Pennsylvania
BCBS of KS Inc1/1/140.0%Kansas
Blue Cross and Blue Shield of Kansas City1/1/142.3%(0.1%) - 8%; Varies by state
Blue Cross Blue Shield of Montana1/1/147.7%Montana
BlueCross BlueShield of Georgia1/1/149.2%Georgia
BlueCross BlueShield of Vermont1/1/143.7%Vermont
BlueCross BlueShield of Wyoming1/1/145.0%Wyoming
Capital BlueCross1/1/140.0%Pennsylvania
Central States Indemnity Company of Omaha2/1/143.2%(4%) - 7%; Varies by state
Colonial Penn Life Insurance Company1/1/14-3.8%(19%) - 12%; Varies by state
Columbian Mutual Life Insurance Company1/1/1412.0%Oregon
Family Life Insurance Company12/1/2013-2/1/20148.2%0% - 9.9%; Varies by state
Geisinger Health Plan1/1/1419.1%Pennsylvania
Gerber Life Insurance Company1/1/147.1%0% - 17.7%; Varies by state
Government Personnel Mutual Life Insurance Company1/1/147.0%Oregon
Health Net Life Insurance Company1/1/147.7%Oregon
Healthy Alliance Life Insurance Company (Anthem/Wellpoint)1/1/145.1%Missouri
Heartland National Life Insurance Company1/1/147.1%Texas
Highmark Blue Cross Blue Shield West Virginia1/1/142.9%West Virginia
Humana Insurance Company1/1-3/1/20142.5%(9.6%)-8.8%; Varies by state
Independence BCBS1/1/143.2%Pennsylvania
KSKJ Life, American Slovenian Catholic Union1/1/148.3%Indiana
Liberty National Life Insurance Company1/1/146.0%Ohio
Manhattan Life Insurance Company11/13/13-3.0%Maryland
Medico Insurance Company1/1/1410.5%0% - 19%; Varies by state
Mutual of Omaha Insurance Company1/1/1418.0%Hawaii
Physicians Mutual Insurance Company1/1/144.0%Pennsylvania
Reserve National Insurance Company6/1/1312.5%Ohio
Sterling Life Insurance Company1/1/147.9%(25.3%) - 25%; Varies by state
SummaCare, Inc.1/1/1414.7%Ohio
Thrivent Financial for Lutherans1/1-2/1/20145.4%4% - 8.5%; Varies by state
United American Insurance Company1/1/141.1%(20%) - 18.4%; Varies by state
United Commercial Travelers of America12/1/139.5%Tennessee
United National Life Insurance Company of America1/1/146.0%(17.6%) - 14.5%; Varies by state
United of Omaha Life Insurance1/1/146.9%0.0% - 16%; Varies by state
UnitedHealthcare Insurance Company1/1/141.6%(10.2%) - 9.7%; Varies by state
Woodmen of the World1/1/140.0%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.

CRITERIA
CONDITIONS
Dementia
Hodgkin's Disease
Emphysema
Tobacco Use
Bedridden
Don't Ask
37%%
50%
50%
88%
63%
1-2 Year Look back
30%%
30%
40%
6%
37%
3-5 Year Look back
13%%
10%
10%
0%
0%
6-10Year Look back
3%
0%
0%
0%
0%
Lifetime Look Back
17%
10%
0%
6%
0%
*Percentages were taken from over 30 of the top Hospital Indemnity Insurance products, based upon NAIC data.

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 info@csgactuarial.com to learn more.