Medicare Supplement Market Premium Grows 5% to $24.3 Billion

CSG Actuarial has compiled information from the NAIC and other sources and is reporting that total earned premiums in the Medicare Supplement market in 2013 totaled $24.3 billion, a 5% increase over 2012.

A few other notes of interest:

The total Medicare Supplement lives covered in 2013 increased to almost 11 million, up 4% from 2012.

The top 5 carriers in terms of 2013 Medicare Supplement premiums were the same as in 2012:

AM Best Rating Changes for 2014

Company NamePrevious Ranking/OutlookNew Ranking/OutlookConfirmed?Effective Date
American Republic Corp Insurance CompanyA- / Negative A- / Stable Yes 2/6/14
American-Amicable Life Insurance Company of Texas A- / Stable A / StableYes 2/27/14
Conseco Insurance CompanyB- / StableB- / PositiveNo3/3/14
Equitable Life & Casualty Insurance CompanyB / Developing B / StableNo1/1/14
Mutual of Omaha Insurance CompanyA+ / NegativeA+ / Stable Yes 12/30/13
Occidental Life Insurance Company of North CarolinaA- / Stable A / Stable Yes 2/27/14
United of Omaha Life InsuranceA+ / NegativeA+ / Stable Yes 12/30/13
United World Life Insurance CompanyA+ / NegativeA+ / Stable Yes 12/30/13
AvMed MedicareNot Rated B+ / Stable Yes 12/13/13
Bravo HealthA- / Stable A- / Postive Yes 2/14/14
Colorado Choice Health PlansB+ / StableB+ / Negative No4/16/14
HealthSpring Life & HealthNot Rated A- / Postive No2/13/14

The overall claim loss ratio in the Medicare Supplement market in 2013 was 77.1%, the lowest it has been since 1993, and 12 of the top 15 carriers experienced lower claim loss ratios in 2013 than in 2012. As CSG Actuarial has been reporting in past blogs, Medicare and Medicare Supplement plans continue to experience lower claim trends and our actuarial analysis indicates that those lower claim trends were a primary driver of the lower loss ratios in 2012 and 2013.

The top 10 carriers for growth in Medicare Supplement policies in-force between 2012 and 2013 were:

S&P Rating Changes for 2014

Company NamePrevious RankingNew Ranking
American Republic Corp Insurance CompanyApiBBBpi
Blue Cross Blue Shield of Wisconsin A-A+
BlueCross BlueShield of North DakotaA-BBB+
Conseco Insurance CompanyBB+
Humana Health Benefit Plan of Louisiana, Inc.A-A
Humana Insurance Company of KentuckyA-A
Humana Insurance Company of New YorkA-A
UnitedHealthcare Insurance Company AAA-
Aetna MedicareA-A+
Blue Cross Blue Shield of TexasNot RatedAA-
HealthPartnersA-A
Highmark, Inc.AA-
These rankings are produced and published by AM Best Rating Center and the Standard and Poor's Rating Services. Please visit their websites at www.ambest.com and www.standardandpoors.com to get more information on how they create these rankings.

Look for more information in June when CSG Actuarial releases its 4th Annual Future of Medicare Supplement Market Projection.

About CSG Actuarial
CSG monitors senior markets to provide the most up-to-date competitive intelligence in the industry. CSG DataMartâ„¢ includes premium rate and underwriting information for more than 200 companies. Call 855-861-8776 or email info@csgactuarial.com to learn more.