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 Name||Previous Ranking/Outlook||New Ranking/Outlook||Confirmed?||Effective Date|
|American Republic Corp Insurance Company||A- / Negative||A- / Stable||Yes||2/6/14|
|American-Amicable Life Insurance Company of Texas||A- / Stable||A / Stable||Yes||2/27/14|
|Conseco Insurance Company||B- / Stable||B- / Positive||No||3/3/14|
|Equitable Life & Casualty Insurance Company||B / Developing||B / Stable||No||1/1/14|
|Mutual of Omaha Insurance Company||A+ / Negative||A+ / Stable||Yes||12/30/13|
|Occidental Life Insurance Company of North Carolina||A- / Stable||A / Stable||Yes||2/27/14|
|United of Omaha Life Insurance||A+ / Negative||A+ / Stable||Yes||12/30/13|
|United World Life Insurance Company||A+ / Negative||A+ / Stable||Yes||12/30/13|
|AvMed Medicare||Not Rated||B+ / Stable||Yes||12/13/13|
|Bravo Health||A- / Stable||A- / Postive||Yes||2/14/14|
|Colorado Choice Health Plans||B+ / Stable||B+ / Negative||No||4/16/14|
|HealthSpring Life & Health||Not Rated||A- / Postive||No||2/13/14|
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 Name||Previous Ranking||New Ranking|
|American Republic Corp Insurance Company||Api||BBBpi|
|Blue Cross Blue Shield of Wisconsin||A-||A+|
|BlueCross BlueShield of North Dakota||A-||BBB+|
|Conseco Insurance Company||B||B+|
|Humana Health Benefit Plan of Louisiana, Inc.||A-||A|
|Humana Insurance Company of Kentucky||A-||A|
|Humana Insurance Company of New York||A-||A|
|UnitedHealthcare Insurance Company||A||AA-|
|Blue Cross Blue Shield of Texas||Not Rated||AA-|
Look for more information in June when CSG Actuarial releases its 4th Annual Future of Medicare Supplement Market Projection.
About CSG Actuarial
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