Deborah Donahue, of Mark Farrah Associates, recently published an article analyzing the growth of Medicare Supplement sales in 2010. Ultimately, the reduction in Medicare Advantage Private Fee for Service plans, the introduction of Medicare Supplements Plan N and Plan M, and the release of Modernized Medicare Supplements all contributed to the overall growth in 2010.
Donahue also breaks down the Medicare Supplement market by company. UnitedHealthcare owns a surprisingly high 32% of the market share. When you add in Mutual of Omaha, these two companies own 43% of all Medicare Supplement polices. What is the saying?… “So go these companies, so goes the market”. As these two companies make changes to rates, underwriting and commission other companies are surely to follow.
Lastly, Donahue also breaks down the Medicare Supplement market by plan type. It’s not surprising that Plan F makes up 44% of all plans. What is interesting are the numbers of Plan N and Plan M that have been sold since June 1, 2010. Donahue writes, “Newly offered Plan N gained 147,912 members since June 2010 when it was introduced. Plan M did not fare so well, with only 265 covered lives.”
If you are selling in the Medicare Supplement market, you should read this article. Deborah Donahue at Mark Farrah Associates does a fabulous job of breaking down the Medicare Market in a quick and easy to understand manner.
Here is a link to the Article: Growth in Newer Medicare Supplement Policies Continues