Wednesday, March 20, 2013

Medigap coverage sales rose by 9% in 2012, projections good for future

Posted: February 19, 2013
Medicare supplemental insurance sales grew by 9% in 2012, according to an industry research firm.
CSG Actuarial, an Omaha-based firm that specializes in Medicare-related insurance products, released data showing that total annualized new premium of the coverage – commonly known as Medigap insurance – rose to $3.1 billion last year.

Total Medigap premium for 2011 was $2.85 billion. About 10 million Americans are covered by Medigap coverage.

Fourth-quarter results for 2012 remained strong, reflecting a trend for the year.

 “Medicare supplement companies continued the pattern of strong growth that was evident throughout the entire year,” wrote Doug Feekin, principal and consulting actuary for CSG Actuarial, in a recent CSG news update. “Aetna, Humana, Torchmark, CNO Financial and UnitedHealthcare, all reported an uptick in Medicare supplement business during fourth quarter.”

If 2012 was good, this year could be even better.

“Based on our analysis, things look promising for Medicare supplement,” CSG reported at the close of 2012. Last year was “positive to the Medicare supplement market, and we’re projecting more to come in 2013.”
Feekin reported the following 2012 fourth-quarter results: (click here to see the actual post at CSG Actuarial’s website)

Aetna Continues Strong Medicare Supplement Growth in 2012
Aetna reported fourth quarter 2012 Medicare supplement policy in-force counts of 238,000, an 18% increase over results at 3rd quarter 2012 and 46% higher than fourth quarter 2011. Aetna’s new sales continue to increase and are now in the top five of the Medicare supplement market.

Humana Lives and Premiums Increase Again in Fourth Quarter 2012
Humana reported fourth quarter 2012 Medicare supplement policy in-force counts of 77,400, a 3% increase over 3rd quarter 2012 and 30% increase over fourth quarter 2011. Humana also reported fourth quarter 2012 Medicare supplement premium of $39 million, up 8% from 3rd quarter 2012 and 39% over fourth quarter 2011. Humana’s Medicare supplement sales rank in the top eight in the market.

Torchmark Medicare Supplement Sales Increase to Highest Level Since 2004
Torchmark reported fourth quarter 2012 Medicare supplement annualized new sales of $21.6 million, a 51% increase over fourth quarter 2011. Torchmark reported 2012 full year Medicare supplement sales of $45.9 million, a 22% increase over 2011 and its highest annual result since 2004. Torchmark’s 2012 Medicare supplement annualized new sales ranked in the top 10 in the market.

CNO Financial Group Medicare Supplement Sales Top $90 Million
CNO Financial Group (parent company of Bankers Life & Casualty, Washington National, and Colonial Penn) reported 2012 Medicare supplement annualized new sales of $93 million, a 4% increase over 2011. CNO Financial Group’s Medicare supplement annualized new sales are in the top five in the Medicare supplement market.

UHC Maintains Medicare Supplement Growth
UnitedHealthcare (UHC) released fourth quarter 2012 financials on Jan. 17, 2013, noting the addition of 45,000 more lives in the fourth quarter. The UHC report featured standardized and modernized policy in-force counts of 3,180,000 as of Dec. 31, 2012, an increase of 245,000 – or 8.3% – increase since Dec. 31, 2011.

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