Medicare supplement insurance continues to be a popular product choice for individuals that want additional financial protection from the copayments, coinsurance, and deductibles that are present within original Medicare. With the Medicare eligible population experiencing significant growth year-over-year, the demand for Medicare supplement insurance will remain high.
Telos Actuarial reported in its 13th Annual Market Projection that the number of Medicare beneficiaries is expected to grow by nearly 14 million lives over the next ten years, equating to an annualized growth rate of 1.9%.
As shown in the following graphs, this influx of new beneficiaries is anticipated to result in the growth of individuals who elect to pair their Original Medicare coverage with a Medicare supplement policy. Using values in line with historical market penetration rates, it is projected that the Medicare supplement market will add over 3 million lives and over $16.3 billion of earned premium within the next 10 years. These anticipated annualized growth rates exceed those projected within the total Medicare beneficiaries.
With this level of projected growth, the Medicare supplement market will continue to offer robust opportunities for carriers, reinsurers, distributors, and third-party administrators.