The Medicare Supplement market continues to experience higher claims, and carriers are attempting to mitigate the higher loss ratios by pursuing larger rate increases. Throughout 2024 rate increases trended up from 2023 levels. Now, results through the first quarter are in.
The graphics below summarize the average historial rate increases of the most prominent carriers in the Med Supp space. This data pertains only to open blocks of business and does not consider instances where companies are implementing large rate increases as they re-enter the market using old paper. All carriers besides the largest six have been grouped together as “Other”.
Each group is showing larger rate increases in 2025 than in previous years. The data suggests that Aetna and Mutual of Omaha have been pursuing significantly larger rate increases in 2025. Alternatively, Cigna and Humana rate increases are more aligned with what they have taken historically.
For Plan N, all groups display larger increases in 2025 than usual. Some companies show a more gradual reaction to increasing claims trends while others have acted more swiftly. The “Other” category shows that most companies are taking signficantly elevated Plan N increases in both 2024 and 2025.
For all plans, Telos expects the trend of higher rate actions to continue through 2025 as claims come in higher than previous years and elevate loss ratios.