Medicare Supplement Market Remains Strong

Telos Actuarial Publishes 15th Annual Market Projection

Despite some recent headwinds, Medicare supplement coverage will continue to be a popular choice amongst beneficiaries for its consistent benefits and lack of provider networks. As the Medicare-eligible population continues to grow, the outlook for the Medicare supplement market continues to be favorable and presents significant opportunities for carriers and reinsurers willing to participate. Medicare supplement also continues to offer ample opportunities for agents and product administrators to capitalize on the opportunity and provide this important coverage to beneficiaries. 

There have been recent annual declines in total Medicare supplement policyholders, however, this decline slowed in 2024. As of year-end 2024, the number of in force Medicare supplement policies was over 14.14 million, which was a decrease of approximately 5,000 policies from 2023 year-end. It is anticipated that the market will return to annual growth in 2025 and beyond. This return to growth coincides with the continued increases in the Medicare eligible population as well as uncertainty within the Medicare Advantage market.  

Despite the decrease of in force policies, Medicare supplement earned premium grew by over $1.6 billion (4.4%) in 2024. This aspect of the Medicare supplement market is expected to continue to grow to over $50 billion of total earned premium within 5 years and exceed $60 billion by 2034.

An important component embedded within the total earned premium projection is new business premium. The estimated 2024 new business premium was $4.0 billion, which aligned with the estimated 2023 new business premium. It is estimated that new business premium will grow to $4.5 billion in 2034.  

Check out all the underlying details by downloading Telos Actuarial's 15th Annual Market Projection today!

Need a quick refresher on the Medicare supplement product?  Check out our free essentials guide available now in the Telos Actuarial Store.

The Telos Actuarial team boasts over a century of Medicare supplement experience. Therefore, no matter where your company finds itself within the Medicare supplement product journey, we can help.