Medicare Supplement Market Nears $40 Billion

The Medicare supplement market demonstrated strong growth in premium again in 2025.  While the total lives decreased slightly, the loss ratio saw its largest single year jump since 2021, when the industry was coming out of the COVID-19 impact of 2020. This information is based on the experience reported within the Medicare Supplement Insurance Exhibit (MSIEE) that carriers submit within their Annual Statement to the NAIC*. 

The following table shows the total market results for the past three years (in 1,000s):

The 6.2% growth in premium that is realized in 2025 is the second consecutive year where growth exceeded 6.0%.  This follows growth ranging from 1.5-1.6% in 2021-2023.  Additionally, the $39.9 billion in premium establishes a new market high.

The 0.3% decrease in 2025 Medicare supplement lives unwound some of the 1.0% growth realized in 2024.  However, the 13.7 million lives in 2025 are still higher than the 13.6 million reported in 2023.

The total market loss ratio increased by 1.1% and established a new market high.  The loss ratio has continued to steadily increase post-2020.

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* The information included in this blog post reflects the data as reported to the NAIC.  It is subject to change throughout the year as additional carriers report or correct previously submitted data.