Who Is the Largest Medicare Supplement Provider?
Navigate the Medicare Supplement market to identify the largest providers. Understand how market share is measured and assess provider stability.
Medicare Supplement plans, often called Medigap, are private insurance policies designed to help cover some of the healthcare costs that Original Medicare (Parts A and B) does not. These plans assist with expenses such as deductibles, copayments, and coinsurance. This article explores how “largest” is determined, identifies current leading providers, explains how to locate official market data, and discusses the importance of financial strength ratings.
How Medigap Market Size is Measured
The size of a Medicare Supplement provider is primarily measured through two key metrics: “direct premiums written” and “lives in force.” Direct premiums written represent the total amount of premium revenue an insurer collects from its policyholders. This metric offers a financial perspective on a company’s market activity and revenue generation within the Medigap segment.
“Lives in force,” also known as policyholders or enrolled members, indicates the number of individuals covered by an insurer’s Medigap plans. This metric provides a direct count of an insurer’s customer base, reflecting its reach and penetration in the Medicare Supplement market. Both direct premiums written and lives in force are important for a comprehensive understanding of a provider’s scale.
These metrics are collected and reported by regulatory bodies, most notably the National Association of Insurance Commissioners (NAIC). The NAIC compiles detailed financial and market share data from insurance companies across the United States. Using consistent metrics, such as those provided by the NAIC, is important when comparing providers. This allows for an objective assessment of market share and helps to track trends.
Current Leading Medicare Supplement Providers
The Medicare Supplement market features several prominent insurers. UnitedHealth, through its long-standing contract with AARP, consistently holds the largest share of the Medigap market. As of December 31, 2024, UnitedHealth covered 32% of the market with 4.3 million members.
Mutual of Omaha ranked as the second largest Medigap provider in 2024, holding a 9.8% market share and covering 1.3 million members. CVS, which includes Aetna, was the third largest with over 1 million enrolled members. These three companies collectively represent a significant portion of the total Medigap policyholders.
Other large and widely recognized providers in the Medicare Supplement space include Blue Cross Blue Shield, Humana, and Cigna. These companies generally characterize leading providers due to their widespread availability across many states, a long-standing presence in the market, and a diverse range of standardized Medigap plan offerings.
Leading companies often offer a comprehensive selection of Medigap plans, such as Plan G and Plan N, which are popular choices among beneficiaries. Plan G remains the most popular plan type in 2024, particularly after Plan F was closed to new enrollees in 2020. Competitive pricing and consistent customer service also contribute to the sustained success of these larger providers.
Finding Official Market Data
The National Association of Insurance Commissioners (NAIC) serves as a primary source for official market data, compiling information from insurers across the United States. Their website typically hosts annual market share reports for various lines of insurance, including Medicare Supplement.
To find these reports, individuals can navigate to the NAIC website and search for “Market Share Reports” or specific terms like “Medicare Supplement Market Share.” These reports often detail countrywide direct written premiums for the top groups and companies.
State insurance department websites also offer localized data and reports. Many state departments of insurance provide consumer resources, including lists of authorized insurers and state-specific market share data. Searching the website of a specific state’s insurance department for “Medicare Supplement data” or “Medigap market share” can yield relevant local statistics.
These official sources provide transparent and aggregated data, allowing interested parties to analyze market trends and identify leading insurers based on reported metrics. Utilizing these resources ensures that comparisons are based on standardized and verified information.
Financial Strength and Stability of Providers
The financial strength and stability of Medicare Supplement providers are important considerations. Independent third-party rating agencies assess insurers’ capacity to meet their financial obligations, offering an objective perspective on their solvency. Major agencies include A.M. Best, S&P Global Ratings, Moody’s Investor Service, and Fitch Ratings.
These agencies evaluate various factors, such as an insurer’s balance sheet strength, operating performance, business profile, and enterprise risk management. A high financial strength rating indicates a company’s robust ability to pay claims and fulfill its contractual commitments to policyholders, even under challenging economic conditions. For instance, A.M. Best ratings range from A++ (Superior) to F (In Liquidation), with higher letter grades signifying stronger financial health. S&P Global Ratings uses a scale from AAA (extremely strong) to D (default), with AAA being the highest. Similarly, Moody’s uses a letter grade scale from Aaa (Exceptional) to C (Lowest), with modifiers indicating ranking within a category.
Consumers can typically find these ratings on the respective rating agencies’ websites. While most online reviews feature a company’s financial strength ratings, it is important to understand that these ratings do not guarantee future performance but reflect a company’s historical and current financial condition. Consulting these independent ratings provides valuable insight into an insurer’s reliability and long-term viability.