Medigap Market Analysis

All figures use 2019 NAIC Medicare Supplement Data

Exhibit 1 – Medigap Market by Insurer 2019

According to nationally aggregated 2019 NAIC Data the Medigap marketplace accounts for about 20% of enrollments (approximately 13.9 million) by the total Medicare beneficiary population (approximately 67.7 million). BCBS includes both Anthem and HCSC in consolidated total.* UnitedHealthcare dominates the marketplace, controlling nearly a third of the market, nearly equal to the next six of the top ten Medigap sellers combined. The 2019 NAIC data further reveals that only UnitedHealthcare and BCBS issued more than 1 million Medigap plans, though UnitedHealthcare still issued about 2 million more than BCBS. The other top 8 insurers by Medigap enrollment counts averaged about 350,000. No other seller controlled more than 5% of the market. The remaining 220 Medigap sellers enrolled less than 200,000 beneficiaries. Total enrollments by ‘All Others’ accounted for just slightly less of the total Medigap enrollment pool than UnitedHealthcare.

*BCBS includes both Anthem and HCSC in consolidated total.

(Click image to view larger)

Exhibit 2 – Top Ten States by Medigap Market Share

According to 2019 NAIC data, the top ten states in Medigap market share all had significantly higher ratios of Medigap enrollments compared to the national average of 20%. In Wyoming, 73% of the Medicare Eligible population enrolled in a Medigap plan, by far the most in the nation. This illustrates how some rural states with significantly lower populations may not have access to as many alternatives (such as Medicare Advantage plans) as other markets. In fact, amongst the top ten states by Medigap market share, only Illinois has more than a million eligible beneficiaries statewide. Also, amongst the top ten states by market share, only Illinois had more than 500,000 Medigap enrollments. Nationally, only 6 states had at least 1 in 3 people eligible for Medicare enroll in a Medigap plan.

(Click image to view larger)

Exhibit 3 – Top Ten States by Medigap Enrollment

The top ten States by Medigap enrollment had an average of 21% their eligibles population choosing Medigap plans. While all states had over 400,000 Medigap enrollments in 2019, only Florida, Texas, and Illinois each had over 750,000 Medigap enrollments – a figure larger than the eligibles population of 20 other states. However, the Medigap market share of total eligible beneficiaries Florida, Texas, California and New York were all below the national average. Only Hawaii had a smaller Medigap market share (4%) than California and New York.

To see more about Medigap in your state, utilize our Healthcare Providers Medicare Supplement Tool here.

(Click image to view larger)

Medicare Supplement tool

View Medicare Supplement Enrollment by State

View report

Medicare Advantage Penetration tool

View your county’s Medicare Advantage Penetration Report

View report