U.S. Medicare Supplement Health Insurance Market Share Analysis Report, 2023-2032
The U.S. medicare supplement health insurance market size accounted for USD 27.90 billion in 2022 and is estimated to achieve a market size of USD 45.88 billion by 2032 growing at a CAGR of 5.1% from 2023 to 2032.
Key Takeaways:
U.S. Medicare Supplement Health Insurance Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 29.32 Billion |
| Market Size by 2032 | USD 45.88 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 5.1% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Demographic, sales channel |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Cigna Health & Life Insurance Company; Anthem Blue Cross; United Healthcare Insurance Company; Mutual of Omaha; Humana; State Farm Mutual Automobile Insurance Company; National Health Insurance Company; United American Insurance Company; Washington National Insurance Company; Everence Association, Inc. |
High healthcare costs and benefits offered by this plan are the key factors driving the demand for medicare supplement health insurance. Many individuals in the U.S. purchase medicare supplement health insurance to control this high spending on healthcare.
The upside of the plan is that it makes budgeting and predicting out-of-pocket expenses easier. Because of its role in bridging the initial Medicare coverage gap, the medicare supplement health insurance is also known as medigap. It aids in covering outstanding medical expenses, including co-payments, deductibles, and coinsurance. These benefits are offering lucrative growth opportunities for the medicare supplement health market in the country.
The main factor influencing the nation's medicare supplement health insurance carriers is the high expense of healthcare in the U.S. Healthcare in the country is very expensive due to a number of variables, including high, unregulated prescription drug costs and the highest salaries of healthcare providers when compared to other western nations. Moreover, administrative rules for billing and coding add to an individual's expenses, making the entire process of obtaining healthcare services expensive and medical debt quite widespread in the nation.
For instance, according to a KFF article, 42% of Americans report having debt from medical or dental bills in 2022. This debt includes money owed to credit cards, collections companies, family and friends, banks, and other lenders to cover the cost of their medical care.
The COVID-19 pandemic introduced various challenges across different domains, especially in public health care. However, despite these intense challenges the number of medicare enrollees has kept increasing even during the pandemic. While medicare earned significant revenues during the pandemic as well. The medigap experienced a drop in sales as it is a health insurance plan that is provided by private insurers. Thus, factors like the rise in unemployment due to restricted economical activities and lack of preparedness to deal with the pandemic by major private players.
However, during the second half of the pandemic, many players started focusing on how to improve their online channels which helped in gaining many customers. Moreover, different strategies accepted by healthcare service providers such as increasing usage of telehealth services and increasing awareness regarding insurance also had a positive impact on the sales of the medigap supplement health insurance.
Demographic Insights
Individuals aged 65 or older dominated the U.S. medicare supplement health insurance market in 2022 with a revenue share of more than 97% owing to a higher number of individuals in this category opting for this policy. In addition, only people enrolled under medicare can avail the medicare supplement health insurance plans. As per the government guidelines, only individuals aged 65 or older and individuals aged under 65 with an eligible disability can be enrolled under medicare.
Thus, as the number of individuals that fall under the aged 65 or above category is higher, the segment is anticipated to dominate the market throughout the forecast period as well. According to the U.S. Department of Health and Human Services, out of the total beneficiaries enrolled in 2019, 86.2% of them were individuals aged 65 or older.
However, the rising disability cases among the younger population in the U.S. is leading to a significant growth of individuals aged under 65 with an eligible disability segment. For instance, according to the American Community Survey estimates, in 2019, more than 1.3 million U.S. young people aged 16 to 20 had a disability.
Sales Channel Insights
In 2022, the agents segment dominated the market with 48% of the revenue share. This is owing to the highest sales achieved through this sales channel by the virtue of it being the oldest channel of insurance sales. In addition, the physical presence of the person gives added credibility and ease of communication making it more feasible for customers to purchase insurance policies via this sales channel.
Moreover, medicare supplement health insurance is mainly for senior citizens and studies suggest that a majority of them are not comfortable with exclusively online insurance and health tools. For instance, according to a research article, published by Wilmington plc publication in 2021, only 40% of the senior population is highly comfortable with shopping for health coverage online.
On the other hand, the website segment is observing significant growth with a higher CAGR, due to the increasing number of people buying insurance policies via online channels post-COVID-19 pandemic. Increasing efforts by insurance providers to create well-informed websites which make the entire process of purchasing an insurance policy more convenient and reliable is also driving the growth of online sales channels. Although the sales revenue is not as high as agents, the rise in fraudulent actions through agents is creating growth opportunities for this segment.
Regional Insights
The South region accounted for the highest market share in 2022, owing to the highest number of individuals enrolled under medicare in this region. A similar trend is anticipated to be observed over the forecast period with the region maintaining its dominance. For instance, according to the U.S. Centers for Medicare & Medicaid Services, in 2020, the South region accounted for 23.4 million enrollees from a total of 61.40 million under the medicare scheme.
The West section is expected to witness maximum growth over the forecast period. This is due to the growing number of insurance providers in the region. California dominated the West region due to the growing personal health spending in the state. According to the U.S. Centers for Medicaid and Medicaid Services, in 2020, California spent the most on personal healthcare in 2020 ($410.9 billion), accounting for 12.2% of all personal healthcare spending in the country.
Key Companies & Market Share Insights
The major participants are concentrating on implementing a wide range of strategies, such as joint ventures and partnerships, the introduction of new products, and investments in regional insurance firms to increase their visibility and product availability.
Market participants are focusing on constantly broadening their customer network and reaching out to a larger number of patients through these established networks and offering great deals for their employees as well. For instance, in November 2022, an agreement between Aspirus Network Inc. and Anthem Blue Cross and Blue Shield was signed that guarantees, that all Anthem members will continue to have access to care from Aspirus Network providers and facilities while still being covered under their plan. Some prominent players in the U.S. medicare supplement health insurance market include:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Medicare Supplement Health Insurance market.
By Demographic
By Sales Channel
By Regional
Chapter 1. Methodology and Scope
1.1. Market Segmentation & Scope
1.1.1. Demographic
1.1.2. Sales Channel
1.1.3. Regional scope
1.1.4. Estimates and forecast timeline
1.2. Research Methodology
1.3. Information Procurement
1.3.1. Purchased database
1.3.2. Nova one advisor’s internal database
1.3.3. Secondary sources
1.3.4. Primary research
1.3.5. Details of primary research
1.3.5.1. Data for primary interviews in the U.S.
1.4. Information or Data Analysis
1.4.1. Data analysis models
1.5. Market Formulation & Validation
1.6. Model Details
1.6.1. Premium price
1.6.2. Country-wise market estimation using bottom-up approach
1.7. List of Secondary Sources
1.8. List of Primary Sources
1.9. Objectives
1.9.1. Objective 1
1.9.2. Objective 2
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.2.1. Demographic Outlook
2.2.2. Sales Channel Outlook
2.2.3. Regional Outlook
2.3. Competitive Insights
Chapter 3. U.S. Medicare Supplement Health Insurance Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent market outlook
3.1.2. Related/ancillary market outlook
3.2. Penetration & Growth Prospect Mapping
3.3. Industry Value Chain Analysis
3.3.1. Reimbursement framework
3.4. Market Dynamics
3.4.1. Market driver analysis
3.4.1.1. Increasing Sales Channel for Insurance
3.4.1.2. High Healthcare Costs
3.4.1.3. Benefits of Medigap insurance
3.4.2. Market restraint analysis
3.4.2.1. Lack of Awareness about the Medigap Insurance
3.5. U.S. Medicare Supplement Health Insurance Market Analysis Tools
3.5.1. Industry Analysis - Porter’s
3.5.1.1. Supplier power
3.5.1.2. Buyer power
3.5.1.3. Substitution threat
3.5.1.4. Threat of new entrant
3.5.1.5. Competitive rivalry
3.5.2. PESTEL Analysis
3.5.2.1. Political landscape
3.5.2.2. Technological landscape
3.5.2.3. Economic landscape
3.5.3. Major Deals & Strategic Alliances Analysis
3.5.4. Market Entry Strategies
Chapter 4. U.S. Medicare Supplement Health Insurance: Demographic Estimates & Trend Analysis
4.1. Definitions and Scope
4.1.1. Individuals Aged 65 or Older
4.1.2. Individuals Aged Under 65 with an Eligible Disability
4.2. Demographic Market Share, 2023 & 2032
4.3. Segment Dashboard
4.4. U.S. Medicare Supplement Health Insurance Market by Demographic Outlook
4.5. Market Demographic & Forecasts and Trend Analyses, 2020 to 2032 for the following
4.5.1. Individuals aged under 65 or older
4.5.1.1. Market estimates and forecast, 2020 - 2032
4.5.2. Individuals aged under 65 with an eligible disability
4.5.2.1. Market estimates and forecast, 2020 - 2032
Chapter 5. U.S. Medicare Supplement Health Insurance: Sales Channel Estimates & Trend Analysis
5.1. Definitions and Scope
5.1.1. Agents
5.1.2. Brokers
5.1.3. Website
5.1.4. Others
5.2. Sales Channel Market Share, 2023 & 2032
5.3. Segment Dashboard
5.4. U.S. Medicare Supplement Health Insurance Market by Sales Channel Outlook
5.5. Market Sales Channel & Forecasts and Trend Analyses, 2020 to 2032 for the following
5.5.1. Agents
5.5.1.1. Market estimates and forecast, 2020 - 2032
5.5.2. Brokers
5.5.2.1. Market estimates and forecast, 2020 - 2032
5.5.3. Website
5.5.3.1. Market estimates and forecast, 2020 - 2032
5.5.4. Others
5.5.4.1. Market estimates and forecast, 2020 - 2032
Chapter 6. U.S. Medicare Supplement Health Insurance Market: Regional Estimates & Trend Analysis
6.1. Regional market share analysis, 2023 & 2032
6.2. Regional Market Dashboard
6.3. U.S. Regional Market Snapshot
6.4. Regional Market Share and Leading Players, 2023
6.4.1. U.S.
6.5. Market Service, & Forecasts and Trend Analysis, 2020 to 2032:
6.6. U.S.
6.6.1. Northeast
6.6.1.1. Market estimates and forecast, 2020 - 2032
6.6.1.2. Connecticut
6.6.1.2.1. Connecticut Market estimates and forecast, by product, 2020 - 2032
6.6.1.3. Massachusetts
6.6.1.3.1. Massachusetts Market estimates and forecast, by product, 2020 - 2032
6.6.1.4. Pennsylvania
6.6.1.4.1. Pennsylvania Market estimates and forecast, by product, 2020 - 2032
6.6.1.5. New Jersey
6.6.1.5.1. New Jersey Market estimates and forecast, by product, 2020 - 2032
6.6.1.6. New York
6.6.1.6.1. New York Market estimates and forecast, by product, 2020 - 2032
6.6.1.7. Others (Maine, New Hampshire, Rhode Island, Vermont)
6.6.1.7.1. Others Market estimates and forecast, by product, 2020 - 2032
6.6.2. Midwest
6.6.2.1. Market estimates and forecast, 2020 - 2032
6.6.2.2. Illinois
6.6.2.2.1. Illinois Market estimates and forecast, by product, 2020 - 2032
6.6.2.3. Indiana
6.6.2.3.1. Indiana Market estimates and forecast, by product, 2020 - 2032
6.6.2.4. Michigan
6.6.2.4.1. Michigan Market estimates and forecast, by product, 2020 - 2032
6.6.2.5. Ohio
6.6.2.5.1. Ohio Market estimates and forecast, by product, 2020 - 2032
6.6.2.6. Wisconsin
6.6.2.6.1. Wisconsin Market estimates and forecast, by product, 2020 - 2032
6.6.2.7. Iowa
6.6.2.7.1. Iowa Market estimates and forecast, by product, 2020 - 2032
6.6.2.8. Minnesota
6.6.2.8.1. Minnesota Market estimates and forecast, by product, 2020 - 2032
6.6.2.9. Missouri
6.6.2.9.1. Missouri Market estimates and forecast, by product, 2020 - 2032
6.6.2.10. Others (Kansas, Nebraska, North Dakota, South Dakota)
6.6.2.10.1. Others Market estimates and forecast, by product, 2020 - 2032
6.6.3. South
6.6.3.1. Market estimates and forecast, 2020 - 2032
6.6.3.2. Florida
6.6.3.2.1. Florida Market estimates and forecast, by product, 2020 - 2032
6.6.3.3. Georgia
6.6.3.3.1. Georgia Market estimates and forecast, by product, 2020 - 2032
6.6.3.4. Maryland
6.6.3.4.1. Maryland Market estimates and forecast, by product, 2020 - 2032
6.6.3.5. North Carolina
6.6.3.5.1. North Carolina Market estimates and forecast, by product, 2020 - 2032
6.6.3.6. South Carolina
6.6.3.6.1. South Carolina Market estimates and forecast, by product, 2020 - 2032
6.6.3.7. Virginia
6.6.3.7.1. Virginia Market estimates and forecast, by product, 2020 - 2032
6.6.3.8. Alabama
6.6.3.8.1. Alabama Market estimates and forecast, by product, 2020 - 2032
6.6.3.9. Kentucky
6.6.3.9.1. Kentucky Market estimates and forecast, by product, 2020 - 2032
6.6.3.10. Tennessee
6.6.3.10.1. Tennessee Market estimates and forecast, by product, 2020 - 2032
6.6.3.11. Louisiana
6.6.3.11.1. Louisiana Market estimates and forecast, by product, 2020 - 2032
6.6.3.12. Texas
6.6.3.12.1. Texas Market estimates and forecast, by product, 2020 - 2032
6.6.3.13. Others (Delaware, West Virginia, Mississippi, Arkansas, Oklahoma)
6.6.3.13.1. Others Market estimates and forecast, by product, 2020 - 2032
6.6.4. West
6.6.4.1. Market estimates and forecast, 2020 - 2032
6.6.4.2. Arizona
6.6.4.2.1. Arizona Market estimates and forecast, by product, 2020 - 2032
6.6.4.3. Colorado
6.6.4.3.1. Colorado Market estimates and forecast, by product, 2020 - 2032
6.6.4.4. Nevada
6.6.4.4.1. Nevada Market estimates and forecast, by product, 2020 - 2032
6.6.4.5. California
6.6.4.5.1. California Market estimates and forecast, by product, 2020 - 2032
6.6.4.6. Oregon
6.6.4.6.1. Oregon Market estimates and forecast, by product, 2020 - 2032
6.6.4.7. Washington
6.6.4.7.1. Washington Market estimates and forecast, by product, 2020 - 2032
6.6.4.8. Others (Idaho, Montana, New Mexico, Utah, Wyoming, Alaska, Hawaii)
6.6.4.8.1. Others Market estimates and forecast, by product, 2020 - 2032
Chapter 7. Competitive Landscape
7.1. Recent Developments & Impact Analysis, By Key Market Participants
7.2. Company/Competition Categorization
7.2.1. Innovators
7.2.2. Market Leaders
7.2.3. Emerging Players
7.3. Vendor Landscape
7.3.1. List of key distributors and channel partners
7.3.2. Key customers
7.3.3. Key company market share analysis, 2023
7.3.4. Cigna Health & Life Insurance Company
7.3.4.1. Company overview
7.3.4.2. Financial performance
7.3.4.3. Product benchmarking
7.3.4.4. Strategic initiatives
7.3.5. Anthem Blue Cross
7.3.5.1. Company overview
7.3.5.2. Financial performance
7.3.5.3. Product benchmarking
7.3.5.4. Strategic initiatives
7.3.6. United Healthcare Insurance Company
7.3.6.1. Company overview
7.3.6.2. Financial performance
7.3.6.3. Product benchmarking
7.3.6.4. Strategic initiatives
7.3.7. Mutual of Omaha
7.3.7.1. Company overview
7.3.7.2. Financial performance
7.3.7.3. Product benchmarking
7.3.7.4. Strategic initiatives
7.3.8. Humana
7.3.8.1. Company overview
7.3.8.2. Financial performance
7.3.8.3. Product benchmarking
7.3.8.4. Strategic initiatives
7.3.9. State Farm Mutual Automobile Insurance Company
7.3.9.1. Company overview
7.3.9.2. Financial performance
7.3.9.3. Product benchmarking
7.3.9.4. Strategic initiatives
7.3.10. National Health Insurance Company
7.3.10.1. Company overview
7.3.10.2. Financial performance
7.3.10.3. Product benchmarking
7.3.10.4. Strategic initiatives
7.3.11. United American Insurance Company
7.3.11.1. Company overview
7.3.11.2. Financial performance
7.3.11.3. Product benchmarking
7.3.11.4. Strategic initiatives
7.3.12. Washington National Insurance Company
7.3.12.1. Company overview
7.3.12.2. Financial performance
7.3.12.3. Product benchmarking
7.3.12.4. Strategic initiatives
7.3.13. Everence Association, Inc.
7.3.13.1. Company overview
7.3.13.2. Financial performance
7.3.13.3. Product benchmarking
7.3.13.4. Strategic initiatives
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