Medicare Supplement Loss Ratios down 8% in 2020

Written By Telos Actuarial

Telos Actuarial has analyzed client company experience along with industry experience and is reporting that the medical loss ratio for the Medicare Supplement market was down 8% in calendar year 2020.

The overall loss ratio for the entire Medicare Supplement market* went from 80% in 2019 to 72% in 2020.  The lower loss ratio was due to the reduction in healthcare utilization during the early COVID-19 lockdowns.

The majority of the reduction happened during March, April and May of 2020 as indicated by client company experience.

Telos Actuarial estimates that:

  • the March and May 2020 Loss Ratio was 80 – 85% of what it would have been absent the COVID-19 pandemic

  • The April 2020 Loss Ratio was 55 – 65% of what it would have been absent the COVID-19 pandemic

Source data: Telos Actuarial, NAIC

Telos Actuarial
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