AHIP report shows rise in Medicare Supplement enrollment for fee-for-service Medicare enrollees

The popularity of Medicare Supplement plans continues to rise, with a new report from AHIP showing that 41.4% of fee-for-service Medicare enrollees chose a Medicare Supplement plan in 2022, marking the fifth consecutive year of growth.

The report highlights the demographics of those who enroll in Medicare Supplement plans, with more than half of fee-for-service Medicare enrollees without additional coverage opting for a Medicare Supplement plan in 2021. This choice seems to have financial benefits, as enrollees with Medicare Supplement coverage were three times less likely to have difficulty paying medical bills compared to those without such coverage.

The majority of Medicare Supplement policyholders are women, with a significant percentage being 75 years old or older and having lower incomes. These plans, also known as Medigap plans, provide private health insurance coverage to help seniors pay for costs not covered by traditional Medicare.

Overall, Medicare Supplement enrollees value their coverage, with 93% expressing satisfaction and 80% being “very” or “extremely” satisfied. The most popular plans in 2022 were Plan F and Plan G, with 39% and 35% of all Medicare Supplement enrollees, respectively.

While national Medicare Supplement enrollment fell by 1.9% in 2022, the report shows that these plans are still a popular choice among fee-for-service Medicare enrollees. With ongoing changes to benefit designs over the years, Medicare Supplement plans continue to provide seniors with financial security and peace of mind when it comes to healthcare expenses.