CSG Consulting 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.

MS LRs 2020

CSG Consulting 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

*Sources: CSG Actuarial, NAIC