Seniors who purchase Medicare Supplement (Medigap) coverage appear to be satisfied with their plan choice according to a study just conducted by the American Association for Medicare Supplement Insurance (AAMSI).

“Medigap persistency is a measure of plan satisfaction,” says Jesse Slome, director of the organization. AAMSI surveyed independent Medicare insurance agents who have been selling Medigap plans for 5 years or longer.

The several hundred agents participating in the study shared that 53% of their Medigap policies remained on the books for 9 years or longer. Some 41% had a persistency of between 5 and 7 years.

“There’s so much attention on Medicare Advantage and it could seem that seniors are abandoning their Medigap coverage,” Slome shares. “This is clearly not the case.” There are currently 14 million Americans with Medigap coverage according to AAMSI. The number is expected to grow to 18 million by 2030.

For agents the persistency data is a powerful reason to focus on selling Medigap plans. “When a policy remains on the books year after year, you are building a book of business and renewal income,” Slome notes. “Each Medigap sale can yield commission income for 5 or more years.”

“Medigap plan participants dropped their coverage for two primary reasons, Slome reports. Some 41% of those switching converted to a Medicare Advantage plan. About the same percentage (42%) switched to a lower cost Medigap plan.

The agents participating in the survey remain actively in contact with their Medigap clientele. Half (50%) review plans annually with their current clients. A fifth (20%) only speak with clients who reach out to them.

Medigap agents indicate that the television ad campaigns featuring celebrity spokespeople promoting MA plans have prompted calls from current Medigap clients. Over a quarter of the agents (28%) said that more than 20% of their clients have called them as a result of seeing ads.

Access the full Medigap persistency study data on the Association’s website at

Established in 1998, the American Association for Medicare Supplement Insurance advocates for the importance of consumer awareness and supports insurance and financial professionals who market Medicare solutions. Visit the organization’s website at for more information.

American Association for Medicare Supplement Insurance

Jesse R. Slome




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