Medigap Policyholders Forecast (2026)
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Medigap Policyholders Forecast (2026)
Medigap Insurance Market Is Projected to Exceed 17 Million Policyholders by 2032
Medicare Policyholders Forecast issued on March 20, 2026.
Current projections from the American Association for Medicare Supplement Insurance indicate the number of Americans with Medigap insurance policies will exceed 17 million by 2032.
“Medigap or Medicare Supplement insurance remains highly attractive to millions of Medicare-eligible seniors.” – Jesse Slome, Founder of the American Association for Medicare Supplement Insurance (AAMSI)
AAMSI examined data from industry reports and the Centers for Medicare & Medicaid Services (CMS) to better understand the anticipated rate of Medigap market growth over the coming decade.
CMS is a federal agency that administers Medicare and Medicaid programs, which together provide coverage to over 140 million Americans.¹
Crunching the Medigap Numbers
AAMSI projects that Medigap enrollment will grow from approximately 14.5 million policyholders in 2024 to over 17 million by 2032.
Take a longer view of the Medigap projection and you’ll find growth will continue through the early 2030s.
This increase is significant, rising from approximately 14.5 million Medigap enrollees in 2024 and representing a gain of nearly 3 million members in less than a decade.
According to Nova One Advisor, the U.S. Medigap market was valued at approximately $30.55 billion in 2025 and is projected to reach $50.33 billion by 2035, reflecting a compound annual growth rate of about 5.1%.²
Medigap is no Longer in the Shadows
The ongoing increase in Medigap policies has surprised some as the media tends to make Medicare and Medicare Advantage (MA) the focal points of narratives and discourse. As of November 2025, Medicare Advantage enrollment slightly exceeds Original Medicare (approximately 35.6 million vs. 34.1 million beneficiaries), underscoring the competitive landscape in which Medigap operates.¹
“With all the focus on Medicare Advantage (MA) market growth and the various MA controversies, Medigap is often overlooked.” – Slome
Seniors who take the time to understand Medigap agree it has merit.
“Medigap continues to provide significant value to seniors.” – Slome
Why Medigap is on the Rise
The growth in Medigap enrollment can be explained by both demographic and coverage-related factors.
The rise in Medigap enrollment is closely tied to both the growth of the Medicare population and the broader aging trend in the United States. As of November 2025, CMS reports nearly 70 million Medicare beneficiaries nationwide, including more than 34 million enrolled in Original Medicare.¹
At the same time, U.S. Census Bureau projections show that by 2030 all baby boomers will be age 65 or older, contributing to a historic demographic shift. Older Americans will make up roughly one in five residents, reaching more than 70 million by the end of the decade.³
In terms of quality, senior citizens are looking to Medigap for more comprehensive and predictable coverage. Those familiar with this supplemental form of insurance insist it provides the reliable benefits aging seniors need.
Medigap Fills the Void of Senior Healthcare
The influx of patients into Medigap makes even more sense when the rising costs of health care are considered. The bottom line is Medicare coverage does not pay for all medical care and equipment.
With over 34 million Americans in Original Medicare—where there is no cap on out-of-pocket costs—supplemental coverage plays a critical role in financial protection.¹
As an example, Parts A and B of Original Medicare do not have a maximum limit on patients’ out-of-pocket spending.
As such, it is possible for senior citizens enrolled in Original Medicare Parts A and B to become financially strained. Financial pressure can increase even more after a complex surgical procedure, hospitalization, or a high frequency of physician visits.
More seniors are becoming aware of the value of Medigap plans and how the coverage decreases the financial uncertainty of out-of-pocket costs.
Medigap membership will continue to grow over the next decade due to its predictable costs and minimal administrative requirements.
Sources:
¹ CMS Medicare Monthly Enrollment Report
² Nova One Advisor – U.S. Medicare Supplement Market Report
https://www.novaoneadvisor.com/report/us-medicare-supplement-health-insurance-market
³ U.S. Census Bureau Population Projections
https://www.census.gov/newsroom/press-releases/2018/cb18-41-population-projections.html
