Supplementary Health Plans Market

Page 1

Supplementary Health Plans

Market



Brazilian Federation for Private Health Insurance and Plans FenaSaúde is an entity that represents twenty-three health plans and specialized health insurance companies, being one of the associative federations that compose the Brazilian Insurance Confederation – CNseg.

18

large groups

23

associated companies

9

specialized health insurers

10

medical groups

4

dental groups only

29

millions of beneficiaries


Insurance Market Premiuns by segments 17% 5%

41% 37%

General Insurance

Surety bonds

“The Supplementary Health plans and insurance participates with 41% of the Insurance Market Share”. Source: ANS/Susep/FenaSaúde - 2016

Life and Pension Coverage

Insurance Market

Supplementary Healthcare

Revenue in Reais (R$ Billions)

General Insurance

69,6

Surety bonds

21,1

Life and Pension Coverage

148,7

Supplementary Health Plans and Insurance

165,6

Total

405,0


FenaSaúde’s Associates data for March / 2017

14,4 %

Premiuns increase in 12 months

16,8

(R$) Billions in technical provisions

72 % 234 %

Growth in the number of medical plans beneficiaries in the last 10 years Growth in the number of dental-only plans beneficiaries in the last 10 years

70,4

(R$) Billions in premiuns

69,0

(R$) Billions in expenses | 19,5% growth

58,8

(R$) Billions in medical expenses | 15,9% growth

84,6 %

Medical Assistance claim rate


Regulatory framework of the sector The Supplementary Healthcare Sector in Brazil is regulated by Law n. 9,656/98, which established the main requirements to the sector. The Regulatory Framework established rigid parameters and rules for the Healthcare Operators in Brazil. Among the rules brought by legislation, the following ones stand out:

Readjustments Control | Individual plans Prohibition of unilateral rescission of contracts | Individual plans Imposition of maximum waiting periods Rigidty on assistance segmentation

Premiuns according to age brackets Prohibition of price readjustment over the age of 59 Forbidden the risk selection based on age and health criteria Rules for retired people and laid-off workers


The National Regulatory Health Agency Role The National Regulatory Agency for Private Health Insurance and Plans (ANS) is the Agency established by the Brazilian Government under the Ministry of Health that operates nationwide to regulate, standardize, control and inspect the private health insurance and plans sector in Brazil. It was established by Law 9,961 in 2000, which defines its spheres of competence. Its institutional purpose is to protect the public interest in terms of supplementary health insurance, regulating health operators in this sector - including their relationships with providers and consumers.


supplementary healthcare participation in the brazilian GDP

70 millions of brazilians enrollees in health insurance and health plans to medical and dental services

168,5 billions in expenses

137,2 billions in medical and dental assistance expenses

169,9 billions in revenue

84,3% The Supplementary Health Plans Market in Brazil 54 %

claim rate in medical assistance segment

The Brazilian market is among the biggest supplementary healthcare markets of the world.

of health expenditures in Brasil is private

Source of data: ANS and FenaSaĂşde / last 12 months ended in 1Q17

2,6 % is the


Operators in Activity with Beneficiaries according to Category Category

Numbers of Operators with beneficiaries

Self-insured Plans

160

Medical Cooperative

297

Nonprofit Health Operators

45

Medical Group

262

Health-specialized Insurer

9

Dental Cooperative

107

Dental Group

188

TOTAL

1.068 Source: ANS / Period: May / 2017

70 million beneficiaries | 80% collective plans and 20% individual plans

47,4

millions

healthcare plans beneficiaries

22,6

millions

healthcare plans beneficiaries of dental-only plans


Proportions of Beneficiaries by contract type Source: Situation Room /ANS / July/2017

Medical assistance

Dental-only

18,2%

19,5%

8,3% 13,6%

Affinity group

66,5%

73,3%

Employer-based group

Individual or family


Return to Society: the Supplementary Healthcare assistance performance The healthcare plans operators are responsible for the organization of the mutual system on which the functioning of the Supplementary Health Sector is based. It is this solidary scheme that allows people to access treatments and therapies, that only a few could afford on its own. Supplementary Health Plans improvies people’s life quality and contributes to the increase in the population life expectancy. Besides that, it stimulates the generation of new markets and jobs.


DATA FROM 2016

29,4% 1,5

of the eldery in Brazil has private healthcare plans

billion

of medical and dental procedures per year

273

million

of medical appointments per year

543

thousands

of childbirths per year

797

million

of lab tests per year

7,8

million

of hospitalizations per year

34

millions

of radiographic test per year


3,4 7,6%

millions

of jobs

78,4% or

of Brazil’s labour force Source: IESS - April/2017

311

thousand

Doctors working in the private sector

data from 2015’s Medical Demography

131

thousand

134

thousand

of outpatient clinics

of hospital beds

Source: CNES/MS/May/2017

Source: CNES/MS/May/2017


Mission Our mission is to contribute to the strengthening of the healthcare private market through the exchange of experiences and analysis of topics of common interest, and through the making of proposals for the growth and development of the market and our empowerment as an institutional representative of private healthcare plans operators.


FenaSaúde

Board of Directors The Federation is headed by Solange Beatriz Palheiro Mendes. The current board, elected in February 2016 for a 3-year term, is composed of 14 representatives from FenaSaúde’s associates: fenasaúde board of directors

VOCÊ SEMPRE B E M.

others members


www.fenasaude.org.br w w w.fe na s a ud e .o rg .b r

Version: October 2017

Find out more about FenaSaĂşde at


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