By Brazil Stock Guide – Brazil’s private health operator market added 85,900 members in June, despite a round of annual premium adjustments that typically leads to higher cancellation rates and increased movement between plans during the second quarter, according to data from the National Supplementary Health Agency, or ANS.
The market ended the month with 53.15 million medical-plan enrollments and 36.71 million dental-only enrollments. The regulator cautions that these figures represent plan registrations rather than unique individuals, as the same person may be covered by more than one policy.
Insurers recorded 1.245 million new enrollments and 1.159 million cancellations in June, resulting in a monthly turnover rate of 2.19%. These movements include new subscriptions, portfolio transfers and voluntary plan changes, as well as the termination of group contracts, members leaving the private health insurance system and deaths.
Over the past 12 months, medical plans registered 15.89 million new enrollments and 15.13 million cancellations. That produced a net increase of approximately 759,000 memberships and a turnover rate of 28.89%.
The second quarter is an important period in the industry’s annual premium-adjustment cycle. For individual and family plans, increases may be applied on the anniversary of each policy within the period authorized by the ANS. Group and employer-sponsored plans, which account for most of the market, are also adjusted around contract anniversaries, potentially prompting renegotiations, migrations and cancellations.
According to BTG Pactual’s analysis of ANS data, Amil recorded the strongest growth in June, adding 36,200 members. São Paulo accounted for 21,100 of those additions, followed by Rio de Janeiro with 9,600.
Bradesco Saúde ranked second, with 25,700 net additions, including 11,300 in São Paulo and 4,200 in Minas Gerais.
Porto Saúde added 13,100 members during the month, while SulAmérica and Unimed Seguros each gained about 8,000. In percentage terms, Porto recorded the strongest monthly expansion among the major insurers, growing 1.6%.
Hapvida lost 12,600 members in June, following declines of 2,800 in May and 38,200 in April. Although the company has yet to stabilize its membership base, data from the past two months point to a significant slowdown in losses following the initial impact of the premium-adjustment cycle.
SulAmérica’s figures require an important distinction. When administrative-services-only contracts, known locally as ASO contracts, are included, the insurer lost 23,400 members during the quarter. Excluding those contracts, however, SulAmérica gained approximately 38,000 members, indicating a more favorable performance in its core health insurance portfolio.
Overall, Brazil’s private health insurance market added 241,000 members in the second quarter and 227,000 during the first half of the year. Growth was concentrated among Bradesco Saúde, Amil, Porto Saúde and Unimed Seguros.
The ANS cautions that the data remain subject to retroactive revisions as insurers update their membership information each month.
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