A growing opportunity
Medicare enrollment is expected to grow to 77 million by 2027.10 Accenture analysis shows that during this period, the addressable market for MA and MedSupp switchers will grow from 4.3 million in 2017 to 8.4 million in 2027 (assuming today’s 13 percent switching rate remains consistent).
While growth in overall Medicare enrollment will increase the number of beneficiaries eligible for switching each year, there is another important contributing factor that will drive the switcher segment to be even higher than the 8.4 million members currently estimated: voluntary switching.
How to win the race
To win in this competitive market, health plans must:
- Proactively identify and retain those at risk to switch. Predictive analytics that uses a 360-degree view of the member, inclusive of behavioral and call center data, can help identify at-risk-to-switch Medicare members.
- Simplify the shopping and renewal experience. Health plans must simplify shopping, enrollment and renewal by following service design principles and supplementing physical interaction points with digital front-end experiences.
- Reach for the STARs. Deepening collaboration with providers and incentivizing providers to collect member-level data is critically important to drive meaningful improvement to a plan’s STAR rating.
- Partner strategically. To boost acquisition of Medicare members, health plans must strategically partner with vendors that demonstrate meaningful evidence of three key attributes: lead conversion efficiency, ability to transfer leads to alternate sales channels and higher levels of compliance with regulatory requirements.
- Deliver consumer value. To deliver a compelling value proposition to seniors, health plans must proactively offer differentiation in the form of enhanced support for complex conditions, a higher quality network, integrated physician services, in-home care and other value-added services that enable improved clinical and financial outcomes.
1 Henry J Kaiser Family Foundation, Medicare Advantage 2017 Spotlight: Enrollment Market Update
2 Healthcare Leadership Council, “Aetna CEO: New Math for Medicare”
3 Congressional Budget Office, The Budget and Economic Outlook: 2017 to 2027
4 Henry J Kaiser Family Foundation, Medicare Advantage 2017 Spotlight: Enrollment Market Update
5 Mark Farrah Associates, Year-over-Year Growth for Medicare Supplement, April 27, 2017
6 LEK Consulting, “Why Medicare Advantage Is Marching Toward 70% Penetration”
7 Accenture 2018 Health Insurance Shopping and Enrollment Experience Survey
8 Accenture 2018 Health Insurance Shopping and Enrollment Experience Survey
9 Health Affairs, “Substantial Physician Turnover and Beneficiary ‘Churn’ in a Large Medicare Pioneer ACO,” April 2017, 36(4):640–48.)
10 Congressional Budget Office, Medicare – Congressional Budget Office’s January 2017 Baseline, January 24, 2017