Here's 6 factors driving the 2021-22 MA marketplace:
OPPORTUNITY KNOCKS With 80% of Original Medicare beneficiaries describing themselves as lacking knowledge in Medicare Advantage plans (e.g., can’t switch, more expensive, no additional benefits) there’s a clear opportunity to convert to MA. Medicare Advantage enrollment will hit 50% of all Medicare enrollees by 2025*, eventually penetration could be 70%. [GoHealth, CSG Actuarial]
PRODUCT MATTERS Plans with a standout MA product mix* with attractive benefit design such as $0 premium PPOs or a value-driven supplemental benefit mix such as strong OTC, vision, dental and wellness will see a lift in response rates and create opportunities to move people, even those with switching reluctance. [KFF]
DIGITAL SENIORS An accelerated wave of tech-literacy will continue to change the Medicare shopping and decision-making process, particularly for age-in market. There was a 13% increase in ‘Medicare Advantage’ search during the most recent AEP. [Google]
COVID IMPACT During 2020 nearly 48% of Americans skipped or delayed getting some type of medical care due to the pandemic, especially preventive care visits. Getting MA members back-on-track with their preventive health is essential to maintaining and bolstering STARS ratings. [KFF, AMA]
NEW COMPETITORS #1 A cadre on new market entrants – OakStreet, Bright, Alignment, Oscar, Devoted – are expanding their presence in local markets and effectively positioning themselves as challenger brands (e.g., InsurTech, Payvider, HlthTech) in the MA market.
NEW COMPETITORS #2 Electronic Marketing Organizations (EMOs) such as eHealth, GoHealth, Assurance, SelectQuote, and HealthIQ are aggressively generating leads through DRTV and online optimization, resulting in strong upfront sales but all-too-frequently, rapid disenrollment and poor retention. On average, online broker plan selection tools include less than half of Medicare Advantage plans in a market. [The Commonwealth Fund]
* MA Plans & Benefits
In 2021 the average Medicare beneficiary has access to 33 Medicare Advantage plans.
- 3,550 MA plans nationwide
- 89% of MA plans include PDP
- 96% of beneficiaries can access MAPD with no monthly premium.
Extra or supplemental benefits not offered by ‘Original’ Medicare continue to strengthen:
- 68% of MA plans include Fitness, Dental, Vision & Hearing
- 98% of MA plans offer telehealth
- 75% offer over the counter “OTC”
- 55% offer a meal benefit such as delivery or nutrition education
- 36% offer transportation services
SOURCE: Kaiser Family Foundation. https://www.kff.org/medicare/issue-brief/medicareadvantage-2021-spotlight-first-look/
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