Analysis Paralysis – 57% of Those on Medicare Do Not Review or Compare Their Coverage Options Annually
Zack Lewis : September 28 2020
57% of Medicare beneficiaries do not review or compare coverage options annually.
– Kaiser Family Foundation
The Kaiser Family Foundation (KFF) published a report in October this year for their findings on how Medicare beneficiaries make decisions on their coverage:
- Two-thirds of Medicare beneficiaries age 85 and older (66%) reported they do not review coverage options annually compared to 56% of beneficiaries age 65 to 74. As many as 33% of people 85 and older say they never review their coverage options.
- A larger share of Medicare beneficiaries with incomes less than $10,000 a year said they do not review coverage options annually than compared to people with incomes of more than $40,000 (63% versus 56%).
- Nearly two-thirds of Medicare beneficiaries with less than a high school education (63%) reported not reviewing coverage options annually compared to 53% of individuals with a bachelor’s degree or higher. One-third (33%) of people with Medicare with less than a high school degree say they never review their options.
- A larger share of beneficiaries in fair or poor health reported they do not review coverage options annually compared to individuals in good, very good, or excellent health (61% versus 56%).
- In 2018, 61% of beneficiaries in traditional Medicare said they do not review coverage options annually; among Medicare Advantage enrollees, the share was lower (51%).
But here’s the kicker – KFF reports that one in three Medicare beneficiaries report difficulty understanding the program or comparing coverage options, and most do not use Medicare’s official information resources:
- While most people on Medicare say it was very easy (23%) or somewhat easy (46%) to understand the Medicare program, about one in three people with Medicare overall (30%) said the Medicare program was somewhat difficult (23%) or very difficult (7%) to understand, with larger shares for specific subgroups.
Over the next 15 years, Medicare is projected to have over 80 million beneficiaries.
What does this mean for Medicare Agency Owners? There’s a huge opportunity to capture market share by serving as an educational resource to help customers make decisions AND reconnect periodically for consultations to review their coverage. The best part is the resources to position yourself accordingly are readily accessible and inexpensive:
- Create informational videos on YouTube using your webcam and microphone;
- Write blogs and articles you can share with your database that provides easy-to-read information regarding coverage changes and other relevant information;
- Host Zoom webinars monthly on critical topics those coming eligible should be aware of and invite them;
- Export PDP and policy options as comparison tables that can be emailed after speaking with them (add your branding and contact information for good measure);
- Create automated DRIP campaigns to customers based on their coverage to offer free consultations to review their policies – this is a great way to get in front of someone before they go somewhere else.
The experience that your customer has with your organization is your product.
Becoming a trusted source of information to the market where customers overwhelmingly feel like making an informed decision is impossible, you can position yourself to attract new business and increase retention of your current clients dramatically.
In between this informational gap lies opportunity.
For more valuable insights about Medicare technology, check out our blog at https://stackboost.io/blog/
P.S. I started a LinkedIn group called “Success-With-Tech for Health Insurance Agency Owners” to serve as a resource for all things technology when managing your health insurance agency. If you have questions or are considering buying a tool to help increase sales and streamline operational efficiency, leverage the community of experts for feedback to help make the best decision.
The Best is Yet to Come…