Study Puts Senior Switchers in the Spotlight

This study is a continuation of our coverage of the dynamics operating within the senior market for health and drug coverage. The study captured meaningful samples of seniors obtaining health insurance through the individual market, through employer-sponsored retiree groups, and through Medicare/Medicaid dual eligible status.

The details and implications of the research will clarify your window on the senior health insurance world. It will help you add value by directing your firm into profitable areas. With this research you can make the case for various product developments and pricing actions, your marketing and sales models will bear the weight of solid evidence, and you can develop strategies based on the measure market potential of retirees, duals, and individuals.

• The research comes from surveys of over 2,000 seniors completed in February 2008.
• The study covers switching behavior of retirees, duals, and individuals in three complete chapters.
• The research finds that in the dual eligible, Med Supp, and MA markets, about 40-55% of seniors shopped for medical or drug coverage during the fall enrollment period. A lesser but significant percent switched.
• Switch triggers involve benefit design, extra benefits, price, and elements of brand equity such as trustworthiness.

The research also has served as the basis for local market and customized studies, and could again for your health plan or senior organization.

Top Line Result

The figure below shows the switching and shopping behavior of seniors with Med Supp or enrolled in a Medicare Advantage plans.

This study shows high proportions of seniors in each of the markets considering and shopping for health insurance. This in itself implies that the market share of any health plan cannot be taken for granted in the coming years. Health plans wishing to exploit the switching triggers of individuals, duals, or retirees may use this report to prioritize and target their activity.

For health plans making decisions about pricing, attracting seniors with extra benefits, priority marketing channels, and market potential, this report supplies a set of action standards that reduce uncertainty and financial risk.

For a sampler of this study or to discuss the uses of this research and how custom research works, please call 612/436-8318 or e-mail rhamer@deftresearch.com.