Marketing to Individuals Turning 65 or Eligible for Medicareignite.humana.com/.../2018/04/...Whitepaper_Final.pdf · Two thirds of age-ins considering Medicare have started shopping

What Moves Today’s Age-insMarketing to Individuals Turning 65 or Eligible for Medicare

#StartwithHealthy For Agent use only. Confidential and proprietary information, do not disseminate.

Medicare Eligibles—Abundant, Affluent, Tech Savvy1 Those turning 65 and aging in to Medicare make up one of the largest sectors of consumers and, therefore, have captured the attention of marketers1

As more than 75 million people enter retirement over the next decade, their spending power and buying habits will evolve to match a new post-career lifestyle.2

Marketers once believed that people 64 and over became resistant to change over time. Research shows that to be wrong. In fact, consumer behavior varies based on marketing, advertising and sales practices.3

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While this segment of consumers accounts for 40% of the market share,

they control about 70% of all disposable income in the U.S.1

For Agent use only. Confidential and proprietary information, do not disseminate.

66 Is the New 65Defining the optimum age of prospects

Approximately 40% of people turning 65 are expected to delay enrolling in Medicare. This opens up the possibility of a wider target demographic — one that’s aged 64 to 66.4

Two thirds of age-ins considering Medicare have started shopping by one month prior to age 65. The surging number of age-ins is expected to peak in 2025, providing many years of increased opportunities with this lucrative demographic.5

Every day,

10,000people become

eligible for Medicare6

3

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1. Source of Medicare Eligibles – U.S. Population Age 65 The 65-year old population is expected to peak to 4.27M in 2025 from 3.59M in 2017. Approx. 60% of the 65-year olds enroll in Medicare* at 65, another 17%-20% age-in as disabled. Approx. 800K-900K will postpone enrollment (19%-23%) every year.^ This calls for sustained Newly Eligible strategy beyond age 65.

Source: U.S. Census Bureau, Denom Files

2017 Medicare Factbook

7% 20% 17% 17%

61%

62% 62% 60%

32% 19% 22% 23%

3.57

3.38 3.39

3.45

3.25

3.30

3.35

3.40

3.45

3.50

3.55

3.60

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015

Mill

ion

s

Disabled Part B New Part B Part A Census Estimate*

595 609 629 650 673

2,118 2,168 2,239 2,312

2,395

794 813 839 867 898

2016 2017 2018 2019 2020

Estimate of 65-year Olds by Enrollment in Medicare, 2016-2020 (in Thousands)

Disabled Part B New Part B Part A

Coverage of 65-year Olds, 2012-15

Population of 65-year Olds, 2012-20

3.57 3.38 3.39 3.45 3.51 3.59 3.71 3.83 3.97 3.98 4.11 4.13 4.14 4.27

0.000.501.001.502.002.503.003.504.004.50

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Mill

ion

s

*Enroll in Medicare: Receiving Part B benefits ^Annual rate of enrollment of 66+ into Part B matches the no. of 65-year olds not enrolling in Part B, after accounting for morality rates.

Population of 65-year-olds 2012–20255


What They’re Looking for in a Plan Age-ins considering Medicare value the affordability and convenience of bundling medical and drug coverage4

Unlike their parents, who wanted to relax during retirement, today’s age-ins want to get out and do all the things they’ve always dreamed of doing. They’re more active and health-conscious than their own parents were, and medical technology makes it possible for them to live healthier and longer.1

This indicates that they will likely need insurance for a longer period of time and will seek out plans that suit their needs.1

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Affordable costs for doctor visits and prescriptions

Medical and drug coverage combined into one plan

The limit to out-of-pocket costs

Premiums are affordable

Being able to keep my preferred doctor

Extra coverage like dental, vision or hearing

Having the option of a $0 monthly plan

Top Reasons for Choosing MA4


How They Shop and BuyBaby boomers are more tech savvy than you might think1

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Age-ins remember the introduction of the first black-and-white and color televisions. They have adapted to technology over recent decades and, while they use it in different ways than millennials do, they spend as much time online as they do watching television.1

This demographic is less subject to peer influence than younger consumers and tends toward greater practicality in buying decisions.3 Old-school advertising methods with everything spelled out tend to be more effective than a minimalist messaging strategy.2

Technology Usage by Age-ins1

92%

95%

96%

Shop online

Use email

Use search engines


What Moves Them to DecideWhen marketing to any demographic, it’s important to understand who they are, where they come from and where they hope to be in the future

Age-ins want uncomplicated facts when considering a purchase. Years of buying experience have taught them what information they need to make an intelligent decision.3

First impressions are more likely to be permanent among this age group than with younger consumers. Marketers can gain a loyal customer base by starting off with the right message and following through with exemplary service.3

Make it Easy on the EyesDeteriorating eyesight is a common effect of aging, so the size and color of text in marketing materials are key to their effectiveness. Disclaimer copy, which is critical to choosing the right plan, must be legible.1

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BESURECONSUMERSCAN EASILY READ Y O U R M A R K E T I N G M A T E R I A L S


Be Prepared to Put in the Time This demographic does not take decision-making lightly2

Baby boomers view each purchase as a commitment. They need to build trust and spend time making purchase decisions. As they may be on fixed budgets, retirees also need to avoid spending beyond their limits.2

This presents a unique opportunity for sales teams to develop sincere relationships with customers. The age-in customer likely has the time to pick up the phone, listen without a sense of urgency and really absorb the value of the product.2

They’re not in a hurry and often ignore time-urgency strategies in marketing. Generally, “time is NOT of the essence” is a common attitude, especially among those who have retired.3

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While a typical sales process may take

one or two calls to close, it takes at least double

the amount of time when dealing with age-ins.2


T A

“ Great things are not accomplished by those who yield to trends and fads and popular opinion.”— Jack Kerouac

1 Karina Tama-Rutigliano, “Five Things You Need To Know About Marketing To Baby Boomers,” (2017, September 26), https://www.forbes.com/sites/forbescommunicationscouncil/2017/09/26/five-things-you-need-to-know-about-marketing-to-baby-boomers/#7fcfefaf4e55

2Geoff Gross, “5 Ways to Effectively Market to Baby Boomers,” (2016, June 1), www.entrepreneur.com/article/274727 3 Jim Gilmartin, “What We’ve Learned About Marketing To Baby Boomers,” (2017, January 3), www.mediapost.com/publications/

article/292074 4 Deft Research, 2017 Medicare Age-in Study 5 U.S. Census Bureau, Press Release Number: CB17-100, (2017, June 22)

For Agent use only. Confidential and proprietary information, do not disseminate.GHHK6EBEN

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Marketing to Individuals Turning 65 or Eligible for Medicareignite.humana.com/.../2018/04/...Whitepaper_Final.pdf · Two thirds of age-ins considering Medicare have started shopping