Insights & Behaviors to Target And Engage Medicare Age-In Consumers

© 2016 Merkle. All Rights Reserved. Confidential 2016 Age-in Study Deft Research, All Rights Reserved

Insights & Behaviors to TargetAnd Engage Medicare Age-In

Consumers


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Merkle has partnered with Deft Research, a leading research organization with deep experience in the Healthcare Insurance marketplace, to bring you today’s session – which will give you new insight into the Medicare Age-In population and the buying behaviors of the Medicare population.

In this webinar, we will focus on:

• Insights into the Medicare Age-In population. How they behave and what motivates this segment

• Understanding how a People-based marketing strategy can help you take advantage of these buying behaviors and motivations we have observed in the market

What to expect

Click here to watch the full on-demand webinar, Insights & Behaviors to Target And Engage Medicare Age-In Consumers.

http://bit.ly/2eoZ3Rm



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David MagriniSVP, Partner

Merkle Health

George DippelVP, Client Service

Deft Research

David is the Health Practice Lead for Merkle and an Industry veteran of over 20 years. He was Head of Consumer Marketing at Aetna for 5 years prior to joining Merkle in 2010.

George’s range of healthcare consumer research expertise spans Medicare Advantage, MedSupp, Small Group, ACA/off-exchange, Uninsured, PBM and Part D. Over the past five years, George has been part of over 100 health insurance consumer quantitative research projects at Deft Research.

Meet your hosts




© 2016 Merkle. All Rights Reserved. Confidential © 2016 Merkle. All Rights Reserved. Confidential 2016 Age-in Study Deft Research, All Rights Reserved

Medicare Advantage now makes up more than 30% of all participants*CMS estimates that in fiscal 2016, 17.3 million participants will join Medicare Advantage plans. That's more than 30% of Medicare participants, and when you add in those who enroll in other health plans beyond original Medicare, the number rises to nearly a third.

Baby Boomers continue to turn 65Approximately 3.1M people in 2.8M Households will become Medicare-eligible from October 2016 – September 2017**Every day about 10,000 Baby Boomers turn 65**According to AARP, 40% of Baby Boomers plan to “work until they drop”**

Content Consumption77% of online health seekers say they start their Search at Google, Yahoo or Bing**Direct Mail is still a workhorse for acquisition**

A brief look at the Medicare Landscape 6

* CMS **Merkle ***Pew Research




© 2016 Merkle. All Rights Reserved. Confidential 2016 Age-in Study Deft Research, All Rights Reserved April 28, 2016

Deft Research: Medicare Age-In Study

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2016 Age-In Study: Deft Research

© 2016 Merkle. All Rights Reserved. Confidential © 2016 Merkle. All Rights Reserved. Confidential 2016 Age-in Study Deft Research, All Rights Reserved

Age-in Study Overview

2,259

• 2,259 responses were obtained online nationally.

• Respondents were recruited jointly from SSI and Research Now.

METHOD

64+

• Ages 64+

o 1,450 Age-ins: 64 to 65+ three months, not in Medicare

o 153 Late-to-Medicare: 65 + four months to 68, not in Medicare

o 656 Re-contacts: Age-in or Late-to-Medicare respondents from Deft’s 2015 Age-in Study

• Exclusions: insured through Tricare or Medicaid

SAMPLE COMPOSITION

2016

• Data was collected between May 17, 2016 and June 2, 2016.

FIELDING DATES

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Nearly 40% of all Age-ins currently have individually purchased health insurance, a trend that continues to grow as a result of increased exchange activity.

“What is your current insurance status?”Letters indicate significantly greater difference from corresponding group, α < .05.

ESI Off-exchange State or federal exchange Uninsured

57%d

26%b,c,d

17%b,c,d

57%d

21%

12% 10%c

58%d

20%15%b

7%

53%

19% 20%b,c

8%

2013, n=1,829 (a) 2014, n=1,225 (b) 2015, n=1,992 (c) 2016, n=1,193 (d)

Current Source of Health Insurance Among Age-insBase: Age-ins not expecting employer coverage

39% are individually insured

In previous years, the growth in the Individual Market came from the rush to insurance from the uninsured (post ACA). Now that growth is starting to correspond to a drop in ESI.

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Total, n=1,081 ESI, n=617 (a) Off-exchange, n=201 (b)

State or federal exchange, n=200

(c)

Uninsured, n=63 (d)

76%64%

94%a,d 96%a,d79%

Of Age-ins who know whether they’ll enroll at 65, current ESI enrollees are the least likely to do so.

% Planning Enrollment at Age 65Base: Age-in, knows whether they will enroll

“Do you plan on switching your health insurance to Medicare when you turn 65/in the next 12 months?”

Deft’s 2016 Individual Market Shopping and Switching Study revealed that just over one-third of 60- to 64- year-olds in the Individual Market opted for a Bronze plan (vs. 24% of those younger than 60).

The average unsubsidized Bronze premium for a 60-year-old is $613 vs. $289 for a 40-year-old.¹ These consumers are poised to see substantial savings upon enrollment.

¹ https://www.healthcare.gov/health-plan-information-2016/Letters indicate significantly greater difference from corresponding group, α < .05.

Individual. Market

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Among Age-Ins and seniors Late-to-Medicare (LTM) in 2015*, 92% of those who expected to enroll in Medicare for 2016 did.

Not sure of upcoming Medicare enrollment, 2015 (c) n=124

Expected NOT to enroll in Medicare, 2015 (b)n=95

Expected to enroll in Medicare, 2015 (a)n=437

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

76%b

57%

92%b,c

Expected vs. Actual Enrollment of 2016 Age-In Study Re-ContactsBase: All 2015 re-contacts

Letters indicate significantly greater difference from corresponding group, α < .05.

*Of the 656 re-contacts, 542 (80%) were Age-ins in the 2015 study, while the remaining 132 (20%) LTM seniors.

Percent of Re-contact 2015 Respondents who Actually Enrolled in 2016

Among those who expected not to enroll, 57% actually wound up doing so.

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RESEARCH QUESTIONTo help assure coverage for health services that Medicare does not cover, there are two major types of health insurance for seniors: • Medicare Advantage, also called a Medicare HMO or PPO• MedSupp, also called Medicare Supplemental Insurance Both provide coverage that the basic Medicare program does not.

Medicare Advantage plans are HMOs, PPOs, and Cost plans. They have specified doctors and hospitals to provide you with health care, and they usually combine medical and drug coverage. If you visit a doctor that is not approved by the plan, you may not be covered for the costs, or may be charged more. Medicare Advantage plans tend to have lower premiums and protect their members with limits on what they will pay out-of-pocket each year.

MedSupp or Medicare Supplemental insurance, covers most of what is not covered by Medicare. It is purchased in addition to basic Medicare from the government. You can see any doctor or use any hospital that accepts Medicare. There is no protection for high out-of-pocket costs but, for many MedSupp policies, most health services are covered. Supplemental Medicare insurance tends to have higher premiums. Drug coverage is sold separately for an additional charge.

Which are you most likely to choose?

Age-ins were asked what type of plan they think they’ll enroll in when they become eligible for Medicare.12





Among those very certain of their expected coverage type in 2015, 70-75% wound up selecting the type of cover Age-In 2016 that they indicated they would last year.

“Which are you most likely to choose?”

Anticipated OMO in 2015n=85

Anticipated MedSupp in 2015n=287

Anticipated Medicare Advantage in 2015n=175

54%

18%

17%

18%

53%

29%

29%

29%

54%

Enrolled in Medicare Advantage, 2016Enrolled in MedSupp, 2016OMO, 2016

Anticipated Coverage Type at Initial Medicare Enrollment

Base: 2015 re-contacts, enrolled in Medicare in 2016, n=547


Expected Coverage Type Reported in 2015

Certainty Expected Coverage Type Reported in 2015

Enrolled MA 2016

Enrolled MedSupp

2016 OMO 2016

Medicare Advantage Very Certain (a) 75%b 16% 9%

Not Very Certain (b) 46% 33%a 20%a

MedSupp Very Certain (a) 20% 69%b 11%

Not Very Certain (b) 34%a 45% 21%a

OMO Very Certain (a) 23% 4% 73%b

Not Very Certain (b) 31% 23% 47%

Bold, italicized text used where expected coverage type reported in 2015 matches actual choice of 2016 Medicare coverage

Anticipated Coverage Type at Initial Medicare Enrollment by Certainty of 2015 Expectation

Base: 2015 re-contacts, enrolled in Medicare in 2016, n=547

Although Age-ins are not perfect in anticipating where they will enroll, knowing their intention is valuable to marketers.

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Overall, 86% of Age-Ins anticipate enrolling in a private Medicare plan next year.


“How certain are you that you will enroll in that plan type?”Base: Age-in, likely MA or MedSupp

Extremely

Very

Somewhat

Not very/not at all

17%

17%

41%b

26%

21%a

21%a

35%

23%

Likely MedSupp, n=575 (b) Likely MA, n=668 (a)


Original Medicare Only

MedSupp or Medigap

Medicare Advantage

14%

40%

46%

Anticipated Coverage Type at Initial Medicare EnrollmentBase: All Age-ins, n=1,450

Likely MedSupp enrollees are the most confident about their anticipated coverage decisions.

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Individual Market consumers plan enrollment in private coverage, with Exchange Enrollees skewing toward MA. Off-exchange Enrollees split between MA and MedSupp.

ESI, n=877 (a) Off-exchange, n=241 (b)

State or federal exchange, n=243

(c)

Uninsured, n=89 (d)0%

20%

40%

60%

80%

100%

47%d 46% 50%d32%

38% 47%d 42%d

26%

15%b,c7% 8%

43%a,b,c

Likely MA Likely MedSupp Likely OMO

Anticipated Plan Enrollment by Current Insurance CoverageBase: All Age-ins


Individual Market


For current ESI enrollees, Part A may be enough, as many plan to continue receiving ESI.

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Thank You!

merkleinc.com

David [email protected]

George [email protected]



