With AEP Switching Low, MAOs Must Monitor Member Experience

by Lauren Flynn Kelly

Medicare beneficiaries have more plan choices than ever before, in addition to a dizzying array of supplemental benefits and increased PPO options, but plan switching has stalled, according to a new study from Deft Research. That leaves Medicare Advantage plans to consider whether low switching is largely due to members feeling satisfied with their current coverage or overwhelmed with the sheer amount of information being presented to them, observed industry experts during a recent webinar hosted by Rebellis Group LLC. As a result, members’ experience during the Annual Election Period may warrant a closer look as plans think about their strategy for the next AEP. 

Switching is slightly down this year 

• In its 2022 Medicare Shopping and Switching Study, Deft observed an overall switching rate of 11% during the most recent AEP. That’s compared with 12% seen in 2021 and 23% in 2015, reported George Dippel, executive vice president with Deft, during the March 10 webinar, “With more choices than ever, how will your Medicare Advantage plan stand out in 2023?” 
• Of the 11% of respondents who reported switching, 7% switched carriers while 4% swapped plans but stayed with the same insurer. More than one-third shopped but did not switch and 56% did not shop at all; less than 1% opted for OMO, according to Deft. 
• Of those consumers who shopped for coverage during the 2022 AEP, the most common prompt for MA enrollees to shop was the annual notice of coverage (ANOC) or a letter informing them of a rate change. “Most seniors really don’t want to think about Medicare unless they’re forced to,” said Dippel.  

Did Medicare TV ads overwhelm seniors? 

• One channel that is worth keeping an eye on is television advertising, which prompted the most amount of shopping by OMO beneficiaries. While more funds have gone toward this channel in recent years and resulted in increased shopping, the 2022 AEP saw “an explosion of more money” and celebrity endorsements, “but there was not a commensurate increase in their ability to drive shoppers,” said Dippel.  
• “The market has become absolutely saturated,” concurred Betsy Seals, CEO and founding partner of Rebellis. “And at a certain point, the beneficiaries stopped listening.”  
• The Deft research also suggested that attitudes toward Medicare marketing are changing, with some consumers expressing that they felt too much pressure from advertisers to shop.  
• “We have to think about whether we’re causing too much long-term damage [by] running too many of those ‘Call the number at the bottom of the TV screen’ ads” and creating consumer pushback, suggested Dippel. 

Quality ratings may not sway switchers 

• The speakers also suggested that a plan’s overall quality rating does not appear to be a major factor in switching, as only one-third of seniors are even aware of the Star Ratings.  
• In the event that a plan is not able to hold onto its high rating for the 2023 AEP — when it’s likely that CMS won’t apply the disaster relief forgiveness it did when calculating the 2022 ratings because of the COVID-19 pandemic — it may not make a huge difference when it comes to enrolling new members.  
• But member experience does factor into the ratings, and that includes the sales experience and disenrollment of dissatisfied members, making all of these issues important to consider as plans look ahead to 2023.  

From Radar on Medicare Advantage

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