Medicare plans are reporting low enrollment during 2011 AEP, though the official numbers are not expected from CMS for a couple more weeks. Word on the street, and from Finelight clients, is that it was a difficult AEP.
The change in enrollment dates was just one obstacle. Another issue that became apparent as we reviewed the competition was that Medicare Advantage plans were all offering a $0 premium plan. With everyone showcasing the same benefits, prospects could not find a reason to switch. Under these circumstances, sales reps said prospects could not be convinced they needed to make a change.
In the last couple of years, CMS has pushed their Star Ratings to help eligibles find the best plans. But Star Ratings are fairly new, and prospects don’t understand the value of this new rating system. (Watch for my next blog on Star Ratings, as they continue to change.)
What about the target?
So how can plans differentiate themselves for the consumer? For at least the last two years, it’s been all about $0 plan premiums, which is no longer working. It’s time to reconsider the target audiences for this product.
Plans should go after people with Original Medicare. There are still millions who haven’t bought into a Medicare Advantage plan, and if there is no premium cost, that’s an easier sale. This is a great time to get Original Medicare fans to see the benefit of joining Medicare Advantage plans.
What else can plans do to differentiate?
National plans tend to create generic advertising messages. They need to find points of differentiation for their advertising. One local plan, Peoples Health in New Orleans, has been very strategic in their marketing messages. Because they are local, they can position against the national plans. And it’s effective. They are truly neighbors and friends with Medicare eligibles in their markets. Also, their customer service supports this strategy.
Plans must find new ways to stand apart in a confusing, complex Medicare world. Are you the plan that really helps those turning 65 understand their options? Are you going after people with Original Medicare who can join a MAPD plan for little or no monthly costs? Are you the local plan? Are you going to offer benefits that no other plan is offering?
If you’re looking for ways to differentiate your plan or increase your Medicare Advantage enrollments, I’d love to help. Just leave a comment here or email me at jeannene_manning (at) Finelight (dot) com.