Report: Insurers should build trust to stand out in Medicare Advantage market
As MA plan options continue to grow, retention and competition for new members are even more critical.
Photo: FG Trade/Getty Images
The biggest factors influencing retention in the fast-moving, competitive Medicare Advantage market are trust and the ability to resolve problems or complaints, according to the J.D. Power 2023 U.S. Medicare Advantage Study.
The study found that overall level of trust and resolving problems or complaints are the most highly correlated factors associated with members renewing their health plan. Satisfaction with trust increases 353 points (among a possible 1,000) among those likely to renew with their health plan compared with those who are unlikely to renew. Similarly, satisfaction with problem resolution increases 351 points among those likely to renew.
The finding comes as the number of MA plan options continues to grow, which makes retention and competition for new members even more critical. In addition, member experience and satisfaction are prominent drivers of CMS Star Ratings.
"Consumers are becoming more sophisticated about researching their healthcare options," said Christopher Lis, managing director, global healthcare intelligence at J.D. Power. "Consumer-facing brand attributes like trust, reputation, reviews and customer ratings have become key drivers of satisfaction and customer loyalty. Most Medicare Advantage plans are performing well on the basics, yet there are opportunities for improvement in the areas of ease of finding care, care coordination and innovation around digital self-service."
WHAT'S THE IMPACT?
With the eldest members of the baby boomer generation now well into their 70s and an estimated 10,000 Americans turning 65 each day, Medicare Advantage plans are the fastest-growing segment of the health insurance market, the report found.
Overall satisfaction with Medicare Advantage plans is generally good: The satisfaction score is 652 on the 1,000-point scale, which is squarely in the good-to-great range of the newly redesigned U.S. Medicare Advantage Study index model. Plans perform highest on trust, ease of doing business and meeting member product/coverage needs.
Ease of finding care and digital tools are now the biggest pain points: Just 31% of Medicare Advantage plan members say their plan made it easy for them to find care, and just 34% say they used two or more digital tools offered by their plan. Overall customer satisfaction scores are 158 points higher, on average, when members say it is easy to find care and 62 points higher, on average, when members use two or more digital tools.
J.D. Power also found that health plan ratings and customer reviews spur customer satisfaction. The most effective sources of information about MA plans are health plan ratings, information received directly from the plan itself and recommendations from friends, relatives and coworkers.
The report also graded insurers on their performance in various regions and in specific metrics. SCAN Health Plan ranks highest in overall customer satisfaction among Medicare Advantage plans in California, with a score of 708 out of 1,000. Humana (692) ranks second, and Kaiser Foundation Health Plan (680) ranks third.
Humana ranks highest in overall satisfaction among Medicare Advantage plans in Florida, with a score of 670. UnitedHealthcare (653) ranks second, and Aetna (647) ranks third.
Excellus BlueCross BlueShield ranks highest in overall satisfaction among Medicare Advantage plans in New York, with a score of 700. Healthfirst (680) ranks second, and Humana (651) ranks third.
UPMC for Life ranks highest in overall satisfaction among Medicare Advantage plans in Pennsylvania, with a score of 709. Highmark (706) ranks second, and Aetna (670) ranks third.
Blue Cross Blue Shield of Texas ranks highest in overall satisfaction among Medicare Advantage plans in Texas, with a score of 676. Cigna Health (668) ranks second, and Humana (648) ranks third.
THE LARGER TREND
Medicare Advantage has steadily grown in popularity, and now covers slightly more than half of all Medicare beneficiaries. One of the drivers of this growth has been people switching from traditional Medicare, especially younger and healthier patients.
Switching from fee-for-service Medicare to MA more than tripled between 2006 and 2022, whereas switching from MA to fee-for-service Medicare decreased, a trend that started to gain steam around 2019.
Federal spending on bonus payments to insurance companies that offer Medicare Advantage plans will reach at least $12.8 billion in 2023, according to a new KFF analysis. That's a nearly 30% increase from 2022, and more than quadruple the spending in 2015.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
