The “gold rush” in Medicare Advantage (MA) may be ending, as government policy changes, increased costs, and a shift in beneficiary preferences are impacting the industry’s profitability.
In the AEP ending in December 2024, the growth in MA was only 1.28%. 51 percent of the eligibles are now in a MA plan. This pattern suggests that the MA market is now saturated.
(Image Source: Media Logic)
For the Medicare marketer, strategy becomes clear. To be effective in retaining members or acquiring new members, market segmentation will be necessary. Just as in other market sectors that matured the cost of acquisition and the cost of loyalty became higher, which demands better targeting and more personalized messaging. The two tasks must be coordinated.
For example, if I need a ride to my doctor in an urban area, I will be more responsive to a credit for Uber/Lyft service and less responsive to the OTC debit card or gym membership. The marketer needs to grasp my need/preference and personalize the offer to me. Otherwise, I will switch or select another plan.
Of course, the most significant need is a provider in the network that satisfies my sense of care.
What is your Medicare AEP strategy? Are you still planning to use brute force marketing to gain one more member?
Or have you do you plan to:
- Evaluate the member market segments
- Create personas for each segment
- Score your prospect list to match your segments
Data Decisions Group offers primary market research, advanced analytics, modeling with Medicare oriented 3rd party data to create the most responsive audience for Medicare Advantage.