Study Overview

Between October 9th and 14th 2007, we surveyed 2,023 seniors about their health insurance coverage. Our web-based survey was weighted towards younger seniors– the most likely purchasers of new coverage – and was national in scope.

We repeated measures used for Deft Research’s 2006 National Senior Loyalty Study, and designed the study to track changes in the senior health insurance industry’s customer loyalty, as well as the intention of customers to switch coverage, and their perception of market differentiation.

To improve the usefulness of our results, the 2007 survey added questions about benefits, premiums, use of health services, and satisfaction. As these are data available to health plans through their own resources, the study’s results can be used to more directly prioritize activities designed to enhance customer relationships.

We found that senior consumer loyalty to their health plans has declined during the past year. Fewer consumers are willing to recommend their current Medicare insurer and many more are considering looking for a new insurer.

The study links switch intention to benefit design – consumers who face the most frequent and highest dollar cost sharing for provider services and drugs are less likely to be loyal and are more likely to consider switching. When consumers’ perceptions of their health insurers are added to the mix, trustworthiness, customer service, access to drugs, and general perception of fair costs are also keys to keeping customers in a “no intention to switch” state of mind.

Loyal and stable customers are valuable in two ways. First, they have present value as a revenue stream. Second, they have future value due to their greater likelihood of retention and in their greater likelihood of referring others to the company.

The study produced 32 health and drug insurer profiles.