The following is drawn from several national and regional studies - all done within the past year by Deft Research.

• The results show that as many as 5% of seniors enrolled in their current medical plan through the Internet (a large portion used Medicare.gov)
• About 15% of seniors say they used the Internet to obtain information about their health and drug coverage options — again the most frequently visited sites are Medicare.gov and the senior’s existing health plan; we found that seniors go to the site, they don’t use search engines as often.
• The majority of those who use the Internet say it helped them gain an understanding of their options. This “helpfulness” rating is second only to mail from the seniors own health plan.

Using Research

Deft clients can use these and other data to support marketing and sales plans. The data helps define the character of each sales and marketing channel and supports Management’s resource allocations.

Our clients include Wellpoint, Kaiser, Tufts Health Plan, Optima Health, The Brookings Institution, The Segal Company, HMSA, Arcadian Health Plans, Highmark, Sierra Health Systems, BCBS of NC, Priority Health, SCAN Health Plan, CIGNA, BC of Idaho, Arkansas BCBS, Sutter Health, Pfizer, UAFC, and others.

If you would like to discuss the uses of this research and how custom research works, please call 612/436-8318 or email rhamer@deftresearch.com

612/436-8318.

Deft Research recently conducted a research project uniquely featuring parallel data collection using Internet surveys and telephone interviews. Using the Internet, researchers can obtain information from a large number of respondents quickly and inexpensively, however we don’t know whether Internet research contains biases and whether whatever biases are found are predictable from one project to the next. We are not aware of another project that used both telephone and Internet in side by side research about senior citizen health insurance. This is a unique chance for comparison.

COMPARISON

More detail about the specific study and comparison results is available at
BEAUTIFUL THINGS

Below is a table showing correlations and average differences between Internet and Telephone responses. Where the correlation is high (closer to 1.000), the the distribution of answers over the possible response options was similar for Internet and telephone respondents. The lower the correlation, the less alike are the answers of the two groups. In the one case where the correlation is negative, Internet and telephone respondents tended to answer in opposite ways.

In this analysis, correlations tended to be high, so the next thing to look at is whether there was much difference in responses. The table shows the average difference in response frequency between the two groups. High correlations and smaller differences indicate the two groups responded almost identically. High correlations and larger differences indicate that one of the two groups tended to answer at higher ends of the response option scale than the other; the distribution of their answers had the same shape (bell curve for example) but one group’s distribution was over lower values than another’s. An example in this case, telephone respondents tended to answer more positively to questions about market differences.

STATISTICAL COMPARISONS OF INTERNET AND TELEPHONE RESPONSES

* A high correlation nearing 1.00 indicates that Internet and Telephone responses have an more identically shaped distribution of values along a range of response options. A negative correlation means that where Internet responses are high, Telephone responses are low , and vice versa.

CONCLUSION

Telephone and Internet methods produced different results for some questions and nearly identical results for others. Overall, the methods produce similar distributions along a range of response options, but the values differ on average by 9 percent.

The methods were similar on questions having to do with actual past events such as whether someone helped with a decision and what method of enrollment was used. They were also similar on questions with scaled response options (11 point scales).

In some cases, the response values provided by Internet and Telephone respondents are different even though the “shape” of the response distribution was the same. In these cases, we would say the two methods produce “parallel” results.

The methods are most different when questions involve perception or sensitive information. Telephone respondents were more likely to provide a positive response to questions about perceived market differences. Internet respondents, using a more private media, were more likely to indicate they couldn’t afford insurance.

Method Note: for this study, telephone respondents were not given the “Don’t Know” response option, but could answer that way if they thought of it on their own. Internet respondents could see all response options including “Don’t Know” laid out before them. We think this is a partial reason for the tendency of telephone respondents to give more positive answers.

These results can be used by Deft Researchers and others when constructing future questionnaires.

This study is a continuation of our coverage of the dynamics operating within the senior market for health and drug coverage. The study captured meaningful samples of seniors obtaining health insurance through the individual market, through employer-sponsored retiree groups, and through Medicare/Medicaid dual eligible status.

The details and implications of the research will clarify your window on the world. It will help you add value by directing your firm into profitable areas. With this research you can make the case for various product developments and pricing actions, your marketing and sales models will bear the weight of solid evidence, and you can develop strategies based on the measured market potential of retirees, duals, and individuals.

The new study is titled, “Senior Market Dynamics 2007.”

• The research comes from surveys of 1,600 seniors completed just last month.

The study covers switching behavior of retirees, duals, and individuals in three complete chapters.

• The research finds that in the dual eligible, med supp, and MA markets nearly 50% of seniors shopped for medical or drug coverage during the fall enrollment period. A lesser but significant percent switched.
• Switch triggers involve benefit design, extra benefits, price, chronic illness, and elements of brand equity such as trustworthiness.

This research also has served as the basis for local market and customized studies. And could again for your health plan or senior organization.

TOP LINE RESULT
The figure below shows the switching and shopping behavior of seniors with Medigap (Supplemental Medical) or enrolled in Medicare Advantage plans.

Our clients include Wellpoint, Kaiser, Tufts Health Plan, Optima Health, The Brookings Institution, The Segal Company, HMSA, Arcadian Health Plans, Highmark, Sierra Health Systems, BCBS of NC, Priority Health, SCAN Health Plan, CIGNA, BC of Idaho, Arkansas BCBS, Sutter Health, Pfizer, UAFC, and others.

FROM THE CONCLUSION.This study shows high proportions of seniors in each of three markets considering and shopping for health insurance. This in itself implies that the market share of any health plan cannot be taken for granted in the coming years. Health plans wishing to exploit the switching triggers of individuals, duals, or retirees may use this report to prioritize and target their activity.

For health plans making decisions about pricing, attracting seniors with extra benefits, priority marketing channels, and market potential, this report supplies a set of action standards that reduce uncertainty and financial risk.

THE SENIOR MARKET DYNAMICS 2007 OFFER

Guarantee. If you are not satisfied, you can have your money back if you ask within 30 days of purchase.