Deft Research recently released a new study about senior health consumers, the 2008 Senior Market Dynamics Study. One of the groups looked at in this study is group retirees, who consistently agree that their health plans are quite stable. Despite this, there are still some important changes being experienced by these retirees. For example, 12% of retirees in this study said that the benefits offered to their spouse were reduced in the last two years. Cost sharing changes are even more likely. This year 31% of retirees said they experienced copayment increases and the same amount experienced coinsurance increases. For some retirees, these changes were enough to prompt shopping for new health coverage.

TOP LINE RESULT

A special offer is currently available for purchasers of the 2008 Senior Market Dynamics Study. To see a sample of results from this study or get an order form for the special offer please e-mail Barb Strnad, bstrnad@deftresearch.com.

The most recent study put out by Deft Research, Senior Market Dynamics, shows how and why seniors shopped and switched health insurance. The study also looks at price sensitivity and how different groups react to price savings and increases, as well as what type of premium and out-of-pocket costs they would choose for themselves.

Below is a chart showing how those individuals who shopped for or switched health insurance compare to those who did not look for new coverage during the AEP. If their plan’s premium increased by thirty dollars a month 42% of those who did not shop would begin looking for new coverage, while this is true for 63% of those who switched during the AEP. This study also looks at the switching patterns and price sensitivity of Group Retirees and Dual Eligibles.

TOP LINE RESULT

If you would like to see a preview of this study, please e-mail Barb Strnad at
bstrnad@deftresearch.com. A special offer is currently available for purchasers of the Senior Market Dynamics 2008 study. To see this offer, and the order form click HERE.

TOP LINE RESULT

During the recent annual election period 14% of individuals switched their medical coverage plan. Another 32% of those individuals shopped for new coverage but did not switch. One of the items that differentiates these groups is their use of insurance agents. In fact, 26% of switchers said they relied on their agent to decide which insurer they should choose. This was true for just 15% of shoppers. This study also looks at seniors that are Group Retirees, Dual Eligibles and those with no supplemental health coverage.

If you would like to see a preview of this study, please e-mail Barb Strnad at
bstrnad@deftresearch.com. A special offer is currently available for purchasers of the Senior Market Dynamics 2008 study. To see this offer, and the order form click HERE.

If you would like to see a preview of Deft’s latest study, please e-mail Barb Strnad at bstrnad@deftresearch.com

Deft Research’s new study, Senior Market Dynamics and it’s sister study, National Senior Loyalty both predict and explain the Medicare consumer’s plan switching behavior during the last Annual Enrollment Period. The table above shows that the Loyalty Study conducted prior to AEP predicted an upswing in the number of persons who would switch. And the Market Dynamics Study shows that an upswing did indeed occur. We also can see that the Loyalty Study predictions of higher switching rates were more accurate for Medicare Advantage customers, who switched at a rate of one in five, than for Medigap customers, whose switch rate was about half of MA’s. These different switch rates occurred despite our findings that similar percents of both MA and Medigap customers shopped.

Deft’s new Senior Market Dynamics will focus on the phenomenon of Medigap stickiness. Many Medicare marketers are wondering why so many Medigap customers shop, but fail to switch. Conventional wisdom is being challenged by this information suggesting that our assumptions about consumer price sensitivity and income brackets are flawed.

More Questions Answered

Not only do these the studies help you understand what happened, but they also help you plan for the future. Clients of Deft’s syndicated studies spend less time obtaining information and more time analyzing, discussing, and developing clear strategies that everyone on their team understands. The information leads to answers to marketing’s most important questions.

• Product What products should we emphasize?
• Price What should the price be?
• Place What should the marketing mix be?
• Position What market position should we take?

source: Deft Research, LLC

Why Seniors Want to Switch?

The 2007 National Senior Loyalty Study measures seniors intention to switch their medical and drug insurance. This study, recently released by Deft Research, LLC, seeks to determine what differentiates companies with high switch intention rates from those with lower rates. People who are more likely to switch insurers are those who don’t feel like their companies are measuring up to their standards. This study helps identify what successful companies are doing right and how to get companies with high switch intention back on track.