Customer experience has proven to be a key differentiator for Medicare Advantage as its enrollment continues to grow and now comprises 31% of individuals eligible for Medicare—nearly 18 million of the 57 million Medicare members across the United States.
According to the J.D. Power 2016 Medicare Advantage Study, one of the greatest opportunities for health plans to improve Medicare Advantage member satisfaction is in communications with both new enrollees and longer tenured members of their plan.
Overall satisfaction among Medicare Advantage members jumped to 790 on a 1,000-point scale in 2016 from 774 in 2015. What’s more, satisfaction with customer service, one of six factors comprising overall satisfaction, improved by 12 points from last year.
“Health plans are more likely to achieve high satisfaction scores when they serve members from the medical provider’s perspective, such as the time spent with the patient, providing strong communications, developing relationships, and offering coaching regarding how to work with the plan,” said Valerie Monet, Director of the Insurance Practice at J.D. Power. “Many plans have a multitude of product design features and provide technical manuals of 20 pages or more. Expecting members to become experts across the broad range of services and benefits offered is ultimately a losing battle for both the plan and the member.”
Monet noted that information and communication are crucial for members in terms of helping them know which product features they need while they are selecting a plan and in helping them interpret which benefits and services are covered by the plan they choose.
“Members are looking for their plan to be a trusted partner, and that begins at enrollment,” Monet said. “They are expecting their plan to provide guidance, ranging from assistance in selecting a doctor to helping them understand costs for prescriptions.”
Costs must be communicated effectively.
“Costs are another area where communication is critical,” said Monet. “Members who have a greater understanding of the costs—how much they are paying and what those costs cover—see the value their plan provides and, thus, are more satisfied with their health plan provider.”
Contributing to satisfaction with Medicare Advantage is that 48% of members “strongly agree” that their health plan is a trusted partner in their health and wellness, which increased overall satisfaction by 166 points.
Among customers who are delighted (overall satisfaction scores of 901 or higher) with their Medicare Advantage plan, 91% say they “definitely will” renew their policies and 89% say they “definitely will” recommend their plan to family and friends.