Medicare beneficiaries have concerns about sustainability of program but want current benefits
Three quarters of beneficiaries worry about Medicare’s sustainability, but there are limits to what they are willing to accept to maintain it, according to research conducted by eHealth, Inc., an online private health insurance marketplace. The findings are based on a June survey of 3,582 current Medicare beneficiaries who enrolled in plans through eHealth.
While 74 percent of those surveyed worry about the long-term viability of Medicare, nearly all (97 percent) feel they are entitled to the benefits they receive today. Eighty-four percent say significant changes must be made if the program is to survive for future generations. However, only 12 percent said they would accept increases in their current costs or reductions in their benefits if such changes ensured the sustainability of Medicare.
"After paying into Medicare for many years, current beneficiaries justifiably feel they are entitled to the benefits they've earned," said eHealth CEO Fran Soistman in the study announcement. "Our new research shows that they are aware of, and care about, the long-term financial challenge of funding Medicare. However, it also highlights the challenges for elected leaders who want to do something about it. My hope is that our research published today helps bring valuable insights to the conversation."
Additional highlights from the report:
- Seventy-six percent of Democrat voters and 74 percent of Republican voters worry about the sustainability of the Medicare program.
- Sixty-two percent of Republican voters give the government a D or F grade for working to secure the future of Medicare, but 73 percent of Democrat voters give the government an A, B, or C grade.
- Twenty-five percent of those earning under $25,000 per year are "very worried" about the future sustainability of Medicare, compared to only 12 percent of those with an annual income over $100,000.
MA satisfaction index: Many enrollees don’t fully understand their plans
A survey of 351 MA members by Retirement Living found that only 44 percent fully understand their plan. Factors that lead to confusion over their plans include complex plan details (68 percent); lack of familiarity (56 percent); and inadequate communication/education about benefits (44 percent). As a result of their confusion over the benefits, 51 percent said they received unexpected bills for uncovered services; 46 percent had higher than expected out-of-pocket expenses; and 44 percent expressed frustration or dissatisfaction with their plans. Plan members said they were most likely to seek clarification about their dental coverage (29 percent) and out-of-pocket costs (24 percent). When coverage questions like these arose, 73 percent consulted their plan’s website and 44 percent contacted the customer service department.
The survey found that one in 10 beneficiaries were planning to change their coverage plans in the next year due to cost (50 percent), provider network (39 percent), and quality of care (29 percent).
Trust and problem resolution linked to MA renewal, J.D. power finds
Trust and the ability to resolve problems or complaints are the biggest factors influencing retention in MA, according to the J.D. Power 2023 U.S. Medicare Advantage Study. The research is based on the responses of 5,887 members of MA plans in five market-based U.S. regions: California, Florida, New York, Pennsylvania, and Texas, conducted in January through June.
“As the number of Medicare Advantage plan options continues to grow, competition for new members and retention are becoming increasingly critical,” said Christopher Lis, managing director, global healthcare intelligence at J.D. Power, in the announcement. Furthermore, he said, in 2023, member experience and satisfaction are prominent drivers of Centers for Medicare & Medicaid Services Star ratings. “Complementing these trends, J.D. Power research demonstrates that consumers are becoming more sophisticated about researching their health care options. Consumer-facing brand attributes like trust, reputation, reviews, and customer ratings have become key drivers of satisfaction and customer loyalty. Most Medicare Advantage plans are performing well on the basics, yet there are opportunities for improvement in the areas of ease of finding care, care coordination and innovation around digital self-service.”
Other findings from the study include:
- Overall satisfaction with MA plans is generally good: Overall customer satisfaction with MA plans is 652 (on a 1,000-point scale), which is squarely in the good-to-great range of the newly redesigned U.S. Medicare Advantage Study index model. Plans perform highest on trust, ease of doing business, and meeting member product/coverage needs.
- Trust and problem resolution hold keys to customer loyalty: Level of trust and resolving problems or complaints are the most highly correlated factors associated with members renewing their health plan. Satisfaction with trust increases 353 points among those likely to renew with their health plan compared with those who are unlikely to renew. Similarly, satisfaction with problem resolution increases 351 points among those likely to renew.
- Ease of finding care and digital tools now biggest pain points: Just 31 percent of MA plan members say their plan made it easy for them to find care and just 34 percent say they used two or more digital tools offered by their plan. Overall customer satisfaction scores are 158 points higher, on average, when members say it is easy to find care and 62 points higher, on average, when members use two or more digital tools.
- Health plan ratings and customer reviews spur customer satisfaction: The most effective sources of information about MA plans are health plan ratings, information received directly from the plan itself and recommendations from friends, relatives, and co-workers.