Seniors who shop around for coverage during the 2024 Annual Enrollment Period (AEP)may not be as quick to jump plans based on the promise of more supplemental benefits and larger flex cards.
Indeed, while more seniors may shop around this fall than they did in previous AEPs, they also will be more skeptical based on their 2023 experience, according to George Dippel, president, Deft Research, in an executive research brief based on the firm’s 2023 AEP Gut Check Study.
Last year’s MA switch rate was 15 percent, the highest in five years. But these MA members who joined new plans last year may likely shop around for better coverage during this year’s AEP. “Low-tenured members are always the first to seek greener pastures,” Dippel said in the executive summary. “Some of those local carriers who saw membership move to the nationals should be dusting off win-back campaigns right now.”
The annual AEP Gut Check Study examines coverage issues seniors have experienced through the halfway point in the year, the benefits they are most interested in exploring for 2024, and the channels they plan to pursue as they potentially look for better coverage. As of mid-June, 48 percent of MA members have had at least one coverage issue. These complaints include:
- Fewer services on flex allowance than they thought (20 percent)
- Smaller flexible allowances than they thought (18 percent)
- Unexpected medical bill (14 percent)
- Trouble understanding cost of health services (14 percent)
- Drug coverage issues (13 percent)
- Harder to use flexible allowances than expected (12 percent)
More supplemental benefits and larger flex cards were main factors for people to switch plans last AEP. But they remain areas of dissatisfaction today so carriers should expect they will continue to be key factors this year among people who switch, according to Dippel.
But seniors will be wiser this year when it comes to their supplemental benefits.
“Larger purses are great, but not when the network of retailers accepting those dollars is limiting,” he wrote. “A huge dental allowance may sound wonderful, but not if the network excludes your preferred dentist. More seniors ought to be nibbling this fall than in previous AEP’s but don’t expect them all to take the flex card bait—hook, line, and sinker—as they did in previous years.”
For more information on the study findings, email info@deftresearch.com.