Table of Contents
Executive Summary
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- Market overview
- Key trends
- Medicare recipients are very satisfied, and don’t ask a lot of questions
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- Figure 1: Medicare enrollment behaviors, seniors versus younger beneficiaries, December 2019
- Cost, choice of doctors, coverage are most important factors
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- Figure 2: Factors in selecting Medicare coverage, December 2019
- Consumers are ready for a more progressive take on healthcare
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- Figure 3: Philosophy of healthcare and Medicare, seniors versus younger Medicare beneficiaries, December 2019
- What it means and what’s next
The Market – What You Need to Know
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- Medicare Advantage growing much faster than Original Medicare
- Medicare spending and Medicare funding are not aligned
Market Size
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- Vast majority of Medicare recipients qualify simply due to age
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- Figure 4: Medicare beneficiaries, by age group, as of 2017
- Original Medicare still most popular, Medicare Advantage growing faster
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- Figure 5: Number of people enrolled in Medicare hospital/medical plans, 2014-19
- Figure 6: Number of people enrolled in Medicare prescription drug plans, 2014-19
- Figure 7: Number of people enrolled in Medicare Supplement Insurance (Medigap), 2014-19
Market Forecast
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- Medicare spending to take off in next decade
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- Figure 8: Medicare expenditures as a percentage of the Gross Domestic Product, 2000-93
- Though spending is set to rise, funding is not
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- Figure 9: HI trust fund balance at beginning of year as a percentage of annual expenditures, 1990-2027
Market Breakdown
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- Healthcare spending increased almost 30% from 2013-18
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- Figure 10: Best- and worst-case forecast value sales of healthcare, at current prices, 2013-23
- Seniors are more motivated by prevention
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- Figure 11: Motivations for living healthy – Seniors vs all, August 2018
Key Players – What You Need to Know
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- Almost all seniors have health insurance
- US spends more on healthcare than any other country, with dubious ROI
- Medicare for all? Probably no time soon
What’s Working
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- Folks are covered – only 1% of people over 60 are without health insurance
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- Figure 12: Percentage of uninsured population, by age, 2017-18
- Preventative care is in focus
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- Figure 13: BlueCross BlueShield of Michigan, Wellness Program mailer, March 2019
- Figure 14: GenHealthy Medicare Supplement plans, 2020
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- Figure 15: Humana, SilverSneakers program, January 2020
- Insurers have finely tuned their marketing cadence
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- Figure 16: Medicare annual enrollment period direct mail volume, 2017-18
What’s Struggling
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- Healthcare spending is out of control
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- Figure 17: Healthcare spending and life expectancy, by country, as of 2018
- Having tough conversations, finding novel solutions
- Medicare diabetes prevention program falls short of goals
What to Watch
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- Aetna plans to fight loneliness with intergenerational friendship
- Third-party partnerships drive efficiency, create better health outcomes
- Ride-hailing partnerships
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- Figure 18: UberHealth example notification, April 2019
- Apple to subsidize Apple Watch costs through Medicare Advantage plan
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- Figure 19: Devoted Health Plans, Apple Watch subsidy, November 2019
- Medicare for all?
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- Figure 20: Bernie Sanders Medicare for all mug, January 2020
- Figure 21: Philosophy of healthcare and Medicare, seniors versus younger Medicare beneficiaries, December 2019
The Consumer – What You Need to Know
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- More than 90% of seniors have Medicare
- Various options are weighed when selecting a plan, cost foremost among them
- Younger Medicare patients consider different coverage factors
Types of Healthcare Coverage
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- More than 90% of seniors are on Medicare
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- Figure 22: Types of health insurance, general population versus 65+, December 2019
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- Figure 23: Humana, ABCs of Medicare informational video, September 2019
- Figure 24: Aetna, Medicare Advantage plan mailer, September 2019
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- Figure 25: Mutual of Omaha, Medicare Supplement mailer, September 2019
Factors in Choosing a Medicare Plan
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- Cost, first and foremost
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- Figure 26: Factors in selecting Medicare coverage, December 2019
- For those under 65, prescription coverage and star ratings more important
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- Figure 27: Factors in selecting Medicare coverage, seniors versus younger beneficiaries, December 2019
- Medicare recipients under 65 look to far more sources
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- Figure 28: Sources used to learn about Medicare, seniors versus younger beneficiaries, December 2019
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- Figure 29: USAA Medicare supplement email, August 2019
Enrollment and Coverage Behaviors
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- Many folks don’t do much research
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- Figure 30: Medicare enrollment behaviors, seniors versus younger beneficiaries, December 2019
- Changing coverage isn’t common
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- Figure 31: Changes in Medicare coverage, seniors versus younger beneficiaries, December 2019
Attitudes toward Healthcare
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- Under 65 recipients think about healthcare differently
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- Figure 32: Satisfaction with and costs of healthcare, seniors versus younger Medicare beneficiaries, December 2019
- Medicare wish list: dental, vision, more preventative care
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- Figure 33: Normative views on healthcare, December 2019
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- Figure 34: UnitedHealthcare mobile capabilities, September 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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