Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- VMS
- Abbreviations and terms
- Abbreviations
- Terms
- Companies mentioned in this report:
Executive Summary
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- Industry overview
- Health insurance companies are making money
- Baby Boomers are brand new to the world of Medicare
- Appeal of the internet
- Innovation—efficiencies and wellness programs getting a boost
- Lots of advertising but with a similar format
- Cost and confusion main barriers to entry
- Uneasiness about the future
- Paying for healthcare a major concern
Insights and Opportunities
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- Key points
- Baby Boomers—meet Medicare
- For Swing and WWII, price is key
Inspire Insights
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- Trend: Empowered Seniors
- Specifics
- Implications
Market Size and Forecast
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- Key points
- NHE is growing at a faster pace than GDP
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- Figure 1: Growth in NHE and GDP, 2004-19
- Costs of hospital services especially on the rise
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- Figure 2: Consumer price indices overall and for related healthcare items, annual rates of change, 2001-10
- Premiums have more than doubled in the past 10 years
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- Figure 3: Average annual health insurance premiums and worker contributions for family coverage, 1999-2009
- Most health dollars come from private insurance and Medicare
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- Figure 4: Source of nation’s healthcare dollars, 2007-09
- Private insurers lost 7.5 million enrollees from 2007 to 2009
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- Figure 5: Number and percentage of U.S. population uninsured and insured, 1999-2009
- Nearly all those 65+ have some type of health insurance
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- Figure 6: Number and percentage of U.S. population 65+ uninsured and insured, 2009
- Private insurers gain only slightly among the 65+ market
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- Figure 7: Number and percentage of U.S. population 65+ uninsured and insured, 1999-2009
- Some 47 million in total currently on Medicare
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- Figure 8: Medicare enrollment, 2000-10
Competitive Context
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- Key points
- Effects of Health Care Reform
- Medicare Part D Doughnut Hole Closing Up
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- Figure 9: Medicare Part D Standard Benefit Parameters, 2006-10
- Changes already in the mix
- Discontinuations of Medicare Advantage PFFS Plans
Segment Performance
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- Key points
- Some 90% supplement Medicare with other insurance
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- Figure 10: Supplemental coverage among Medicare beneficiaries, by income, 2008
- About 11.4 million currently in Medicare Advantage plans
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- Figure 11: Medicare Advantage enrollment, 2000-10
- Some 90% of Medicare beneficiaries have prescription drug plans
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- Figure 12: Prescription Drug Coverage among Medicare beneficiaries, 2010
Marketing Channels
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- Key points
- The internet and agents/brokers are considered best sources
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- Figure 13: Sources used for information about health insurance purchased individually, by type of Medicare insurance, February 2011
- Men especially active in searching out information on health insurance
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- Figure 14: Sources used for information about health insurance purchased individually, by gender and age, February 2011
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- Figure 15: Source used for deciding on health insurance purchased individually, by household income and employment status, February 2011
- Medicare website and agents/brokers two best sources
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- Figure 16: Sources used for learning about Medicare Supplement or Medicare Advantage insurance, by type of Medicare insurance, February 2011
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- Figure 17: Sources used to learn about Medicare Supplement or Medicare Advantage insurance, by gender and by age, February 2011
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- Figure 18: Sources used to learn about Medicare Supplement or Medicare Advantage insurance, by household income and employment status, February 2011
- Most women read materials, shop for best options
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- Figure 19: Attitudes about health insurance, by gender, February 2011
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- Figure 20: Attitudes about health insurance, by age, February 2011
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- Figure 21: Attitudes about health insurance, by household income, February 2011
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- Figure 22: Attitudes about health insurance, by employment status, February 2011
Market Drivers
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- Key points
- Some 5 million more will be eligible for Medicare by 2015
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- Figure 23: U.S. population, by age, 2011-20
- Average life expectancy is 78
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- Figure 24: Life expectancy of U.S. population, 2007
- The economy has not recovered
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- Figure 25: U.S. unemployment rate, by month, July 2008-February 2011
- Figure 26: Total nonfarm payroll losses or gains, in thousands, July 2008-February 2011
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- Figure 27: Employment–Population ratio, January 2000-February 2011
- Decline in household wealth
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- Figure 28: Median change in family wealth, 2007-09, by age of household head and region
- Concerns about debt
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- Figure 29: Composition of consumer debt, 1999-2010
- Figure 30: Consumers with new foreclosures and bankruptcies, 1999-2010
- Housing market not bouncing back
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- Figure 31: Median price of homes, 1998-2010
- The age of retirement is being pushed up
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- Figure 32: Age at which workers expect to retire, 2000 and 2011
- Figure 33: Worker confidence in having enough money to live comfortably throughout their retirement years, 2000-11
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- Figure 34: Retiree confidence in having enough money to live comfortably throughout their retirement years, 2000-11
- Figure 35: Confidence in having enough money to pay for medical expenses in retirement, 2001-11
Leading Companies
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- Key points
- Steep gains for industry from 2007 to 2009
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- Figure 36: Top 10 health insurance groups, by Direct Written Premium, 2007-09
- UnitedHealth Group most admired company
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- Figure 37: Fortune’s 2011—World’s Most Admired Companies
Brand Qualities
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- Key points
- BCBS, Kaiser, Humana among best plans
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- Figure 38: Member health plan ratings, April 2010
- Kaiser Permanente, Highmark best Advantage plans
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- Figure 39: Average rating for Medicare Advantage plans, 2011
- Confidence in health insurance industry is dismal
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- Figure 40: Level of confidence consumers have in various institutions, December 2009
- Trust and money are issues
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- Figure 41: Attitudes about trust and financial institutions, January 2011
- Uncertainty about Health Care Reform
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- Figure 42: Attitudes concerning insurer communications about Health Care Reform, January 2011
Innovation and Innovators
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- Key points
- Kaiser’s HealthConnect and My Health Manager
- Highmark’s Wellness Where You Live
- Online management of weight, chronic conditions
- Digital Health Coaching by HealthMedia
- UnitedHealth Group’s fight against diabetes
- Pharmacy Saver from UnitedHealthcare
- Humana Walmart-Preferred Rx Plan
- OptimizeMe App by OptumHealth
- MyHumana Mobile
Marketing Strategies
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- Key points
- Overview
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- Figure 43: Medicare estimated mail volume, Q1 2009-Q4 2010
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- Figure 44: Top five Medicare Mailers, Q4 2009-Q4 2010
- Print advertising
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- Figure 45: Humana Medicare Advantage print ad, 2011
- Figure 46: AARP/Unitedhealthcare Prescription Solutions print ad, 2010
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- Figure 47: WellCare Medicare print ad, 2010
- Figure 48: Blue Shield of California Medicare print ad, 2010
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- Figure 49: BlueCross BlueShield of Arizona Webinar print ad, 2010
- Figure 50: AARP/UnitedHealthcare SecureHoizons Medicare Plan Seminars print ad, 2010
- Direct mail advertising
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- Figure 51: Care Improvement Plus direct mail ad, 2011
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- Figure 52: Blue Cross Anthem Medicare Supplement Insurance direct mail ad, 2011
- Figure 53: BlueCross BlueShield of Florida Medicare Guide direct mail ad, 2011
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- Figure 54: AARP/UnitedHealthcare MedicareRx Plan direct mail ad, 2011
- Online and email advertising
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- Figure 55: Kaiser Permanente Senior Advantage HMO online ad, 2010
- Figure 56: Humana with Walmart Part D online ad, 2010
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- Figure 57: AARP UnitedHealthcare Medicare Plans online ad, 2010
- Figure 58: MyTotalCommerce email ad, 2010
- Television advertising
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- Figure 59: Highmark, Man works on car, television ad, 2010
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- Figure 60: AARP Woman with numbers on Medicare, television ad, 2010
- Figure 61: Kaiser Permanente Linda, television ad, 2010
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- Figure 62: Medicare Health Care Reform changes, television ad, 2010
The Consumer—Health Insurance Ownership
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- Key points
- Health insurance widely owned among those 66+
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- Figure 63: Ownership of selected insurance products, by gender, February 2011
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- Figure 64: Ownership of selected insurance products, by age, February 2011
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- Figure 65: Ownership of selected insurance products, by household income, February 2011
- Health insurance peaks among the employed
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- Figure 66: Ownership of selected insurance products, by employment status, February 2011
- Supplemental insurance owned by 36%, 17% have Advantage plan
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- Figure 67: Type of health insurance coverage, by gender, February 2011
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- Figure 68: Type of health insurance coverage, by age, February 2011
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- Figure 69: Type of health insurance coverage, by household income, February 2011
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- Figure 70: Type of health insurance owned, by employment status, February 2011
- Satisfaction high with current provider
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- Figure 71: Satisfaction with health insurance, by gender, February 2011
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- Figure 72: Satisfaction with health insurance, by age, February 2011
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- Figure 73: Satisfaction with health insurance, by employment status, February 2011
- BCBS and UnitedHealthcare are the largest providers
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- Figure 74: Health insurance provider, by type of insurance plan, February 2011
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- Figure 75: Health insurance provider, by age, February 2011
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- Figure 76: Health insurance provider, by household income, February 2011
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- Figure 77: Health insurance provider, by employment status, February 2011
- One in three made recent Medicare change
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- Figure 78: Changes in Medicare insurance coverage during past two years, by gender, February 2011
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- Figure 79: Changes in Medicare insurance coverage during past two years, by age, February 2011
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- Figure 80: Changes in Medicare insurance coverage during past two years, by household income, February 2011
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- Figure 81: Changes in Medicare insurance coverage during past two years, by employment status, February 2011
- Confusion, costs main barriers for Advantage, Supplement
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- Figure 82: Reasons haven’t purchased Medicare Supplement or Medicare Advantage insurance, February 2011
The Consumer—Views about Retirement, Healthcare
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- Key points
- Retirement takes hold at age 70
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- Figure 83: Retirement status of those 63+, by gender and age, February 2011
- Adults of all ages concerned about retirement
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- Figure 84: Attitudes about retirement, by gender, February 2011
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- Figure 85: Attitudes about the economy and retirement, January 2011
- Healthcare costs are a major concern
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- Figure 86: Attitudes about health insurance and retirement, by gender, February 2011
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- Figure 87: Attitudes about health insurance and retirement, by age, February 2011
- Healthcare costs also big concern to high earners
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- Figure: 88 Attitudes about health insurance and retirement, by household income, February 2011
- Retirees very concerned about costs of healthcare, money to live on
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- Figure 89: Attitudes about health insurance and retirement, by employment status, February 2011
The Consumer—Views about Finances, the Economy
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- Key points
- Many became worse off financially in last year
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- Figure 90: Economic outlook: Finances better or worse than 12 months ago, by gender and by age, July 2009-September 2010
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- Figure 91: Economic outlook: finances will be better or worse in next 12 months, by gender and by age, July 2009-September 2010
- People 60+ conservative about finances, dislike debt
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- Figure 92: Attitudes about personal finance, by gender and by age, July 2009-September 2010
The Consumer—Views about Health, Nutrition
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- Key points
- Health, nutrition, and doctor’s advice very important
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- Figure 93: Attitudes about food and nutrition, by gender and by age, July 2009-September 2010
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- Figure 94: Attitudes about vitamins and medicine, July 2009-September 2010
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- Figure 95: Attitudes about doctors and guidance on health, July 2009-September 2010
Cluster Analysis
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- Cluster 1: Well-insured Seniors
- Cluster 2: Retirement Ready
- Cluster 3: Vulnerable Seniors
- Characteristics
- Characteristic tables
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- Figure 96: Health insurance and Medicare clusters, February 2010
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- Figure 97: Ownership of selected insurance products, by health insurance and Medicare clusters, February 2010
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- Figure 98: Type of health insurance owned, by health insurance and Medicare clusters, February 2010
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- Figure 99: Satisfaction with health insurance, by health insurance and Medicare clusters, February 2010
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- Figure 100: Attitudes about health insurance and retirement, by health insurance and Medicare clusters, February 2010
- Demographic tables
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- Figure 101: Health insurance and Medicare clusters by gender, February 2010
- Figure 102: Health insurance and Medicare clusters by household income, February 2010
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- Figure 103: Health insurance and Medicare clusters by marital status, February 2010
- Figure 104: Health insurance and Medicare clusters by education, February 2010
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- Figure 105: Health insurance and Medicare clusters by employment, February 2010
- Cluster methodology
Appendix—Trade Associations
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