This year’s Annual Election Period (AEP) is poised to be a busy one.
AEP runs from October 15 to December 7. During this time, Medicare enrollees have the chance to review their plan options and make enrollment selections for the following year. This hasn’t changed – but the shopping behavior, the use of technology, and the sheer numbers have changed.
AEP will be here soon, so carriers and agencies only have a little while to prepare before crunch time begins.
Enrollment Numbers Have Skyrocketed
The number of Medicare enrollees has been growing rapidly as Baby Boomers hit retirement age. According to the United States Census Bureau, there about 73 million Baby Boomers, and about 10,000 of them turn 65 – and therefore age into Medicare – every day.
The total number of Medicare enrollees has grown to approximately 62 million, and more and more of these enrollees are choosing Medicare Advantage. CMS said that around 26.9 million Medicare beneficiaries were expected to enroll in a Medicare Advantage plan for 2021. This is a 44% increase since 2017. Many Medicare beneficiaries are drawn to the additional benefits that Medicare Advantage plans often offer. Starting in 2021, beneficiaries with End Stage Renal Disease have been able to join Medicare Advantage plans, and this policy change may have given enrollment an additional boost.
Plan Options Have Multiplied
It’s not just the number of Medicare Advantage enrollees that’s increasing. It’s also the number of Medicare Advantage plans. In 2021, there were 4,800 Medicare Advantage plans, or about 47 plans per county. This is about 2,100 more plans than were operating in 2017, an increase of 76.6%.
For plan year 2022, we can expect these trends to continue. There will be more Medicare beneficiaries, more Medicare Advantage enrollees, and more Advantage plan options. For Medicare beneficiaries, this means that the Annual Election Period will require even more of their attention since they have more plan options to consider. For carriers, it means that competition is fierce. Yes, there are more Medicare beneficiaries, but with so many choices, they’ll need a good reason to pick your plan.
Seniors Are Using More Tech Tools
Even back in 2019, many seniors were using email, social media, and other modern tech tools. Then the pandemic hit, and it forced seniors to become even more tech savvy. This change will impact both their Medicare enrollment and their benefit preferences.
According to the Associated Press, a market research firm found that Americans aged 65 and older spent an average of about $187 online each month in 2020. This is a 60% increase from 2019, and it makes this the fast-growing age group of online shoppers. While these numbers may focus on retail sales, if seniors can purchase groceries online, they can purchase Medicare coverage online, too. Shopping has gone digital, and this will impact insurance agents and carriers.
Care has also gone digital. During the pandemic, CMS expanded telehealth benefits, and many Medicare beneficiaries took advantage of this change. According to Fierce Healthcare, a poll found that 52% of seniors were comfortable with telehealth services, while 18% were still unsure. Among the seniors who had actually used telehealth services, the responses were overwhelmingly positive – 91% said they had a favorable experience, and 78% said they planned to use telehealth services again.
Tech usage may drop from the COVID-induced highs, but telehealth and online shopping are likely to remain among with at least some people, including some seniors. During the upcoming AEP, tech preferences may impact both enrollment methods and plan selections.
Top Concerns Include Costs and COVID
Seniors have many concerns heading into AEP. Two major concerns will be costs and COVID.
CMS has said that average Medicare Part D premium costs are expected to rise to $33 in 2022. This increase comes at a time when seniors are struggling with expensive prescription costs and inflation in general. When Medicare beneficiaries look at their 2022 plan options, many of them will be as worried about their costs as they are about their coverage.
COVID also continues to be a major concern for many people. The Delta variant has resulted in a new spike, and even people who have been fully vaccinated may become sick. Some seniors may feel more comfortable enrolling in a plan remotely. Their COVID concerns may also impact the benefits that they are interested in.
Security Is Essential
The adoption of digital tools carries many benefits, but it can also create security issues. Scammers frequently target seniors, and scams involving Medicare are especially common. According to AARP, one of the most recent scams is a robocall from someone claiming to be Becky, supposedly a patient advocate working with Medicare. The caller tries to pressure the senior into ordering genetic cancer screening, claiming that it’s approved by Medicare without the need for a doctor’s consultation – it’s probably a scam to steal people’s Medicare numbers or to engage in fraudulent billing.
Many seniors are growing wary of scams like this, and they should be. When approaching seniors, it’s important to establish a relationship built on trust.
Are You Ready?
Between October and December, things will get very busy for anyone involved in Medicare’s annual election period.
Although CMS regulations mean that specific plan information can’t be discussed ahead of AEP, many of the preparations will start long before October 15. Carriers and agents need to be ready to meet seniors on their terms and to provide solutions to the problems that Medicare enrollees are facing now. They also need to be organized and armed with top-notch lead generation strategies.
The Contact.io conference is a great way to get started. It’s happening between September 12 and 14 in Denver, Colorado. This conference is a fantastic opportunity to connect with marketers, call center operators, entrepreneurs, and technology leaders so you can learn the best practices for phone-fueled growth. DMM will be at the Contact.io conference, and we hope to see you there.
Start planning your AEP. Check out the Contact.io website for more information.
