Cavulus CEO Expects Inflationary Pressures Will Impact Medicare Advantage Competition
PITTSBURGH, Oct. 12, 2022 /PRNewswire/ -- Inflation concerns among increasingly savvy shoppers may spark more switching between Medicare Advantage (MA) organizations in the Annual Election Period (AEP) that begins October 15th, according to Patrick Phillips, CEO of Cavulus, a leading technology provider in the industry.
"Historically, the switching rate between insurer's is low, but we anticipate it may trend slightly higher than normal this AEP because of inflationary pressures," said Phillips.
The Cavulus CEO refers to a recent study from Deft Research indicating that an increasing number of seniors are having concerns about their potential healthcare affordability, with a quarter of seniors feeling that way in the spring and by summer nearly 60 percent.
Phillips points out, "roughly 70% of MA enrollees pay no monthly premium other than Part B, so price is not a consideration" but he notes, the other 30% (approximately 9 million beneficiaries) "shop for 'silver' or 'gold' tier plans in the $20 - $100 monthly premium range where there could be movement to more affordable options to achieve savings."
Supplemental benefits will likely be scrutinized as well, predicts Phillips. "Dental, vision, and hearing benefits have already become fundamental expectations, but since the breadth of extra benefits have grown to include things like acupuncture, transportation, and in-home support, I believe the inflationary trends may make many beneficiaries question the true value of some benefits."
"Supplemental benefits are attractive since they aren't offered in Original Medicare at all, but MA insurers must have utilization teams in place to make them meaningful," said Phillips. "Therefore. if beneficiaries aren't realizing a real impact to their overall well-being, they may opt for plans with leaner benefits at a lower cost."
"As a recent Kaiser Family Foundation article commented: 'Medicare Advantage is close to becoming the predominant way that Medicare beneficiaries get their health coverage and care" said Phillips. "MA serves nearly half of all Medicare beneficiaries, so you have a population that's more educated in the nuances of programs and they know how to shop."
ABOUT CAVULUS - Cavulus is a technology driven specialist in Medicare Advantage insurance solutions. The Cavulus Cloud-based Medicare Advantage Platform (Cavulus MAP™) unifies marketing, sales and enrollment operations, and is utilized by many of America's top insurers, including several BlueCross/ BlueShield companies, UPMC Health Plan, Johns Hopkins, Lumeris and United Healthcare. For details visit: www.cavulus.com.
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SOURCE Cavulus
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