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  • Predict Health Team

Reducing Churn Among Consumers Who Focus on Coverage First

Our last group of consumers who choose their Medicare Advantage plan based on the coverage it provides. At 19%, this is almost every fifth consumer, and one of the larger consumer segments we identified with our research.

This group of consumers is more aware of their medical history and so might be expected to have a better sense for what they need. If they have higher levels of income, these are consumers who looking for peace of mind. They don’t want to receive surprise bills and but also want a flexible plan that permits some choice. The best way of reducing churn with these customers is to make sure that they have access to a more flexible plan even if the plan comes with a monthly premium.

These consumers are more brand conscious than most, looking for security and wanting to work with a trusted company. Not surprisingly, they are second most-likely to use a broker to help them decide.

Here, the onboarding process can be about validation. The big thing to watch is for whether somebody has chosen a plan that might become unaffordable over time. A somewhat healthier participant might, for example, be better served with a simpler plan that does not come with an ongoing expense.

The validation also matters if the brand awareness is based on a plan provided by a prior employer. These plans can be very different and so it’s important to make sure that the consumer knows exactly what they’re getting, otherwise, the risk of early churn remains.

Overall, choosing a Medicare Advantage is a complex decision that asks consumers to anticipate what they might need in the future. Somebody’s current medical condition provides some guidance but the

unexpected can still happen. With all consumers, it’s important to find the best way to stress-test their assumptions and to ask them how prepared they are to deal with certain eventualities or the need to make extra payments. This is why they onboarding period is so important and why it’s perhaps the best

lever for reducing early churn.

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