The Evolution of Medicare Advantage Marketing

Over the last two decades, the Medicare Advantage (MA) industry has exploded, with more than one-third of older Americans now enrolled in an MA plan. As MA has evolved, the type of consumers looking to enroll has shifted as well, providing an extra challenge for Medicare marketers. Having to decipher the generational nuances between the Silent Generation and the Baby Boomers can be a challenge, and marketers must learn that not all 65-year-olds are created equal.

Members of the Silent Generation, born between the mid-1920s and mid-1940s, are typically trusting of authority figures, such as government officials, law enforcement, and professionals like doctors and lawyers. When making a purchase, the Silent Generation prefers to lean on the expertise of others to make recommendations on the right product or service, and to have that conversation face-to-face. They trust a handshake as a bond you do not break.

Baby Boomers, born between the mid-1940s and mid-1960s and raised amid the Vietnam War and Watergate, are more cynical. Unlike their predecessors, Baby Boomers prefer to conduct independent research at the front end and may only want to consult with an expert before making a final decision.

As a seasoned Medicare marketer, with experience spanning more than 20 years, I’ve witnessed this evolution in consumer attitudes. Here’s how I’ve adapted my marketing strategies to stay competitive:

The 1990s: Face-to-face marketing. Even into the late ’90s, the Medicare marketing model still included having salespeople meet face-to-face with potential new members. Seniors of the Silent Generation were receptive to health-plan representatives visiting their homes, often inviting them inside for coffee and a detailed product explanation ⁠ — similar to someone selling vacuum cleaners or Tupperware sets.

2000–2008: Cold calls and the beginning of internet marketing. By the 2000s, as Baby Boomers started to age into Medicare, phone- and internet-marketing became increasingly relevant. Face-to-face interactions were less welcome, so marketers instead prioritized tactics such as cold calls and email marketing.

2009–2019: Digital marketing and direct mail. In July 2008, the enactment of the Medicare Improvements for Patients and Providers Act changed the laws governing MA-plan marketing. Again, we had to recalibrate. The legislation outlawed cold calling and created more hoops for insurers to jump through before talking to a beneficiary, like a completing a Scope of Appointment form. Since then, the industry has relied heavily on television, direct mail, digital advertising, social media, and paid search results to reach potential members.

In 2020 and beyond. I’m excited about the growth of hyperlocal marketing and an increased focus on member retention strategies.

Hyperlocal marketing is an effective, evergreen strategy that requires a strong understanding of target communities, as well as creativity in execution. Put simply, different areas of the country, and even within the same state, represent distinct markets. For example, to reach potential members in New Jersey, Clover Health has deployed the following initiatives:

• Featured real Jersey City members in marketing photos and invited them to local member events, including a breakfast at Clover Health’s office.
• Filmed a New Jersey-member testimonial with the Clover Health nurse practitioner she worked with to help her quit smoking.
• Decorated a Korean-American Medicare brokerage with Clover Health-branded signage and marketing materials translated into Korean specifically for the significant Korean-American population in Bergen County.
• Launched co-branded billboards with local in-network providers and health system partners to help reach potential members who visit those facilities.

Social media marketing can also support a hyperlocal strategy, as marketers can target MA eligibles by geographic area. Adults aged 65 or older are the fastest-growing demographic on Facebook and are responsive to robust social media advertising and informative brand pages, especially those localized to their region.

Member retention is another key component of any forward-thinking MA marketing strategy, as brand loyalty in MA is paramount. According to Deft Research, about 80% of MA enrollees choose to stay with their plan during the annual enrollment period when they have the option to switch, and just about 10% switch to another MA plan. That’s why we’re focused on proactive communication to engage with new members, such as welcome kits and surveys to get a pulse on member satisfaction. Further, having any type of provider affiliation can provide a huge lift in plan interest and retention.

As future potential members become even more tech-savvy and well-researched, it’s clear only the plans willing to adapt can compete. I’m delighted to lead Clover Health’s marketing team as we continue to grow our membership and help improve the health of America’s seniors.

To learn more about Clover Health go to www.cloverhealth.com.