Customer Experience Key Differentiator for Medicare Advantage Plans, J.D. Power Study Finds

Managed Care Weekly Digest

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- Medicare Advantage is a competitive product because people have choices in which plan they select, and members frequently choose a plan they understand and perceive to be easy to work with. While providers are making some progress in becoming more customer-centric, for most there still is room for improvement, according to the J.D. Power 2016 Medicare Advantage Study,(SM) released (see also J.D. Power).

http://photos.prnewswire.com/prnvar/20130605/LA26502LOGO

Overall satisfaction among Medicare Advantage members improves to 790 on a 1,000-point scale in 2016 from 774 in 2015. Additionally, satisfaction with customer service, one of six factors comprising overall satisfaction, increases by 12 points from last year.

"Health plans are more likely to achieve high satisfaction scores when they serve members from the medical provider's perspective, such as the time spent with the patient, providing strong communications, developing relationships, and offering coaching regarding how to work with the plan," said Valerie Monet, director of the insurance practice at J.D. Power. "A consistent product message and brand experience as well as control over the delivery of care are all drivers of satisfaction with Medicare Advantage plans--all areas in which Kaiser Permanente excels."

Medicare Advantage enrollment continues to grow and now covers 31% of individuals eligible for Medicare--nearly 18 million of the 57 million Medicare lives across the United States(1). One of the greatest opportunities for health plans to improve Medicare Advantage member satisfaction is in communications with both new enrollees and longer tenured members of their plan. Information and communication is the only factor in the study in which satisfaction doesn't improve significantly--up by a nominal 5 points year over year.

"Many plans have a multitude of product design features and provide technical manuals of 20 pages or more," said Monet. "Expecting members to become experts across the broad range of services and benefits offered is ultimately a losing battle for both the plan and the member."

Monet noted that information and communication is particularly critical for members in terms of helping them know which product features they need while they are selecting a plan and in helping them interpret which benefits and services are covered by the plan they choose. "Members are looking for their plan to be a trusted partner, and that begins at enrollment," Monet said. "They are expecting their plan to provide guidance, ranging from assistance in selecting a doctor to helping them understand costs for prescriptions."

Keywords for this news article include: Medicare, J.D. Power, Health Policy.