The $40B HealthCare Opportunity Around Retention

It’s obvious to anyone close to it, but harder to align the goals to take advantage of it.  With people “aging-out” from group plans to Medicare and people leaving their employer coverage to go to the individual market, managed care has a huge opportunity to retain that business by providing them a transition path.  According to McKinsey (and from what we see), that’s generally not happening.

A few facts from their report:

  • 68 percent of all members aged 60 to 64 have never been approached by their current insurers to discuss retirement options.
  • more than 80 percent of respondents aged 60 to 64 said they would consider purchasing an individual product from their current carrier if they left their jobs or retired.
  • Only 33 percent of 60- to 64-year-olds thought that their insurers offered Medicare products, for example, when in fact almost all major carriers do.

It’s also a simple economic problem.  They are less expensive to retain and convert while their a member than once they are on the open market.  You may even save on broker fees.  Developing a data driven approach to create timely and personalized communications along with a service to transition them should be a priority.

mckinsey-conversion-opp

One Response to “The $40B HealthCare Opportunity Around Retention”

  1. Whoa! This is big and so much in alignment with where the industry will eventually go. No matter what the future of our healthcare system reform looks like,keeping your current customers engaged from care giver to insurer, is a strategy that will yield long-term rewards.

    Thanks for the info!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: