US Medicare Market Report 2024
Inflation's compression of consumer budgets has caused a prioritization of cost over choice of doctors when selecting coverage, driving consideration of switching.
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Executive Summary
- What you need to know
- Cost surpassed choice of doctors as the top factor in coverage selection
- Consumers with tight financial situations consider switches
- Graph 1: changes in Medicare coverage, by financial situation, 2023
- Research remains rare, but annual evaluation may drive win-back opportunities
- Graph 2: Medicare plan research and review, 2023
- Telehealth coverage is expected, but not yet as a primary option
- Graph 3: telehealth preference, by generation, 2023
- Market predictions
- Opportunities
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Consumer Insights
- Consumer fast facts
- Plan enrollment
- Medicare Advantage pulls even with Original Medicare
- Graph 4: Medicare plan enrollment, by year, 2013-23
- Medicare Advantage reached 57% of Part D coverage
- Graph 5: Medicare Part D plan enrollment, by year, 2013-23
- Medicare Advantage plans are more often selected by multicultural segments
- Graph 6: Medicare enrollment, by race, 2021
- Financially healthy consumers still favor Original Medicare
- Graph 7: Medicare plan enrollment, by household income, 2023
- Midwestern consumers are the most prominent users of Medicare Part D
- Graph 8: Medicare part D through Medicare Advantage enrollment, 2023
- Factors in selecting coverage
- Total cost is the most common top priority, while choice of doctors is a popular consideration
- Graph 9: most important factors in selecting Medicare coverage, 2023
- Compressed budgets drive cost to top factor
- Graph 10: #1 ranked factor in Medicare coverage selection, by year, 2022-23
- Women are more likely to look into choice of doctors
- Graph 11: top-three ranked factors in Medicare coverage, by gender, 2023
- High earners prioritize doctors, while lower earners look to providers
- Graph 12: top-three ranked factors in Medicare coverage, by financial situation, 2023
- Medicare users looking for extensive coverage look to original Medicare plans
- Graph 13: top-three ranked factors in Medicare coverage, by Medicare coverage, 2023
- Sources of Medicare information
- Medicare.gov remains the top source of Medicare info
- Graph 14: sources of Medicare information, 2023
- Men tend to consume more peripheral sources
- Graph 15: sources of Medicare information, by gender, 2023
- Medicare Advantage enrollees consult more sources before making a decision
- Graph 16: sources of Medicare information, by plan enrollment, 2023
- Coverage changes
- 6% of Medicare users look to change plans this year
- Graph 17: changes in Medicare coverage, 2023
- Medicare consumers increasingly look to tweak their plans
- Graph 18: changes in Medicare coverage, by year, 2022-23
- Pressing financial situations may mandate switching
- Graph 19: planned change in Medicare plan, by financial situation, 2023
- Enrollment behaviors
- Just 39% of Medicare users researched their plan before enrollment
- Graph 20: enrollment behaviors, 2023
- Nearly half of Medicare users evaluate each year
- Medicare Advantage enrollees are more active in research and review
- Graph 21: enrollment behaviors, by coverage type, 2023
- Medicare Advantage users will regularly evaluate coverage
- Attitudes toward healthcare
- Consumers are nervous about healthcare, and believe Medicare should cover all
- Graph 22: attitudes toward Medicare and healthcare, 2023
- Telehealth is quite popular, with nearly half of consumers preferring it
- Graph 23: attitudes toward telehealth, 2023
- Preventative care and technology are potential areas of improvement
- Graph 24: attitudes toward preventative care and health technology, 2023
- Younger generations feel financial impacts and strongly prefer Medicare for all
- Graph 25: attitudes toward cost of healthcare, by generation, 2023
- Two thirds of Millennials prefer telehealth to traditional healthcare
- Graph 26: preference toward telehealth, by generation, 2023
- Financially struggling consumers are less satisfied and desire expansion
- Graph 27: satisfaction with healthcare coverage, by financial situation, 2023
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Competitive Strategies
- Marketing and advertising
- Direct mail volumes rebounded closer to 2020-21 levels
- Graph 28: Medicare/Medicare Advantage monthly direct mail spend, by year, 2020-23
- Medigap and Medicare Part D marketing spiked in 2023
- Graph 29: cross-channel marketing spend, by Medicare plan type, 2020-23
- Humana's win-back direct mail touted both savings and extra benefits
- Medicare paid social marketing plummeted, while online video rose
- Graph 30: Medicare/Medicare Advantage marketing spend, by channel, 2019-24
- Online videos from Aetna mimicked a live chat experience
- Opportunities
- Win-back messaging can be especially effective due to re-evaluation
- Spruce up the Medicare education process
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The Market
- Market context
- Market drivers
- Inflation hovers above 3%
- Graph 31: Consumer Price Index, 2018-24
- Consumers approaching retirement have an eye on budgets
- Graph 32: budget monitoring due to inflation, by age, 2024
- Consumer confidence reached a nearly three-year high
- Graph 33: Consumer Sentiment Index, 2018-24
- Market size and forecast
- The Medicare-aged population is projected to grow in the medium-term
- Graph 34: share of 65+ population, by year, 2018-28
- An aging population increases the portion of 65-84 year-old Medicare users
- Graph 35: Medicare enrollment, by age, 2016-21
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Appendix
- Market definition
- Consumer research methodology
- Generations
- Abbreviations and terms
This report offers a comprehensive analysis of the Medicare market in the United States. With the strategic insights provided, your business can adapt to this competitive market landscape and enable future growth. Below, we’ve provided the core topics analyzed and handpicked insights from the full report.
Core Topics Analyzed
- Medicare enrollment trends and behaviors.
- Factors in selecting Medicare coverage.
- Sources of Medicare research.
- Plans to change Medicare coverage in 2024.
- Consumer attitudes toward healthcare.
Medicare Market Overview
The Medicare market is experiencing significant shifts influenced by economic factors and consumer behavior. Inflation, which remains above 3%, is impacting consumer budgets, leading to a heightened focus on the cost of Medicare plans over other factors such as the choice of doctors. This has resulted in increased interest in Medicare Advantage plans, which offer price advantages and are closing the gap with Original Medicare enrollment.
Medicare User Insights
Annual Review and Plan Switching
Over half of Medicare Advantage users actively review their Medicare coverage annually to evaluate the need for changes. This trend toward regular evaluation and the potential for plan switching is influenced by the growing enrollment in Medicare Advantage plans and heightened budget sensitivity, particularly among the aging population.
Research and Information Sources
Despite the increased price sensitivity, only 39% of Medicare users conduct research before enrolling in a plan. Medicare.gov remains the top source of information for many users. However, Medicare Advantage enrollees tend to consult a wider range of sources, including direct mail, email, family, friends, and online searches, to make informed decisions.
Medicare Market Opportunity
Since more Medicare users evaluate their coverage for potential changes each year than research Medicare upon initial enrollment, there is a clear opportunity for Medicare Advantage (MA) providers to accelerate growth by simply increasing consideration among these users. Providers can take advantage of the fact that first-time enrollees often lack the foresight to weigh multiple coverage options, and by promoting research and education, they can potentially attract more customers to their MA plans.
Buy the full report for a comprehensive review of trends and opportunities in the Medicare industry. You may also want to browse our healthcare market research.
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Expert Analysis
Leading analyst Patrick Rahlfs delivers expert insights with this in-depth report.
Inflation’s compression of consumer budgets has caused a prioritization of cost over choice of doctors when selecting coverage, driving consideration of switching.
Patrick Rahlfs
Senior Research Analyst
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