US Medicare Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Medicare decisions vary by income
  • Figure 1: Medicare coverage by income, 2022
• Enrollees are shifting toward personal sources
  • Figure 2: Sources of Medicare information by year, 2020 and 2022
• Consumers reassess the future of Medicare
  • Figure 3: Forward-looking attitudes toward healthcare by year, 2020 and 2022
• Market overview
  • Figure 4: Category outlook, 2022-27
• Opportunities and challenges
• Adoption of telehealth drives accessible coverage
• Education remains a barrier for enrollment
• Key consumer insights
• Choice of doctors is key
  • Figure 5: Factors in coverage selection, 2022
• Medicare recipients are more satisfied than general population
  • Figure 6: Healthcare satisfaction by Medicare enrollment status, 2022

Market Size

• Medicare-age population is increasing rapidly
  • Figure 7: US population by age, 2016, 2021, 2026
• Medicare Advantage is gaining enrollees at the expense of traditional Medicare
  • Figure 8: Year to Year Increase in Medicare Enrollment by Plan Type, 2015-2020

Market Factors

• Medicare marketing activity spikes in November
  • Figure 9: Medicare/Medicare Advantage Marketing Spend, April 2019-March 2022
• Medicare Part D marketing spend has doubled in the past two years
  • Figure 10: Medicare Prescription Drug Plan Marketing Spend, Q1 2019-Q1 2022
  • Figure 11: Share of Medicare recipients with prescription drug coverage, 2017-21
• Telehealth visits surged post-pandemic
  • Figure 12: Two-Year telehealth visit trend, March 2019-February 2021
  • Figure 13: Change in Medicare FFS Part B Visits from 2019 to 2020 by Visit Specialty

Companies and Brands

• Aetna sends formal invitations to learn about Medicare
  • Figure 14: Aetna Medicare Invitation Direct Mail piece, 2021
• Cigna uses free gifts to attract phone calls
  • Figure 15: Cigna Medicare Advantage Direct Mail piece, 2021
• USAA turns to paid social
  • Figure 16: USAA Medicare Paid Facebook Ad, 2021

Competitive Strategies and Market Opportunities

• Medicare Supplement Insurance revolves around choice and freedom
  • Figure 17: UnitedHealthcare Medicare Supplement Direct Mail Piece, 2021
• Checklists can guide customers post-enrollment
  • Figure 18: Blue Cross and Blue Shield of Illinois Direct Mail Checklist, 2022
• Telehealth coverage assumes the spotlight
  • Figure 19: Humana Medicare Television Ad, 2021

The Medicare Consumer – Fast Facts

Types of Healthcare Coverage

• 9 in 10 seniors are on Medicare
  • Figure 20: Healthcare coverage by age, 2022
• Higher-income consumers tend toward original Medicare
  • Figure 21: Medicare coverage by income, 2022

Factors in Selecting Coverage

• Choice of doctors outweighs total cost as the top coverage consideration
  • Figure 22: Factors in coverage selection, 2022
• Higher-income Medicare beneficiaries prioritize extent of coverage
  • Figure 23: Factors in coverage selection by income, 2022
• Under-65 Medicare beneficiaries seek coverage of their particular condition
  • Figure 24: Factors in coverage selection by age, 2022

Sources of Medicare Information

• Medicare.gov is consumers’ top educational source
  • Figure 25: Sources of Medicare information, 2022
• Personal sources are growing compared to legacy sources
  • Figure 26: Sources of Medicare information by year, 2020 and 2022

Coverage Changes

• Coverage changes are uncommon, but skew younger
  • Figure 27: Changes in Medicare coverage by age, 2022

Enrollment Behaviors

• 65+ recipients are more likely to do their own research
  • Figure 28: Medicare enrollment behaviors by age, 2022
• Nearly 40% of Medicare recipients do not research or review coverage
  • Figure 29: Medicare research behaviors, 2022
• Initial enrollment decision is key for higher income recipients
  • Figure 30: Medicare enrollment behaviors by income, 2022

Attitudes toward Healthcare

• Younger consumers are experienced and open to telehealth
  • Figure 31: Teleheath attitudes by generation, 2022
• Preventative care is a sought-after area of improvement for healthcare
  • Figure 32: Forward-looking attitudes toward healthcare, 2022
• Consumers are less optimistic about the future of Medicare
  • Figure 33: Forward-looking attitudes toward healthcare by year, 2020 and 2022
• Medicare recipients are more satisfied with healthcare than the general population
  • Figure 34: Healthcare satisfaction by Medicare enrollment status, 2022
• Millennials and Gen Xers are highly receptive to technology
  • Figure 35: Attitudes toward wearable technology by generation, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Consumer survey data
• Marketing creative
• Abbreviations and terms
• Abbreviations