ST. LOUIS — Insurers closed the books, Thursday, on another Medicare enrollment period — the annual, federally-designated window when Americans 65 and older can make changes to their health plans.
If the trend of the past 15 years continues, when this year’s numbers are analyzed they will show that even more seniors are opting into Medicare Advantage plans, the private insurance alternative to traditional Medicare.
Insurers in the region are competing for market share, adding coverage for new products like gym memberships into health plans, and reimbursements for hiking boots and tennis rackets. They’re changing marketing tactics, and paying close attention to changes in behavior among people who are just aging into eligibility.
“Medicare Advantage is a very competitive market,” said Rich Sloma, chief Medicare officer for Aetna’s Central Region. “We’re all vying for growth, and continuing to update our product offerings and benefits.”
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For more than a decade, the U.S. has seen rapid increases in enrollment in Medicare Advantage plans. That trend hasn’t come without scrutiny: Medicare Advantage plans often require authorization of medical services or prescriptions before they will be covered, and the U.S. Centers for Medicare and Medicaid Services recently tightened restrictions on how these plans can be marketed, following complaints from legislators and industry groups.
Still, for the first time this year half of all eligible Medicare beneficiaries were enrolled in Medicare Advantage plans, or 30.2 million people, according to a released in May. That is up from 2007, when fewer than one in five were.
At the same time, the country is experiencing a demographic shift as the population leans older and the baby boomer generation — between 59 and 77 years old now — continues to age into Medicare.
“That’s what’s been driving the whole Medicare Advantage business,” said Barry Streit, senior vice president of growth at Essence. That company sells Medicare Advantage plans primarily in the Ƶ area, and is affiliated with Maryland Heights-based Lumeris.
“We are having the best annual enrollment period we’ve had in years,” Streit said last week.
Aetna, this year, added benefits to plans in Missouri that offer reimbursements for certain items that help with maintaining a healthy lifestyle, like hiking boots, running shoes and tennis rackets, Sloma said.
Essence, Streit said, is adapting to the changing preferences of 65-year-olds. Younger members of the baby-boom generation, he said, behave more like members of Generation X. They tend to be more tech-savvy, and less interested in face-to-face meetings and house calls. They are drawn by perks like gym memberships and fitness programs like “SilverSneakers,” and less interested in traditional offerings like hearing aids and rides to medical appointments.
“So much of the industry today — it was built for our parents,” Streit said. “We have to make sure that we are wherever the consumer is looking for us. We have to continue to evolve.”
The Biden administration is moving forward with policies that may end up reducing federal payments for many Medicare Advantage plans beginning next year. And though the federal government relaxed the way it calculated Medicare Advantage quality ratings during the COVID-19 pandemic, many insurers saw scores dip this year, which affects their payments.
For now, Sloma said, Aetna is seeing “good growth” in Missouri — and a lot of competition, which pushes carriers to update their offerings and work harder to please consumers.
“I still think there’s plenty of room for continued growth,” Sloma said.