Understanding Senior Preferences for Medicare Shopping: Insights for Agents and Brokers
Health insurance advisors across the nation pour their energies into being as effective and productive as possible during the Annual Enrollment Period for Medicare.
To provide effective support to Medicare shoppers, agents and brokers benefit from learning more about what matters most to seniors during their Medicare selection process. Convoso conducted a survey* of individuals aged 65 and over that reveals important insights into their preferences and buying behaviors when it comes to Medicare plans. This report synthesizes these findings and offers recommendations for agents and brokers on how to enhance their approach based on what seniors value most.
1. Building trust with policyholders
When considering what gives seniors confidence in the legitimacy of a health insurance advisor, the survey** revealed:
Checking information online (50%) and recognizable brand (48%) were the top factors.
Good reviews (36%) and agent license number (26%) were also significant trust indicators.
Recommendation: To build trust effectively, agents need to be proactive about their digital footprint. This includes having a professional website that clearly showcases their credentials, brand affiliations, and customer testimonials. Additionally, displaying their agent license number prominently on their website and marketing materials can further reassure prospects of their legitimacy.
2. Preferred sources for medicare shopping
When asked about which information sources they consider when shopping for Medicare Advantage or Medicare Supplement plans, respondents favored:
Current health insurance provider (45%): Nearly half of respondents rely on their current health insurer when shopping for Medicare plans. This indicates the value of continuity, suggesting that agents should emphasize their ability to provide seamless transitions or enhancements to current coverage. Highlighting familiarity can make policyholders feel more secure.
Online shopping (14%) and postal mailers (13%): Having a strong digital presence, along with informative and engaging mailers, can be a key way to connect with this audience. Agents should ensure that their websites and mailers are easy to understand, visually appealing, and address common concerns.
Recommendation: Agents should prioritize staying in touch with existing clients to discuss Medicare options and have a well-developed online and direct mail presence. Consider leveraging personalized content in both digital and direct mail formats to engage seniors in ways they prefer.
3. Enrollment preferences for medicare plans
Regarding recent and upcoming Medicare enrollments:
Original medicare with medicare supplements: 47% enrolled in this option in the past 12 months, but only 5% plan to do so in the next 12 months.
Medicare advantage (Part C): 42% enrolled in the past 12 months, with 5% planning to enroll in the coming year.
Many seniors have already made their initial Medicare plan choice and are now in the process of evaluating and potentially switching plans. In addition to cultivating new policyholders, agents should focus on retention strategies and help clients review their current plan annually to ensure it still fits their needs.
Recommendation: Highlighting additional benefits that might improve quality of care, or introducing options like Medicare Advantage plans that could provide more tailored services, can help retain customers or attract those considering a switch.
4. Key factors influencing plan choice
Respondents were also asked to rate the importance of various factors when choosing a Medicare plan:
Benefits (80% marked very important) and out-of-pocket costs (80% marked very important) are clearly the two biggest deciding factors. Seniors want comprehensive coverage without unexpected costs.
Doctor/hospital choice (74% very important) and prescriptions (72% very important) also ranked highly, indicating that access to preferred providers and coverage for necessary medications are critical.
The Medicare Star Rating System was less influential, with only 31% rating it as very important.
Recommendation: Agents should make it a priority to clearly explain the benefits of each plan, focusing on coverage, cost savings, and network options. Personalization matters here—showing a senior how a specific plan will let them keep their current doctor or save money on prescriptions can go a long way in building confidence and trust.
Conclusion: key takeaways for health insurance agents and brokers
The insights gained from this survey provide a clear direction for health insurance agents and brokers who want to improve their approach to Medicare shoppers:
Emphasize continuity: Seniors prefer working with their current health insurer, so agents should make this process as seamless as possible.
Focus on digital and direct mail channels: Invest in a professional and informative online presence and use direct mail to build connections. Cold-calling is not effective for this market.
Highlight benefits, costs, and doctor choice: When presenting plans, agents should prioritize explaining the specific benefits, cost savings, and whether preferred doctors are in-network.
Build trust through transparency: Ensure that potential clients can verify the legitimacy of agents through online information, recognizable affiliations, and clearly displayed licensing details.
By addressing these preferences and priorities, agents can establish themselves as trusted advisors and guide seniors through the complexities of Medicare with greater confidence and understanding.
* Survey included 500 US panel respondents aged 65 and over in September 2024.
** Survey for this specific question included 250 US panel respondents aged 65 and over in September 2024.