Visit our
Medicare Majors Earnings Transcript Chat
The Medicare Advantage (MA) industry has shown notable trends in retention and Lifetime Value (LTV), as indicated by the recent earnings call transcripts of various companies within the sector. These trends provide insights into the performance and strategic adjustments companies are making in response to the evolving healthcare landscape.
eHealth reported a significant year-over-year growth in Medicare Advantage approved members and an 11% increase in MA LTVs during the fourth quarter of 2023. This increase in LTV is primarily attributed to improved retention on the AEP cohort enrolled in Q4 of 2022, favorable carrier mix, and contract mix. Positive persistency dynamics on their existing book of business, along with strong cash collections, also drove positive tail revenue during the quarter.
SelectQuote observed a 7% increase in LTV to $934 per policy, emphasizing stable policyholder persistency. They credit their performance to a strategy focused on tenured agents and the introduction of latest agent desktop tools, which enhance efficiency, plan fit, and value to policyholders and carrier partners. This underscores a solid foundation for more stable and improving LTVs in the long term.
Centene did not specifically mention LTV or retention rates in their Medicare Advantage segment but discussed the overall performance and strategic focus. They mentioned that the annual enrollment period played out as expected and highlighted their focus on members to whom they can provide long-term value, particularly D-SNP members, who are expected to represent more than 35% of their Medicare Advantage membership by year-end.
Elevance Health discussed their investment in Medicare, focusing on building a strong foundation for sustainable long-term growth. They acknowledged hyper-competitive pockets of the Medicare Advantage market but remain confident in the assumptions underlying their bids for 2024. They have implemented a comprehensive, personalized customer service model for Medicare, "My Health Advocate," aiming to improve member experiences and navigate the healthcare system and plan benefits more easily.
The reports from these companies indicate a positive trend in the Medicare Advantage industry, with improved retention and increased LTVs being common themes. Companies are investing in technology, customer service, and targeted strategies to enhance policyholder persistency and value. The emphasis on quality over quantity, particularly through focusing on tenured agents and personalized customer service, appears to be a successful strategy for improving LTV and retention in the Medicare Advantage space.
