| Lowering
Health Insurance Member Disenrollment Can Generate Incremental Revenue
Market research conducted on behalf of
ConnexionsHealth has demonstrated that health insurance plans can
significantly improve revenue generation by establishing initiatives
that specifically address member disenrollment.
A host of economic factors are currently driving
unprecedented membership losses at most health insurance plans.
Results of a proprietary study conducted by a
leading management consulting firm show that a "typical" health plan
with 50,000 individual plan members and $600-$650 million in annual
revenue can generate approximately $100 million in incremental revenue,
as a result of lowering disenrollment rates.
These results were achieved by lowering their
disenrollment rate of existing members by only 5 percent, and of new
members by only 10 percent over a two-year period.
In the research study, health plans that achieved
those levels of improvement in their disenrollment rates all applied
differentiated member retention initiatives with similar
characteristics, including:
- analysis of issues that arise during different
stages of a member’s tenure;
- tailored response to specific member segments,
by geography;
- product, age, etc.;
- identification of issues likely to generate a
disenrollment event; and
- incorporation of individual member preferences,
with respect to method, frequency and choice, and ongoing collection of
key member data as the foundation of pro-active and re-active tactics
designed to address disenrollment.
Address: Connextions Inc., 3600 eCommerce Pl.,
Orlando, FL 32808; (877) 772-6868, www.connextionshealth.com.
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