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Home / News & IndustryManaged Care Insight and Analysis
Updated: August 18, 2009
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,

  This article was taken from:
The Executive Report on Managed Care

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