Trust and the ability to resolve problems or complaints are the biggest factors that influence retention in Medicare Advantage plans, according to the J.D. Power 2023 U.S. Medicare Advantage Study.
The findings are based on the responses of 5,887 members of Medicare Advantage plans in California, Florida, New York, Pennsylvania, and Texas. The annual survey was conducted January through June 2023 and measures member satisfaction based on eight factors: level of trust; able to get health services how/when I want; helping to save me time or money; product/coverage offerings meet my needs; ease of doing business; people—representatives, call center agents; resolving problems or complaints; and digital channels.
The study found:
- Overall, members are satisfied with their plans: Customer satisfaction with Medicare Advantage plans is 652 (on a 1,000-point scale). Plans perform highest on trust, ease of doing business, and meeting member product/coverage needs.
- Trust and problem resolution hold keys to customer loyalty: Level of trust and resolving problems or complaints are the most highly correlated factors associated with members renewing their health plan. Satisfaction with trust increases 353 points among those likely to renew with their health plan compared with those who are unlikely to renew. Similarly, satisfaction with problem resolution increases 351 points among those likely to renew.
- Ease of finding care and digital tools now biggest pain points: Thirty-one percent of Medicare Advantage plan members say their plan made it easy for them to find care and just 34 percent say they used two or more digital tools offered by their plan. Overall customer satisfaction scores are 158 points higher, on average, when members say it is easy to find care and 62 points higher, on average, when members use two or more digital tools.
- Health plan ratings and customer reviews spur customer satisfaction: The most effective sources of information about Medicare Advantage plans are health plan ratings, information received directly from the plan itself, and recommendations from friends, relatives, and co-workers.