Drivers Of Health Plan Retention

Open enrollment marketing campaigns are in full swing, but many HMOs may be surprised to find that cost is not a major reason health plan members voluntarily switch from one plan to another. Customer relationships and problem resolution are more influential than cost in choosing health plans, according to results of a national disenrollment study funded by the Bayer Corp. and conducted by the HSM Group.

Voluntary disenrollment is a huge issue for health plans, costing them millions of dollars a year.

The research shows that three factors consistently influence disenrollment and health plan retention:

  • primary care physician attitude toward patients;
  • outcomes of specialty care; and
  • member service problem-solving capabilities.

Health plan marketers need to better scrutinize the way they communicate with members, payers and providers. A heightened focus on provider communications with patients is also key, according to the study. Additional health plan retention strategies are outlined in the study, "Understanding the Cause of Disenrollment," which is available on HSM Group's Web site at www.hsmgroup.com.

(HSMGroup, Maggie Bruce, 480/947-8078, ext. 309)