Medicare AEP Half-Time Report: eHealth Offers Snapshot of Average Premiums, Plan Selection Trends, and Consumer Sentiments

Rhea-AI Summary

On November 18, 2020, eHealth, Inc. (NASDAQ: EHTH) released a snapshot report on Medicare enrollment trends amid the ongoing Annual Enrollment Period (AEP) from October 15 to December 7, 2020. The report highlights that 75% of Medicare beneficiaries review their plan options annually, with out-of-pocket costs being the primary consideration for 29% of respondents. Average premiums remain stable, with Medicare Advantage plans averaging $5 and Part D plans at $20. Additionally, $0 premium Medicare Advantage plans gained popularity, comprising 86% of selections, up from 83% the previous year.

Positive

• Stable average premiums for Medicare Advantage plans ($5), Part D plans ($20), and only $3 increase for Supplement plans ($160).
• $0 premium Medicare Advantage plans increased to 86% of selections, indicating strong consumer preference.

Negative

• None.

SANTA CLARA, Calif., Nov. 18, 2020 /PRNewswire/ -- Today eHealth, Inc. (NASDAQ: EHTH) (eHealth.com) released a snapshot report on Medicare beneficiaries midway through open enrollment season. Medicare's Annual Enrollment Period (AEP) for 2021 coverage began October 15 and is scheduled to continue through December 7, 2020.

eHealth's report examines plan selection trends and average premiums among Medicare beneficiaries shopping at eHealth between October 15 and November 8, 2020. It also includes key findings from a survey of more than 2,100 Medicare beneficiaries conducted in late October.

Key findings from the report:

• Most beneficiaries review their Medicare plan options annually: 75% say they review their Medicare coverage options once per year; 27% say their personal finances or medical needs have changed since they signed up for their current Medicare plan.
• Out-of-pocket costs top the list of considerations when picking a Medicare plan: 29% say finding a plan with affordable out-of-pocket costs is most important, while 27% say affordable premiums are most important, and 26% cite coverage for their preferred doctors and hospitals.
• Medicare plan premiums are stable this year: Average premiums for plans selected by beneficiaries in the first half of AEP are unchanged this year compared to last for Medicare Advantage plans ($5) and stand-alone Medicare Part D prescription drug plans ($20), and only $3 higher this year for Medicare Supplement plans ($160).
• The popularity of $0 premium Medicare Advantage plans continues to grow: In the first half of AEP, $0 premium plans accounted for 86% of all Medicare Advantage plans selected by eHealth customers, compared to 83% in the same period the year before.

Read the full report.

Survey findings presented in eHealth's report are based on a voluntary survey of Medicare beneficiaries who purchased Medicare health insurance products from eHealth. The survey was conducted between October 23 and 26, 2020, and a total of 2,176 responses were collected. Cost and trend findings are based solely on submitted applications for Medicare Advantage, stand-alone Medicare Part D prescription drug plans, and Medicare Supplement plans received by eHealth between October 15 and November 8, 2020, with comparisons to approximately the same period from prior years.

About eHealth
eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 180 health insurance carriers across fifty states and the District of Columbia.

Media inquiries:

Lara Sasken
Vice President, Corporate Communications
lara.sasken@ehealth.com

 

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SOURCE eHealth, Inc.

FAQ

What does eHealth's recent report reveal about Medicare enrollment trends?

eHealth's report reveals that 75% of beneficiaries review their plans annually, with stable premiums and a growing preference for $0 premium Medicare Advantage plans.

When is the Medicare Annual Enrollment Period for 2021?

The Medicare Annual Enrollment Period for 2021 runs from October 15 to December 7, 2020.

What are the average premiums for Medicare plans according to eHealth's report?

According to eHealth's report, average premiums are stable: $5 for Medicare Advantage, $20 for Part D, and $160 for Supplement plans.

How many Medicare beneficiaries participated in eHealth's survey?

Over 2,100 Medicare beneficiaries participated in eHealth's survey conducted in late October 2020.

What factors do Medicare beneficiaries consider when choosing their plans?

Medicare beneficiaries prioritize out-of-pocket costs (29%), affordable premiums (27%), and access to preferred doctors and hospitals (26%) when selecting plans.