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Lowering Health Insurance Member Disenrollment Can Generate Up To $100 Million In Incremental Revenue For Health Plans
Date:2/11/2009

New Research Demonstrates That Small Gains in Member Retention Yield Substantial Financial Return

Orlando, FL (Vocus) February 11, 2009 -- Market research conducted on behalf of ConnextionsHealth 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%, and of new members by only 10% 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,
  • 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.

Details on this new research, as well as other valuable market insight on the subject of member retention will be presented at the World Congr
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Source: PRWeb
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Lowering Health Insurance Member Disenrollment Can Generate Up To $100 Million In Incremental Revenue For Health Plans
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