This presentation focused on how states and providers of Medicaid programs can establish a strong brand positioning and integrated marketing program prior to the implementation of the 2014 Medicaid expansion that will take place as a result of the Affordable Care Act (ACA).
23. Do you Have the Right Marketing Mix to Reach the New Members?
24.
25. Current Member Lifestyles W18-34, Single, HHI <$10k, 1 or more kids W18-34, Single, HHI <$50k, 1 or more kids Painting/Drawing Going to Movies Playing Bingo Playing Backgammon Playing Computer Games Going to Bars/Night Clubs Roller Skating Going Dancing Karaoke Playing Bingo Scrapbooking Kick Boxing Roller Skating
26.
27. New Member Lifestyles Source: MRI Doublebase M18-34, Single, Some College / Bachelors, HHI <$30k M35-49, Single, Some College / Bachelors, HHI <$30k A18-34, Married/Kids, Some College / Bachelors, HHI <$60k A35-49, Some College / Bachelors, HHI <$60k Go to Movies Go to Movies Go to Movies Go to Movies Play Video Games (consoles) Play Video Games (consoles) Play Video Games (consoles) Play Video Games (consoles) Attend Rock Concert Go to Art Galleries Play Billiards Play Board Games Go to Bars/Night Clubs Attend Rock Concerts Play Board Games Hunting Play Chess Play Chess Play Chess Play Chess Fantasy Sports Leagues Play Billiards Fantasy Sports Leagues Involved in Church Activities Karaoke Lift Weights Visit Zoo Visit Zoo Karate Karaoke Picnicing Play Basketball, Baseball, Football, Lacrosse, Soccer, Frisbee Scrapbooking Roller Skating Hunting Picnicing Watch Sports on TV Roller Skating
Good Morning: We are thrilled to be here today to talk about how Medicaid plans can be getting ready now to prepare for the onslaught of new members beginning in 2014. We are especially excited to be here – in Sunny Orlando – as opposed to icy Washington, D.C. for those of you who attended last year’s Forum.
As you are all well aware, there are a tremendous amount of changes taking place as part of the implementation of ACA some of which should be resolved this year, others of which will take years – possibly even beyond 2014 – to sort out. We are going to focus our comments today on the marketing and branding implications of the ACA implementation. The things that individual Medicaid plans can and should be doing right now to get ready for the coming onslaught of new members beginning in 2014.
We have read through many of the reports and forecasts that various organizations, including CMS, are releasing in which they attempt to estimate the number of prospective new Medicaid members beginning in 2014. The estimates are all over the map as you can see here? They range anywhere from a low of 8.5 million new members to a high of 22.8 million. Quite a range. The federal government has pretty consistently used the 16 million member number…But only time will tell. I know from an operational standpoint, these numbers are keeping most of you up at night…but from a marketing and branding perspective, the number is less important to us than who the new prospective Medicaid member is as a person. The most important thing for us is figuring out who they are, what they like to do, how they consume media and what are best, most cost effective and efficient ways to deliver your messages to them.
Ok, so who are the prospective new members we need to reach? From a marketing perspective, one of the first things we do is look at them from an income standpoint, which is prudent since that is how their eligibility is determined. ACA mandates an eligibility floor of 133% of the Federal Poverty Level. Like most things about this new law, the numbers are all over the map. There is a salary adjustment provision of 5% that could take the number to 138% FPL. Additionally, the Maintenance of Existing benefits (MOE) provision mandates that states maintain their current level of coverage for a specified period of time, even if it is “richer” than the new federal requirement. In fact there are currently 26 states that provide Medicaid coverage to families with children at or above the 250% FPL level and 18 states that provide it at or above 300%. So that takes the possible income range from $24,644 for 133% FPL to $55,590 for 300% FPL for a family of 3 in 2011. That’s quite a spread that increases the type of member you will be targeting pretty significantly – it effectively takes us from providing Medicaid coverage for the very poor to covering members that are in the lower-middle to middle class in our communities.
So who are these new Medicaid members? They could be any one of these people. They could be newly unemployed. Or self employed and struggling to make ends meet. They could make anywhere from a few thousand dollars a year to $55,000. They could be relatively healthy young men, with college degrees and no health insurance. They could have applied for Medicaid before and been turned down for one reason or another or they may never have considered Medicaid an option before…
You will need to market to a much broader target audience than before in order to attract these new members. But you must keep in mind that you can’t totally abandon the “original” Medicaid members, the members you currently serve while you go after the new target audiences. It will be critical to strike a balance between marketing to the current Medicaid beneficiaries and to the newly eligible members in 2014.
The next question you need to ask yourself is “Do you have the right marketing mix to reach the new members?”
Here are 2 examples of Media Usage Habit Research for 2 Medicaid Plans that GKV currently works with – 1 in Maryland and 1 in Virginia. As you can see, our current target audience in both cases is made up largely of single women 18-34 years old with at least 1 child in the household. The only real difference between these two target audiences – other than geographic region – is the income. Once we have this data, we need to marry the results with the reality of marketing budgets. As you see here in Baltimore and Washington, our target audience is a heavy user of TV which in many cases could be cost prohibitive for Medicaid plans based on marketing budgets. We use this research helps us develop a strategy focused on the most effective way to reach the target audience. But now with the target audience getting much broader, we need new information.
All that being said, How do you find the right agency partner to help position your brand and plan to make the most of this historic opportunity? [GO THROUGH EACH BULLET]