Medicare Advantage plans are tasked with educating members about significant changes coming to the program in 2025. They also have to find a way to break through the noise of an election year.
Two changes in Part D benefits laid out in the Inflation Reduction Act take effect in 2025 — a $2,000 out-of-pocket maximum, and an option to spread out-of-pocket costs into even payments over an entire year.
Kortney Cruz, senior vice president of government markets at Independence Blue Cross, told Becker's these changes will ultimately benefit seniors.
"However, it is also forcing carriers to rethink how they approach Part D, which is going to cause a lot of noise. At the end of the day, education is going to be critical," Ms. Cruz said. "We're at that central point where education is critical, during a time when our share of voice is diminished because of the election."
Independence Blue Cross is based in Philadelphia. In Pennsylvania, a key battleground state, the airwaves are inundated with political advertising.
Medicare Advantage open enrollment runs from Oct. 15 to Dec. 7.
The Harris and Trump campaigns have reserved a combined $141.8 million in television ad dollars in the state between Sept. 6 and Nov. 5, the most of any battleground state, according to AdImpact Politics.
"It's going to be very difficult to break through the clutter and make sure seniors understand how their plans are shifting, evolving and changing," Ms. Cruz said.
To cut through the noise, Independence Blue Cross is leaning on multiple channels, Ms. Cruz said, especially grassroots outreach. In addition to maintaining a large digital presence, the the insurer is rolling out in-person outreach through grocery stores.
"We know it's not going to be enough to rely on the typical communication channels," she said.
Angela Perri, vice president and chief Medicare officer at UPMC Health Plan, said there is "always a level of angst" around significant policy changes in Medicare Advantage. Older adults may also worry about how the election will affect them, Ms. Perri told Becker's.
"The anxiety is always higher in years like this one, where there's such a significant change from a regulation and policy perspective, combined with the political scenario," Ms. Perri said.
In addition to Inflation Reduction Act changes, Medicare Advantage plans are responding to rising medical costs and lower reimbursements from CMS.
Several national insurers, including CVS Health and Humana are planning market exits and have hinted that benefits will be scaled back in 2025.
In a year of upheaval, stability is key, Ms. Perri said.
"We don't drive dramatic changes in our benefit design, because that's very disruptive to the membership," she said. "Those are things that this AEP we're very excited about, because while there's volatility pretty much everywhere, our plans will be very stable and consistent."
Independence Blue Cross is also prioritizing stability amid election anxieties and the shifting Medicare Advantage market, Ms. Cruz said.
"We do believe stability is so important. If you have too many changes all at once, seniors get confused, they miss something," she said. "We've tried to really be thoughtful about where we're making improvements, where we're making adjustments, but most importantly, how we're educating our seniors when it comes to the Inflation Reduction Act."