When Competitors Exit the Market: A Medicare Marketing Playbook
The Medicare market is no stranger to disruption. The shake-ups over the past year have reminded us of the importance of planning ahead for possible shifts, like when a competitor exits the market. It’s valuable for payers to develop a playbook for this scenario ahead of the Annual Enrollment Period (AEP). After all, these departures can create a valuable window for health plans to attract disenfranchised members who are seeking new coverage options. Early preparation is especially important because these opportunities often arise with limited notice, leaving health plans scrambling to respond.
To turn Medicare competitor market exits into growth opportunities, health plans need to prioritize early detection, flexible media strategies and ready-to-go creative assets. Here’s how to make the most of these moments.
Step 1: Early Disruption Detection
Your Sales Team, through brokers and agents, is often the first to hear about market exits. Use their frontline insights to stay ahead of the curve:
- Proactive monitoring: Encourage brokers and agents to regularly report any hints of competitor departures, such as reduced benefits or sudden policy changes.
- Streamlined communication: Establish a system for the Sales Team to relay information quickly to marketing, enabling faster campaign activation.
- Competitor analysis: Track competitor activity regularly to identify patterns or potential exits before they occur.
Step 2: Flexible Media Planning
Not all media channels allow for rapid deployment. Focus on options that can be purchased and launched quickly while targeting specific audiences and geographies:
- Direct mail: Effective for county-level targeting and detailed messaging, ensuring members in affected areas receive timely information.
- Paid social: Offers granular targeting and can be adjusted quickly to capitalize on emerging opportunities.
- Email campaigns: A cost-effective choice for timely and personalized outreach to disenfranchised members.
- Print ads: Best for local markets with high newspaper readership, especially in areas with older demographics.
- CTV/OTT and streaming radio: Though costlier, these can amplify awareness and drive broader reach when targeting a large audience.
Step 3: Pre-Planning Creative Assets
Preparation is key to responding to competitor exits effectively:
- Bracket copy: Develop creative templates with placeholders for critical details, allowing rapid customization once specifics are known.
- CMS-compliant messaging: Ensure all references to competitor brand names remain factual and non-comparative. Instead of direct comparisons, focus on highlighting your own plan’s benefits in a way that is neutral and non-disparaging. For example, messaging could state, “See how our plan benefits support your healthcare needs,” or could highlight your strengths, like improved coverage or superior customer services. Always verify statements for accuracy and CMS compliance to prevent delays.
- Necessary disclaimers: Plan availability, benefits and provider networks may vary by service area. Health plans must ensure that all marketing materials comply with CMS guidelines, including required disclaimers and factual, non-misleading content.
- Visual consistency: Ensure creative assets maintain consistent branding to quickly
Step 4: Precise Activation
When a competitor’s exit is confirmed, execute your pre-planned strategy with precision:
- Rapid deployment: Activate pre-approved media templates immediately, ensuring campaigns are in-market without delay.
- Sales team alignment: Provide clear messaging and background information to help the Sales Team handle calls effectively and address specific member concerns. Reps should be trained to provide factual information without making claims that could be seen as pressuring or misleading members. All communications should focus on helping Medicare beneficiaries make informed decisions based on their healthcare needs.
- Real-time adjustments: Use analytics to monitor campaign performance and adjust messaging or targeting as needed.
Medicare competitor market exits are moments of opportunity for prepared health plans. By aligning with your Sales Team, leveraging nimble media channels and pre-planning creative assets, you can turn disruptions into a competitive advantage. The key is preparation—anticipate the unexpected and stay ready to act when opportunity knocks. With the right strategies in place, you can capture market share and support Medicare members seeking better options.
Got questions about taking advantage of market disruptions, like when a Medicare competitor exits the market? Reach out to Media Logic today.
