5 Reasons Why ACA Acquisitions Falter

Hispanics and African Americans represent half of the remaining exchange eligibles but continue to lag significantly behind the enrollment rate of the White Non-Hispanics — with Hispanics 37 percent below and African Americans 16 below where they should be. Five major barriers still stand in front of health insurers: (1) Lack of Trust in the Government, (2) Poor Value, (3) Ineffective Messaging, (4) Poor Cultural & Language Relevancy, and (5) Lackluster Customer Experience. These barriers will add critical pressure to getting engagement, acquisitions and retention going effectively in the 3rd Open Enrollment round.

Multicultural segments continue to lag significantly behind the enrollment rate of the White Non-Hispanic segment, less than 100 days away from the third Open Enrollment period despite so much additional effort put behind Hispanic, African American and Millennial efforts. What can we as Marketers learn from this?

A deep analysis into each segment reveals a much more concerning reality. Hispanics are trailing much further behind than any other group despite all the additional resources that went specifically behind that group in the last open enrollment. While Hispanics make about 15 percent of those enrolled, they are about a quarter of those eligible, net of undocumented in FPL 139-400 —an index of only 63, that is equivalent to 37 percent below where the segment should be given its proportion of exchange eligibles. Similarly, the African American segment shows an index of 84 or 16 below where it should be. It is the Asian/Other segment that skews the Multicultural trends with an index of 241 or 141% above where it should be given that it only represents 5 percent of eligibles versus 11 percent of those enrolled so far.

On the eve of the third open enrollment period, the national trends clearly suggest that there are major barriers still standing in front of Hispanic and African American eligibles. There appear to be five major factors at play:

5Reasons TableAt the end of the day, half of the remaining exchange eligibles in these states are Multicultural and 1 in 3 of the overall remaining eligibles (net of undocumented) are Hispanic. This source of growth will add critical pressure to getting multicultural engagement, acquisitions and retention properly focused on the needs of this vast potential.

About SSG: SSG guides clients to identify the highest ROI opportunities, simplify business decision-making through advanced analytics & insights, and craft effective marketing strategies that advance sustainable total growth fueled by Millennial, Multicultural & Hispanic segments.

Sources: SSG analysis of the Department of Health and Human Services reported enrollment in Federal Facilitated States from Nov 15, 2014 until Feb 22, 2015 special enrollment extension, the Family Kaiser Foundation, Estimated Number of Potential 2015 Marketplace Enrollees, applying eligibility by income and household size, by race, and geography from the US Census and Nielsen-Scarborough 2012-2015. Many of the largest multicultural states in the country, representing 80 percent of the country’s population (including Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, North Carolina, Pennsylvania, Texas, and Virginia) were among the 38 states reporting detailed data indicating the ethnicity of those newly enrolled and renewed in exchange Qualified Health Plans. Included amongst these are all the Federally-facilitated marketplaces and state-partnership and most of the state-based marketplaces with notable exceptions like New York, Connecticut and District of Columbia.


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