COVID-19 May Push Americans To Change Plans For Open Enrollment

November 03, 2021 - Many consumers are considering changing their healthcare plan during open enrollment 2022, a movement largely motivated by the coronavirus pandemic, according to a ValuePenguin study. 

The Qualtrics survey went out to nearly 1,800 insured Americans for five days in October 2021. Respondents who were between the ages of 18 and 24 were considered Generation Z (Gen Z), Millennials were ages 25 to 40, Generation X (Gen X) included ages 41 to 55 and Baby boomers were between 56 and 75.

More than four in ten consumers are considering switching their health plans during the 2022 open enrollment season. 

Inclination to switch was fairly aligned with generational differences. The Gen Z and Millennial populations were more likely to be interested in switching their plans, while older generations were more likely to stay in their current health plan.

Of those who intended to change health plans, 23 percent knew one or more specific policies that drove them to enroll in a new health plan. Another 22 percent of these consumers were still determining what part of their health plan required change.

Even more than cost, the survey revealed that the coronavirus pandemic has continued to shape how Americans experience and navigate their healthcare choices. More than a third of respondents (35 percent) said that they were considering switching health plans due to the coronavirus pandemic.

Apart from influencing their own healthcare choices, consumers’ responses indicated that the coronavirus pandemic has also impacted their views regarding elements of the healthcare system as a whole. Forty-five percent of Americans—particularly seniors—expressed the opinion that those who have not received the coronavirus vaccine should have higher premiums.

Another third of respondents said that the driving force behind their decision making process was their own changing healthcare demands. 

Slightly less than three out of ten (27 percent) said that coverage costs were making them reconsider their health plan options. Four out of ten respondents said that their out-of-pocket healthcare spending for 2021 was too costly. Not only are present health insurance premiums high, but 45 percent of consumers expected them to only get higher in 2022.

While price may have been less significant when it came to deciding whether to switch plans, nearly a quarter of the respondents said that premium costs were the highest priority when selecting a health plan. A fifth of respondents said that services were a priority and 14 percent said that deductibles were the crucial factor.

Consumers’ decisions around whether or not to switch health plans had different motivations depending on their age. Among Millennials and Gen Zers, 44 percent of those who expected to change plans noted that the coronavirus pandemic was the primary factor. Gen Xers and Baby boomers were more motivated by changing healthcare needs.

“During open enrollment, consumers can change their health insurance coverage preferences. While most people have never made a mistake around open enrollment, nearly one-quarter of consumers have,”  the researchers found.

Gen Zers and Millennials were most likely to make a mistake during open enrollment. The most common mistake was completely missing the open enrollment deadline. Other mistakes included failing to thoroughly examine their selection of available health plans, not purchasing enough coverage, and purchasing too much coverage.

Seniors’ reticence to change health plans echoes Medicare open enrollment patterns in 2018, when most beneficiaries neglected to compare plans.

CMS announced various changes to its processes and systems intended to support enrollees’ decision-making during open enrollment 2022. The agency has bolstered Navigator programs in order to provide more assistance to Medicare beneficiaries and Affordable Care Act enrollees. The enrollment site also nudges enrollees toward plans that might be important for them.