How UnitedHealth capitalized on Medicare "choice paralysis"
Back in October I knew UnitedHealth would take the lead in signing up Part D subscribers. Why? Because they made it so darn easy by leveraging a relationship with AARP, and making it as simple as filling out a one-page form. People don't like choice. Rather, they do, but are unable to effectively evaluate their options to make the best decision, particularly when it comes to complex decisions like health insurance. This trait is particularly exacerbated in seniors (as a rule). "Choice paralysis," as it were.
AARP, of course, knows this because of their experience dealing with the senior population of the United States, and they were able to work with UNH to effectively streamline and simplify the Medicare experience. Nice job, guys. You hit a homerun with this one.
Of the 4.5 million, 3.2 are in UnitedHealth's AARP-branded prescription drug plan. Minnetonka-based UnitedHealth is the nation's second-largest managed care company and has taken over the largest share of the more than 3,000 private health plans offered by about 90 companies throughout the country.
I don't know what UnitedHealth's numbers were before Part D, but I wouldn't be surprised if their success propelled them from #4 or 5 to the #2 spot. Anyone know?
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