WPS Health Insurance

PDP and Med. Supp.

Marketing Plan
2015-2017

Table of Contents

Executive
Summary
.3
Vision
Statement
..3
Situation
Assessment
...3
Marketing
Purpose
..4
Marketing
Priorities
.4
Market
Trends
.4
o Trends Specific to Consumers
Competition
..5
Target
Market
..9
o Sub Target Market
o Target Niches
o Market Growth
Product Offering and
Position.
11
SWOT
Analysis
...12
o Strengths
o Weaknesses
o Opportunities
o Threats
Marketing
Strategy
.13
Tactical
Calendar
..16

Executive Summary
WPS Health Insurance (HI) sells Medicare Supplemental Insurance (Med. Supp.) and
Prescription Drug Plans (PDP) to people enrolled in the Medicare Program. These
plans are intended to help people enrolled in standard Medicare fill the gaps in their
coverage. HI Med. Supp. is available to Medicare beneficiaries in Wisconsin, Iowa,
and Michigan, while HI PDP is available to Medicare beneficiaries in Wisconsin.
HI customers are those eligible and enrolled in standard Medicare. These customers
have standard Medicare coverage, but there are many services and products that
standard Medicare does not cover which they still need coverage for.

This plan is intended to define the current industry and market, explain HI offerings
for Medicare beneficiaries and outline tactical marketing efforts that will support HI
Med. Supp. and PDP business objectives.
Define WPS Health Insurance Medicare Supplement Insurance and Prescription
Drug Plans
Outline tactical marketing efforts that will support HI strategic objectives
Develop marketing strategies to bring in more beneficiaries for Med. Supp. and PDP
Plans
Access HI current brand position among its competitors
Increase Med. Supp. sales by 50%
WPS GHA is in the process of identifying itself as a leader in Medicare Supplement
Insurance and Prescription Drug Plans.
Vision Statement
HI vision is to make it easier and more affordable for our customers to access
proven, high value health care and improve their well-being.
Situation Assessment
HI sells Med. Supp. and PDP to people enrolled in the Medicare Program.

HI sells Med. Supp. to residents of Wisconsin, Iowa and Michigan as a part of WPS
Health Insurance portfolio. People who enroll in standard Medicare can use WPS
Med. Supp. Insurance to cover services that would not normally be covered by
standard Medicare. People who enroll in WPS Med. Supp. Insurance get help and
extra services such as hospitalization, skilled nursing facility care, hospice care, help
with medical expenses, and more. WPS also offers PDP, which allows people
enrolled in standard Medicare to get prescription drug coverage on brand-name and
generic drugs. The WPS PDP is Wisconsins Top-Rated Not-for-Profit Medicare
Prescription Drug Plan, and was given a 5-star rating by the Centers for Medicare
and Medicaid Services (CMS).
Ideally, HI would like to expand its sales in Med. Supp. and PDP, however it is a
lengthy process to get licensed to sell Med. Supp. and PDP in other states.
Currently, HI Med. Supp. is sold in Iowa and Michigan however HI hasnt done much
marketing or direct mailing to residents in the state of Iowa and Michigan. Med.
Supp. is currently being sold in these states and it would be beneficial for HI to form
a marketing initiative to target these groups more directly.

Marketing Purpose
Marketing can, and will, play a vital role in the following aspects:

Understanding Medicare beneficiary behavior

Increasing awareness via media outlets
Defining our differentiators
Developing multi-touch campaigns that drive awareness among all customers
Marketing Priorities

Social Media
o Increasing social media presence to identify HI as a thought leader
o Twitter, Facebook, Instagram for Med. Supp. and PDP

Expand Marketing Reach

o Creating direct mail campaigns for the state of Iowa and Michigan

Improve Promotional Items

o Making graphics and videos easy to use to better communicate
o Videos that show is a person is eligible to enroll in Med. Supp. or PDP
and how they can enroll
o Developing a more informative, interactive Med. Supp. online
handbook

Market Trends
Trends specific to Medicare consumers

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Medicare Advantage plans are offered by private insurance companies and allow
seniors to enroll in Medicare through a private company. People who use Medicare
Advantage Plans cannot enroll in WPS Med. Supp. or PDP.
2014: majority of the 54 million people on Medicare are in the traditional Medicare
program, with 30% enrolled in a Medicare Advantage Plan.
In 2015, more than 99% of Medicare beneficiaries will have at least one Medicare
Advantage Plan offered in their area.
Since 2004, the number of beneficiaries enrolled in private plans has more than
tripled from 5.3 million to 16.8 million in 2015, which means that Medicare
Advantage Plans are becoming increasingly popular.
The average Medicare Advantage Plan average premium cost was $33.90 in 2015.
Medicare Advantage Plans (competition) Wisconsin: 35%.
J8: Michigan 30%, Indiana 22%
J5: Iowa 14%, Missouri 26%, Nebraska 13%, Kansas 13%
Between 2010 and 2015, the number of people enrolled in Medicare Advantage
Plans will rise by 42% in Wisconsin.
There are 52 Medicare Advantage Plans available to residents
There are 29 Medicare Advantage Plans available to Wisconsin residents
In 2000 census the Medicare-eligible US population totaled 35.1 million, by 2030
that same population is projected to grow to 69.7 million, by 2050 to 81.9 million.
Health care spending per Medicare recipient will slow in the future because of lower
payments to doctors, fewer services per beneficiary and a lower age of beneficiary
(according to a budget review by the Congressional Budget Office)
We send member specific mail to current Med. Supp. members who dont have a
PDP
Medicare Prescription Drug Plans (sometimes called Medicare Part D) are plans
that lower the out of pocket costs of prescription drugs for those enrolled in
standard Medicare (not a Medicare Advantage Plan.)
$15.70 was the lowest monthly premium for a PDP.
The average Prescription Drug Plan premium will rise to $33.13 in 2015, while in
2014 the average Prescription Drug Plan premium was $32.42
WPS offers two Prescription Drug Plans.
Plan 1 (for people who anticipate low yearly drug costs) premium is $60.70
Plan 2 (for people who anticipate higher yearly drug costs, take more expensive
medication) premium is $125.60
Some of our competitors monthly Prescription Drug Plan premiums (taken from a
search of zip code 53715 on medicare.gov compare price website)
Humana: $15.70
United: $29.80
EnvisionRx Plus Silver: $35.60
What we currently do
Population responds to direct mail
We send a series of envelopes with information on our Med. Supp. and PDP to
everyone turning 64 in Wisconsin
Competition

There are about 32 health insurance companies that sell Med. Supp. and PDP
nationally, including the state of Wisconsin.
HI competitors include Aetna Life Insurance, Humana and UnitedHealthcare. They
all have successfully developed a strong, national presence for selling Med. Supp.
and PDP for elderly citizens in the U.S. and the state of Wisconsin. The strong brand
reputation of these companies is making it hard for HI to bring in more customers
that are looking for Med. Supp. and PDP. Competing with these huge national
companies can be a setback for HI at times because these companies are so
nationally known.
*Due to the timing of the marketing plan we were unaware of the merge between
Aetna and Humana.

Company

Marke
t
Share

Reven
ue

14%

$80
Billion

Aetna

7%

$28
Billion

Humana

4%

$27
Billion

UnitedHealthc
are

UnitedHealthcare

UnitedHealthcare owns 14% of the market share making it the number one
competitor for health insurance. It brings in a revenue of $80 billion a year.
UnitedHealthcare has a strong relationship with Medicare and is endorsed by
AARP. United is also a huge supporter of insurance legislature and provides
funding towards political action and the improvement of health insurance. It
offers Medicare Advantage plans, Medicare Supplement Insurance Plans,
Medicare Prescription Drug Plans, and Medicare Special Needs Plans.
UnitedHealthcares Medicare Supplement Plan is sold in all 50 states.
Tagline: Helping people live healthier lives.
Mission: Our mission is to help people live healthier lives and to help make
the health system work better for everyone.

Aetna
Aetnas annual revenue is $28 billion. Aetna is marketable due to its affordable
pricing and coverage. Aetna offers a Medicare Advantage Plan, Medicare
Supplement Plan, and Prescription Drug Coverage. Aetna is sold in 28 U.S. States.
Tagline: We want you to know.

Humana

Humana makes the top five insurance companies in the country with a revenue of
$27 billion. It provides policies in all 50 states as well as Puerto Rico. Humana has
also maintained several hospitals since 1974. Humana offers Medicare Advantage
Plans, Medicare Prescription Drug Plans, and Medicare Supplement Insurance Plans.
Humana is sold in all 50 U.S. states.
Tagline: Guidance when you need it most.

Target Market
HI has a vast array of target markets. Males and females ages 65+ and people with
disabilities are the main target.
Current Target Market:
Med. Supp.

PDP

Elderly 65+ & people with disabilities in Wisconsin residents ages 65+ in the
the state of Wisconsin, Illinois and
state of Wisconsin.
Michigan.

Future Target Market:

HI has the opportunity to expand its business to other states other than Wisconsin,
Iowa and Michigan. However, its a lengthy, time consuming process to complete. HI
would have to become licensed first to be able to sell to other states.

Below is a map of the percentage of Medicare beneficiaries who use a Medigap

plan in each state. HI Medigap plan is Med. Supp. The map shows the potential
percentage of customers in each state that HI could sell to, should we get licensed
to sell our Medigap plan in other states.

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The table above portrays the number of Medicare Part D or PDP drug plans over the
years. Currently in 2015, there are only 1,001 PDPs. PDPs are very important for
many Medicare beneficiaries as they can only be sold by private companies (like HI)
and help Medicare beneficiaries pay for their prescriptions, which most beneficiaries
find very important. Since the number of PDPs has decreased, increasing WPS
reach for PDP, by selling in other states, could be a good opportunity for growth.
Sub Target Market
AARP (American Associations of Retired People) and other
national elderly organizations can be considered as a cost
effective target audience. Establishing a strong bond with
AARP or AMAC (The Association of Mature American
Citizens) would be beneficial in promoting HI services.
Health Insurance companies that are promoted by these
organizations have a strong, national presence and are known for being credible
companies.
Target Niches
PDP is sold only in the state of Wisconsin, while Med. Supp. is sold in Wisconsin,
Iowa and Michigan. It would be beneficial to target municipalities in the state of
Wisconsin for PDP/Med. Supp. and Iowa and Michigan for Med. Supp.
Some local Wisconsin organizations are:

LeadingAge Wisconsin
Wisconsin Aging Advocacy Network
Wisconsin Health Care Association
Wisconsin Association of Senior Citizens
Meanwhile, HI should create a direct mailing campaign for the states of Iowa and
Michigan to bring in more business. Currently there are no marketing initiatives in
those states.
Market Growth
HI has the opportunity to expand to other states however its a lengthy process to
get a license to sell in other states.
HI should focus on developing a stronger marketing campaign for the states of Iowa
and Michigan currently because there hasnt been any direct mailing or marketing in
the past.
Product Offering and Position
WPS offers Medigap policies to beneficiaries who enroll in standard Medicare. They
are Medicare Supplement Insurance, which covers services not covered by standard
Medicare, and WPS Prescription Drug Plan, which covers the costs of some
prescription drugs.

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Med. Supp. Insurance

WPS Health Insurance offers Medicare Supplemental Insurance, a Medigap policy, to
citizens of Wisconsin, Iowa and Michigan enrolled in both Medicare Parts A & B.
Medigap plans are private health insurance plans that Medicare beneficiaries can
buy to help them get coverage for some of the expenses and services not covered
by standard Medicare. WPS Medicare Supplement Insurance provides
supplementary insurance for services and supplies that may not be completely
covered by the base Medicare plan. WPS Med. Supp. offers additional coverage,
stable rates, free vision/hearing discount programs, a fitness club membership, and
the freedom to choose any doctor, specialist, or hospice in the United States. It also
offers several payment plans.
Medicare Prescription Drug Plan
WPS Health Insurance also offers a Medicare Prescription Drug Plan. This plan allows
citizens of Wisconsin enrolled in both Medicare Parts A & B to get coverage for some
of their prescription drugs that would otherwise not be covered by Medicare. Two
plans are available depending on the amount a person typically spends on
prescription drugs. Plan 1 (2015) offers a lower monthly premium and less coverage
in the Medicare prescription drug donut hole, while Plan 2 (2015) offers a higher
monthly premium and more coverage in the Medicare prescription drug donut
hole. WPS Medicare Prescription Drug Plan is the most popular supplement plan in
Wisconsin. It features competitive monthly premiums, a no-deductible option, low
copays, coverage for both brand name and generic drugs, and a network of nearly
1,000 Wisconsin pharmacies and 50,000 pharmacies nationwide. It also has a fivestar rating from CMS, the highest rating. CMS assesses these ratings once a year.
Because of this five-star rating, Medicare beneficiaries can switch into WPS
Prescription Drug Plan at any time during the year, as opposed to only during the
open enrollment period, such as with other Prescription Drug Plans.
Currently, WPS Health Insurance only offers WPS Medicare Supplementary
Insurance and Prescription Drug Plans in Wisconsin. Within Wisconsin, targeting all
individuals who are enrolled in standard Medicare and trying to enroll them in our
Medigap policies is an opportunity for growth. In addition, expanding our Medigap
policies to other states is an opportunity for growth. Many insurance companies who
sell Medigap policies, such as UnitedHealthCare and Humana, have Medigap policies
in all 50 states. Changing our website and materials to make them more accessible
and easier to read will allow us to compete with other companies Medigap policies.
In addition, offering competitive rates and more features will help us compete.
Opportunities for growth:
Get licensed in other states to sell Med. Supp. and PDP. This will expand our
reach and get us more customers than ever.
Look into offering a Medicare Advantage Plan. These are plans through
private companies that people can enroll in instead of enrolling in standard
Medicare and supplementing with Med. Supp. This could make our Medicare
offerings more comprehensive.
Allow our PDP customers to use more pharmacies
Offer more PDP plans than we currently do to appeal to a wider customer
base so every Medicare beneficiary can find something that works for them.
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SWOT Analysis
-

Strengths:
Strong reputation with loyal agents in Wisconsin
$1,000 annually for a routine vision or hearing exam, optional dental coverage,
household discount of 5% for spouse, renewable for life
PDP won 5 out of 5 stars in 2015
Prescription drug plans accepted at almost all pharmacies across Wisconsin (60,000
nationwide)
WPS MedicareRx Plans 1 & 2 give customers options
Outstanding coverage and stable rates
Freedom to choose any doctor, specialist, or hospital in the U.S.
Prompt friendly customer service
PDP offers competitive monthly premium, a no-deductible option, low copays,
coverage for both brand name and generic drugs, network of 1,000 Wisconsin
pharmacies and 50,000 nationwide
Direct mailing has been very successful in Wisconsin; people are responsive (65+)
WPS is the most popular Med. Supp. plan in the state of Wisconsin
Informative online quote and information kits

Weaknesses:
Nationally WPS isnt as recognized among its competitors because its mainly sold in
the state of Wisconsin
No marketing initiatives in Iowa and Michigan (Stephanie)
Need an updated Medicare changes guide online; current one is from 2012
Medicare website is lacking valuable resources and information
Dated online information (old photography)
Medicare Advantage plans are increasingly popular

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Opportunities:
Improve technology ie. Medicare IT systems
Improvement of skill sets and innovation
Increasing marketing tactics in October around the Open Enrollment Period
Med. Supp. sales goal is increased by 50%
Marketing and direct mailing in Iowa and Michigan

Threats:
Competitors innovative technology
Competitors ability to sell Medicare statewide
HI doesnt sell Advantage Plans
Lack of skill sets and innovation
Not potentially winning the five star rating for PDP for 2016
Marketing Strategy
Marketing will play a significant role in achieving the business goals and will aid in
Med. Supp. and PDPs success by delivering on the following initiatives.

Rebranding
WPS is going through the rebranding process. The Unit that sells WPS Medicare
Supplemental Insurance and Prescription Drug Plans is WPS Health Insurance,
formerly WPS Insurance Corporation.
This rebranding will make it easier for customers to understand who we are as a
company and what kind of product they are getting when they sign up for WPS Med.
Supp. or PDP.
By differentiating this brand, naming it WPS Health Insurance, and renaming our
WPS Medicare branch WPS Government Health Administrators, it will make it more
clear that these are two different business units. WPS Health Insurance is the unit
that sells Med. Supp. and PDP to people who enroll in standard Medicare, while WPS
Government Health Administrators (formerly WPS Medicare) is the unit that
processes claims for providers in our Medicare jurisdictions.
The rebranding will make the different business units clear to customers and
employees alike.
The rebranding will stay true to the brand attributes employees identified:

Efficient: contains client costs through efficient operations

Customer focused: operates according to unique client needs,
Dedicated and specially-trained customer service staff, operates
within a series of client informed, self-imposed service standards
that are measurable and reportable
Innovation leader: sets the industry pace for technology and
processes, aggressively pursues, invents or invests in new
technologies and innovations that allow it to better serve its
clientele at all levels (clients/government agencies, Medicare
recipients, TRICARE recipients, providers); these may include
claims administration technology, communications platform,
service triage/response technologies, electronic platforms, etc.

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Value-added drive: delivers extra value beyond client

requirements, beyond the requirements of contract RFPs, the
brand shows tangible and intangible value that sets a higher
standard for competitors to meet. Being in tune with clients
unofficial hot buttons allows the brand to excel in, and promote,
valuable service components that clients arent even asking for
Experienced: accumulates knowledge to inform best practices,
staff includes a representation of people who genuinely
understand the nuanced needs of the end-customers
In touch: stays connected with customers and their values,
leadership includes highly-experienced benefits professionals
and communications staff who embody vision and leadership,
actively participates in the organizations that military and
retired customers are involved in, understands
client/government infrastructure and processes, uses social
media to reduce customer service cost, maintains strong,
productive relationships with influencers and agencies in key
markets

Expanding market reach

WPS Health Insurance has a goal to increase Med. Supp. sales by 50%.
Leverage planned campaigns for the Medicare Supplemental Insurance
and Prescription Drug Plans
o Promote and educate agents on Med. Supp. and PDP plans
o Planned and systematic campaigns allow for easy and fast metric retrieval
Improve promotional materials
o Revise product brochures and establish sets for each customer group
by product
o Refine Med. Supp. and PDP sections of WPS Health Insurance website
to be interactive and a source for timely and relevant information
o Create relevant and timely communications, many of which we already
have and we know work well (we send simple envelopes through direct
mail to Wisconsin residents who are turning 65, and they have been
proven to work well)
o Make materials easy for potential consumers to follow and use, such as
a flow chart that shows them if they are eligible to use our Prescription
Drug Plan. Example Below:
o
o

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Formalized customer feedback

o It is important to maintain an ongoing pulse in our providers and

satisfaction

through surveys, non-solicitude feedback, analyzing campaign results,

among other ways. This will allow us to:
Establish baseline metrics which will facilitate our ability to accurately respond
Confirm we are meeting customer expectations
Identify areas for attention
Test impact of rebranding efforts and systems launch

Social Media

HI social media: Facebook and Twitter

Blog posts
Links
Tips
Following relevant accounts (CMS, Medicare, AARP, etc.)
o

Because Med. Supp. and PDP are sold through WPS Health Solutions,
all information and promotion regarding Med. Supp. and PDP should
come through the WPS Health Insurance social media accounts, not a
separate account. Integrating information about Med. Supp. and PDP

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into these social media posts will help promote our Med. Supp. and
PDP plans.

LinkedIn: provide an outlet for rich content that engages target audience and
showcases us as thought leaders with those audiences. Our connections should feel
compelled to share our content with their own networks.
Facebook: a powerful resource that can increase our credibility and awareness and
can provide valuable information about our core audiences. We are missing this
opportunity to engage with our target markets and our competition is rapidly
bypassing us. This proposal explains our need to start a Facebook page and manage
it appropriately to get results.
Tactical Calendar
Rebranding
Rebranding is ongoing and continues to roll out over the next few month of 2015.
This rebranding will occur company-wide. WPS will be changing logos and making
sure all inventory reflects the new branding. The WPS Brand Champions are a group
of WPS employees from all business units that are assisting in rebranding by acting
as a contact for other employees with branding questions, helping facilitate the
transition to the new brand, and sharing ideas.

September retreat- board approval

October 1 for November launch- Internal communications and brand rollout plan
October- executive staff feedback approval on rollout
October 15- comprehensive 2015 action plan
Website
As important dates including open enrollment go on, the Med. Supp. and PDP
portions of the website should reflect these important dates and what customers
should do in order to get their Med. Supp. and PDP plans. Putting out more
information and new materials on important dates and featuring Med. Supp./PDP
articles and materials more heavily during the busy seasons will help us sell more
Med. Supp. and PDPs.
Social Media
Implementation of social media posts about Med. Supp. and PDP should start as
soon as possible and have an extra push during the open enrollment period. They
should also continue to mention our 5-star rating for our PDP plan until a new rating
is given, so customers know that they can switch into WPS PDP plan at any time.
Using WPS HI social media accounts for Med. Supp. and PDP purposes will help
expand our reach to not only current Medicare-eligible customers but also to people
who will become Medicare eligible in the coming years as they may be more likely
to be using social media because of their younger age.
Improve Promotional Items

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Promotional items should continue to be revised as the open enrollment period

approaches and new mailings are sent out. In addition, promotional banners and
advertisements on the WPS HI website should be improved to better reflect what we
are selling for Med. Supp. and PDP.

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