You’ve Got Drugs!

James M. Dowden

May 2008

Current Environment

Research Question

Why haven’t more Company X Medicare plan members signed up for the Rx Preferred Mail Pharmacy service benefit?

Methodology

Telephone Survey

• Asked 300 current members

• Has used a retail pharmacy

• Has not used the mail service

Key Questions

Are you aware of the preferred mail service benefit?

YES

80% are aware

Key Questions

How did you hear about the Preferred Mail Service?

#1 – Mailings from Company X

#2 – Company X Customer Service Reps

#3 – Friends and Family Members

Key Questions

Are you aware of the Generic Drug Savings benefit?

47% - YES

53% - NO

Key Questions

Are you aware of the Brand Name Savings benefit?

30% - YES

64% - NO

Key Questions

Are you aware of the Plan Call Doctor for New Rx benefit?

30% - YES

64% - NO

Key Questions

Is saving $45-$65 per year on a prescription meaningful to you?

73% - YES

Key Questions

Do you think using the mail order service helps keep premiums lower for everyone?

54% - YES

Key Questions

What are your concerns in regard to the Preferred Mail Service?

63% - Not familiar with RxS

61% - Enjoy going to their local pharmacist

46% - Worried Prescription will get lost, stolen or damaged

42% - Worried about accuracy of prescriptions

Key Questions

Why haven’t you signed up for the Preferred Mail Service program?

#1 – Like going to the local pharmacy

#2 – Don’t trust delivery in the mail

#3 – Not convinced of cost savings

Key Questions

Are you planning to sign up for the Preferred Mail Service program?

38% - No

36% - Yes

26% - Undecided

Key Findings

Why haven’t more Company X Medicare plan members signed up for the Rx Preferred Mail Pharmacy service benefit?

• Awareness of the benefits is low

• Intent to sign up for the service is low

• They prefer going to the local pharmacy

• Not convinced of cost and service benefits

Recommendations

Develop new direct mail pieces

Show the individual benefits of the preferred mail service

Personalize the communications

Focus on cost and service

What We Did

Created personalized direct mail pieces

–Identified Member by name

–Included actual drug need with actual cost savings

–Played up quality service

What Happened

In 3 Months Member participation level went from 6% to 18% since the changes in marketing materials

What’s Next

By January 2010 our goal is have 50% participation

The End

Questions?