Get ready for the annual blitz of Medicare Advantage ads

It’s almost that time of year again—the annual blitz of ads for the Medicare Advantage plan. The enrollment period runs from Oct. 15 through Dec. 7 for plans that go into effect Jan. 1.

And if history is any guide, there will be plenty of high-budget television ads from national and local insurance plans looking to boost their rolls.

In recent years, a blizzard of celebrity endorsers has pitched Medicare Advantage plans, from then-Colts head coach Frank Reich (for Indiana University Health Plans) to actress Tia Leoni (for Anthem Blue Cross and Blue Shield).

Insurers in Indiana, like much of the nation, are pushing hard to boost membership in their Medicare Advantage plans, the hugely popular alternative to traditional Medicare.

Enrollment in private Medicare Advantage plans has quadrupled in the past two decades, to 30.8 million Americans this year, according to Kaiser Family Foundation. It now covers more than half, or 51%, of the eligible Medicare population. The average enrollee has an average of 43 plans to choose from, the largest number ever.

The Medicare Advantage plans are in high demand for their wide range of benefits, from gym memberships to transportation for medical visits, with monthly premiums that are often lower than those of traditional Medicare. In Indiana, nearly a half-million people enrolled in a Medicare Advantage plan in 2022.

So how many ads can you expect to see? The folks at Kaiser Family Foundation last year reviewed more than 1,200 unique television ads that aired more than 643,000 times to check out the marketing strategies.

The ads were chock full of mentions of extra health benefits, such as dental, vision and hearing (92%), or the potential for lower out-of-pocket spending (85%). Many of the ads showed seniors in physical activity such as hiking, yoga and tennis.

But wait—what wasn’t mentioned that consumers should know? “Ads rarely mentioned traditional Medicare, or potential limitations with plan coverage, such as provider networks or prior authorization requirements, leaving beneficiaries with an incomplete view of their coverage options and the tradeoffs among them,” the KFF review said.

For seniors who want to truly study the pros and cons, there’s a host of consumer studies, including from Consumer Reports, Consumers’ Checkbook and US News.

But back to the ads. In recent months, the federal government has been cracking down on celebrity endorsers whose ads might confuse or mislead viewers. Chances are you have seen ads in recent years featuring Joe Namath, William Shatner, or Jimmy Walker, wanting to sell you a Medicare Advantage plan.

The ads, showing a Medicare card and logo, along with plenty of red, white and blue labeling, imply they are from the U.S. government. But they include a phone number that connects callers to a broker who is selling Medicare Advantage plans.

Starting this fall, the ads are going to have to disclose what insurance plan they are advertising.

The Centers for Medicare & Medicaid Services is cracking down on misleading pitches. A new rule prohibits overly general ads about the Medicare Advantage program “that often tend to confuse and mislead those individuals who are eligible to apply for some of these insurance plans,” Health and Human Services Secretary Xavier Becerra recently said.

In Indiana, seniors who want to enroll in a Medicare Advantage plan have plenty of choices from insurance companies, hospital systems and health brokers.

IU Health, which last year featured Reich, the former Colts head coach, said it has no plans to use a celebrity endorser this year for its IU Health Plans. Instead, it plans a targeted digital campaign, complemented by direct mail, under the theme “Your Health, Our Plans.”

“We were delighted with the success of last year’s campaign and its impact on raising awareness for IU Health Medicare Advantage’s robust plans,” the hospital system said in an email to IBJ. “This success has enabled us to refine our promotional efforts this year, eliminating the necessity for a broad celebrity-endorsed communications plan.”