Medicare DM Volume to Rise: Mintel Comperemedia

Medicare direct-mail volume for the fourth quarter of this year will top last year’s volume by 20%, forecasts Mintel Comperemedia.

Mintel reported earlier this week it expects insurers to send approximately 350 million direct mail pieces to non-customers from October to December 2009. Typically, insurance companies send the most Medicare mailings of the year from October to December, when they’re allowed to market Medicare Part D plan information to consumers, according to Mintel.

“This year, two competing forces—budgetary constraints and the growing population of Medicare-eligible consumers—influenced insurers’ direct mail strategies,” said Danial Hayes, vice president of insurance services at Mintel, in a statement. “It’s clear, however, that the growth of the Medicare population won. In the face of tightened budgets, insurance companies still managed a sizable increase in Medicare direct mail this year.”

In the first three quarters of 2009, insurers mailed approximately 360 million Medicare marketing pieces to non-customers, a 29% increase over the 280 million from the first three quarters of 2008. Mintel reported it anticipates a 24% increase in estimated mail volume comparing all of 2009 to 2008.

“Insurance companies haven’t backed off aggressive mailing strategies for Medicare. Instead, many insurers appear to have cut costs by lowering their spend on individual campaigns,” stated Hayes.

Going to a single color, eliminating artwork, and recycling past campaigns helps free up dollars so issuers can send out more direct mail, Mintel said.