BOSTON — Through a partnership with Humana, CUNA Mutual has rolled out a suite of products to serve members eligible for Medicare. The company said the new product line is aimed at helping credit unions retain Baby Boomers who are retiring, a group that often fades as active members upon retirement.
Credit unions have approximately 24-million members over age 55. Jeff Hunt, manager of consumer products with CUNA Mutual, noted that credit unions have a penetration rate of 41% among members age 55-64. But once those members hit 65, that figure drops to 28%.
The Medicare Suite will be offered this year through CUNA Mutual's MemberCONNECT distribution channel, and will offer new revenue to CUs. Credit unions looking to participate this year will need to decide quickly, as the next enrollment period for the Medicare product is Nov. 15 through Dec. 31. While 45-million Americans are currently covered by Medicare, it doesn't cover many large, out-of-pocket expenses, and the new suite is designed to help fill that gap. CUNA Mutual announced the new Medicare plan during CUNA's America's CU Conference here.
"The Medicare Suite came out of research conducted with members in the fourth quarter of 2008," said Hunt, "In the past (the drop off in penetration among members 65+ was OK, because we had enough members coming in in their middle working years to replace those who were leaving. But with the Baby Boomers soon to retire and holding over 70% of assets, the generations that follow aren't large enough or rich enough to replace them. So we have to retain the Boomers."
Hunt said the Medicare Suite fills a top concern of members as identified in the research, with 66% of people age 55-62 saying they are confused over what Medicare is, as are those already enrolled in Medicare. "We saw it as a big product gap for credit unions. Members are pretty aware that credit unions do not offer the product," said Hunt. "The good news was that even though credit unions don't have a name in health care, about one-third of members said they would be interested in getting it from their credit union."
Hunt noted that due to gaps in insurance and co-pays, some medical problems can lead to hundreds of thousands of dollars in expenses that are uninsured.
