Should Highmark prioritize expanding its Medicare Advantage plan options to attract more seniors, or focus on improving existing plan benefits for current members?

Introduction

The trade-off we're examining today is whether Highmark should prioritize expanding its Medicare Advantage plan options to attract more seniors or focus on improving existing plan benefits for current members. This scenario involves balancing growth through new customer acquisition against enhancing value for the existing customer base. I'll approach this analysis by first asking clarifying questions, then diving into the product understanding, identifying key metrics, designing an experiment, and finally providing a recommendation with next steps.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on the current Medicare Advantage market, I'm thinking Highmark might be facing increased competition. Could you provide some context on Highmark's market position and recent growth trends?

Why it matters: Helps understand the urgency of expansion vs. retention Expected answer: Moderate market share with slowing growth Impact on approach: Would influence the balance between acquisition and retention strategies

• Business Context: Considering the healthcare industry's focus on value-based care, I'm curious about Highmark's strategic priorities. How does improving plan benefits align with the company's long-term goals?

Why it matters: Ensures alignment between product strategy and company objectives Expected answer: High priority on member health outcomes and satisfaction Impact on approach: Would emphasize the importance of enhancing existing benefits

• User Impact: Looking at Highmark's current member demographics, I'm wondering about the retention rates and satisfaction levels of existing members. Can you share any insights on these metrics?

Why it matters: Helps assess the potential impact of improving benefits for current members Expected answer: Moderate retention rates with room for improvement in satisfaction Impact on approach: Would influence the focus on retention strategies

• Technical Feasibility: Considering the complexity of healthcare systems, I'm thinking about the technical challenges of expanding plan options. What's our current capability to manage and support additional plan variations?

Why it matters: Determines the feasibility and timeline for expansion Expected answer: Moderate flexibility with some system constraints Impact on approach: Would affect the scope and timeline of expansion efforts

• Resource Allocation: Given the potential scale of either initiative, I'm curious about our current resource allocation. How are our product and marketing teams currently structured to support expansion vs. improvement efforts?

Why it matters: Helps understand the organizational readiness for each option Expected answer: Teams are balanced but stretched thin Impact on approach: Would influence the recommendation based on resource constraints