BlueCross BlueShield of South Carolina Assures Seniors of a "Shade of Blue That's Right for You"

November 2006

By Stephanie Byrd-Harrell

Headquartered in Columbia, S.C., BlueCross BlueShield of South Carolina (BCBSSC) serves nearly half a million of the state's residents. The company has 12,000 employees and offices throughout the state, as well as in Virginia, Florida and Texas. Its plan consistently ranks as one of the top BlueCross BlueShield plans in the nation and, for nearly 60 years, has strived to offer South Carolinians secure, cost-efficient health-care coverage.

BCBSSC is a well-known and respected marketer of Medicare supplement insurance, also known as "Medigap" coverage, a health-insurance policy offered to those who qualify for Medicare but want a supplemental plan for some of the out-of-pocket costs that Medicare doesn't cover.

There are 10 government-standardized Medigap plans from which an applicant can choose, known as plans "A" through "J." BCBSSC offers plans A, B, C, D and F, though it primarily limits its active marketing to two of its most popular plans, D and F. Alternatively, applicants can choose to apply for BlueSelect, BCBSSC's Medicare Select product, which requires members to use only hospitals within the BlueSelect network for non-emergency care.

For years, BCBSSC traditionally marketed plans D and F through its BlueCare Medicare Supplement campaign in the spring, which runs January through March 12, and BlueSelect in the fall, September through October 12. Both products offered guaranteed acceptance during their respective special enrollment periods and waived application fees for South Carolina Medicare beneficiaries aged 65 and over. BCBSSC pricing was and still remains competitive in the South Carolina marketplace, although national players have entered the arena, offering low-cost Medicare Advantage products. Since 2005, BCBSSC has offered Medicare Advantage products as well, with a new private fee-for-service, which debuted in September 2005, and a preferred provider organization, which launched in January 2006.

Developing an "Interim" Winner
In 2004, BCBSSC wanted to generate interest between the two special enrollment periods in an effort to build application leads for its sales representatives to follow up on and close. It turned to DMW Worldwide, which has been marketing products for BCBSSC since 1998, for help with this specific goal.

Unlike the spring and fall special enrollment periods described above, the application fee during the interim time frame was not waived, and applicants had to respond to health questions. What's more, there still was a waiting period for pre-existing conditions. Applicants could choose either a BlueCare or BlueSelect plan. During this process, a BCBSSC advisor helped the prospect select the best plan, based on criteria such as proximity to the nearest hospital, household income and tendency to travel outside of the state.

BCBSSC and DMW worked together to rework the interim program so it would meet these objectives:
  • Educate South Carolina residents aged 65 and over about what Medicare does and does not cover.
  • Explain the benefits offered by a BlueCross Medicare supplement.
  • Reinforce to those who may be covered by Medicare alone that Medigap coverage is affordable in the face of out-of-pocket costs (costs that continue to rise substantially each year).
  • Encourage South Carolina residents aged 65 and over to call or send for more information.
  • Generate a response rate of .15 percent and a conversion rate of 13 percent. It was determined that 825 leads and 107 sales would make the project a success.
Strategy
Without the benefit of guaranteed issues or a savings on the application fee, DMW was challenged by the two strategic requirements: get the envelope opened and get the inquiry for a sales follow-up.

To bring the marketing objective and target audience together, DMW determined that the plans' value-added extras should have prominence in order to differentiate BCBSSC from other major players in the market. The desired result was to have prospects pick up the phone or mail back the BRC. A free giveaway would be included to entice action and explain the next stage in Medicare reform-Medicare Part D, the new prescription drug benefit.

It was determined that the primary motivational factors for response were the need for the product, followed by the differentiation of BCBSSC's product over the other competitors'. It also was important that prospects be moved by the comfort of knowing that they will be covered by a reliable carrier-one that has been in the market for nearly 60 years. An instrumental element of any BCBSSC campaign is the desire to point out to prospects that BCBSSC is "homegrown." BCBSSC's creative executions tend to have a folksy feel, with references to the type of Southern hospitality and traditions that residents are used to experiencing. DMW was charged with bringing these elements to life in a comforting and inspiring way.

Creative Execution
The resulting Spring Interim mailing is a 6- x 9- envelope effort. The address side of the package features one window, through which the recipient's address is visible, and the return address, which includes BCBSSC logos and a mention of the organization's sponsorship of the March of Dimes. The reverse features a 5- x 8- window that reveals the freemium-a packet of seeds consisting of a special mix of Baby Blue Eyes, Blue Pimpernel and Ageratum Blue Mink-and a personalized message: Your free gift, John Q. Sample! There's a shade of blue that's right for you! The seeds were included to encourage opening of the envelope, while emphasizing that BCBSSC is homegrown.

Inside the envelope are just two components: a one-page letter and the sheet to which the seeds are affixed. Perfed to that sheet are two BRCs, one for the recipient to request information for himself and one for him to pass along to a friend. Both BRCs stress that this is a no-obligation request, but each features different toll-free numbers and promotional codes.

The back-of-the-seed-packet card further explains the freemium:
  • Please accept our free gift, a packet of seeds for you to plant in your garden. This mix is a special blend
  • three varieties of stunning blue flowers that bloom from summer to frost!
  • with BlueCross BlueShield of South Carolina, you're covered all year long!
The copy also introduces a second free gift, a copy of The South Carolina Medicare Beneficiary's Guide to the New Medicare Prescription Drug Benefit. This gift is tied to completing and returning the BRC and is sent as a component of the fulfillment package. Throughout the package, several key messages are stressed:
  • BCBSSC has been here for nearly 60 years. It is an expert in its field.
  • BCBSSC is part of the community. Its plans cover you and your families.
  • Members have a choice of plans to fit any budget.
  • Members are free to visit their own physicians.
  • The importance of BCBSSC's "value-added" benefits.
  • By calling the toll-free number or mailing in the reply card, prospects will receive a second free gift.
This campaign also includes a free-standing insert.

Results
Testing revealed that the success of the mailing was related to the sound tactical strategy: including the seed packet to encourage the opening of the envelope, coupled with the Medicare guide gift to encourage response. Effective copy led readers through the package to the response offer, and clear design elements helped South Carolinians feel right at home requesting more information. In 2005, with the introduction of the new federal prescription drug benefit, seniors clamored to learn as much as they could about it and how it would impact them. The premium guide was touted as a way for seniors to "learn what Medicare's 'Part D' drug coverage means for people with Medicare."

Both gifts helped drive the substantial response, because both gifts promoted BCBSSC as a locally based, premium-quality company that cares about the health and well-being of its constituents.

The 2005 Spring Interim effort generated an unprecedented 12 percent response with more than 16,000 leads over a four-month period. BCBSSC realized 461 sales as a result.

The Shades of Blue creative was awarded a Philadelphia Direct Marketing Association Benjamin Franklin Award for Direct Marketing Excellence and a Direct Marketing Association ECHO Award for outstanding creative execution and results. "Many of our potential customers call in when they receive a special something in the mail from us," explained Shelley Griffin, BCBSSC's manager of senior markets and long-term care. "Many were impressed that the seed mix had been created especially for the BlueCross BlueShield of South Carolina. We had requests for more seeds and, as anticipated, also had requests for enrollment packets."

Going forward, while the creative execution will remain in use, the product offerings will change. Due to the newly implemented open-enrollment periods for Medicare Advantage, as of 2006, Medicare eligibles only can select plan coverage between November 15 and March 31, thereby eliminating the need for a Spring Interim campaign. But the lessons learned will be used in the future to drive additional leads during the open-enrollment period.

Stephanie Byrd-Harrell is senior account supervisor for DMW Worldwide, a full-service direct response advertising agency with offices in Wayne, Pa., and Plymouth, Mass. The agency provides strategic planning, creative, database management, broadcast, media, production, fulfillment and Internet marketing. Byrd-Harrell can be reached at
(610) 407-0407 or via e-mail at sbyrdharrell@dmwdirect.com. Visit DMW on the Web at www.dmwdirect.com.