University of Kansas Study Shows e-Brokers Like SelectQuote Extend Rural Residents’ Access to Medicare Advantage Plans

E-brokers greatly expand opportunities for rural residents to obtain health insurance through Medicare Advantage plans, according to a new study conducted by researchers at the University of Kansas in collaboration with SelectQuote, Inc. (NYSE: SLQT).

The KU research analyzed data across 10 rural states and found that there are approximately 400,000 residents living in counties without a local, licensed Medicare insurance broker in their community. This creates a substantial access hurdle for seniors who are often in the greatest need of specialized healthcare and financial support. This data demonstrates that e-brokers like SelectQuote, which operate in nearly all counties across the nation, serve a valuable role in closing gaps in broker services.

In each county of the 10 states examined in the KU study, researchers analyzed how many traditional brokers serve the county, how many Medicare Advantage plans are offered in the county, how many Medicare Advantage plans SelectQuote offers in the county, and how many active SelectQuote beneficiaries are in the county. The 10 states studied were Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Mexico, North Dakota, South Dakota, Vermont and Wyoming.

The study found a strong overlap between rurality and lack of local broker access. In other words, counties with the highest percent of rural residents are often the same counties with less access to licensed local brokers. SelectQuote offers Medicare Advantage plans in nearly every county, even those without local brokers.

“The core finding of this study is that broker coverage is often thin in rural and financially vulnerable communities,” said Bob Grant, SelectQuote President. “Our technology-enabled platform allows us to serve low-income individuals who drive disproportionately high healthcare costs in the U.S. We are actively closing the access gap by helping chronically-ill individuals with their healthcare needs.”

“Additionally, we are able to serve beneficiaries in remote locations just as effectively as those we serve in major cities,” Mr. Grant continued. “At SelectQuote, we strive to ensure that every senior, regardless of where they live or their financial status, has the choice and expert guidance they deserve.”

SelectQuote’s Reach

Additional data from the study also supported the finding that e-brokers like SelectQuote successfully bridge income and geographical access gaps:

• Rural Reach: In SelectQuote’s case, the research indicates that SelectQuote’s active membership base nationally skews about 45% more rural than the national distribution of Medicare Advantage beneficiaries.
• Income Disparity: The study spotlights that lower-income counties generally have fewer local brokers per 10,000 residents than higher-income counties. SelectQuote’s customer base, for example, over-indexes in counties with lower median household incomes.
• Plan Choice: The findings also noted that SelectQuote generally offers a broader range of plans than local brokers in counties with lower median incomes.

SelectQuote serves seniors in nearly every county across the ten states studied. SelectQuote was also found to be more active in counties with high poverty among older adults, suggesting the e-broker model helps fill gaps where financial barriers to access may be greater.