The window for reducing costs is shorter with patients on commercial plans rather than traditional Medicare, giving commercial plans less time to reduce costs and generate savings. So just how much time do commercial plans, provider, organizations, and their partners have to reduce costs for their patient populations?

Our team analyzed a robust database of commercial claims with nationwide coverage to understand how long beneficiaries stay with their health plan — and if and when those who leave their plan return. The database includes employer-sponsored insurance and insurance purchased on the individual market.

When we talk about "churn," we're referring to patients switching between health carriers. Commercial patient churn happens most often at three levels: 

• Patients switching health carriers when changing employers
• Employers changing their employee health carriers
• Patients switching health carriers via the individual market

On average, commercial insurance beneficiaries stay with their health plans for less than two years.  

In addition, about 40% of beneficiaries leave their health plan within 12 months of joining it. But that also means that 60% stay with their plan for more than 12 months.