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August 6, 2014 Readers Write 1 Comment

Why Payers Are Seeking More Consumer “Likes”
By Scott Rotermund


It’s no secret that payers are not well liked among consumers. In fact, recent data shows that only seven percent of consumers trust their health plan, only slightly better than the likes of oil and tobacco companies.

Additionally — and maybe even more importantly — when looking for health advice, only 18 percent of consumers turn to their health plan, which is startlingly close to employers at 12 percent. With a reputation for being stuck in concrete towers locked away from the real world, health insurance companies are increasingly working to connect with consumers and up their likability.

In their defense, health insurance companies earned a sour reputation of being the evil ogre denying claims because of how the market defined their role. It was a check and balance in the clinical system of physicians prescribing care and health plans assessing the value of it.

Now, with the rollout of Obamacare — be it good or bad — the payer’s role has changed along with its business model. Health plans are looking at the entirety of their populations rather than those seeking treatment. That is going from the 15 percent of its population that is in the “sickcare” system at any given time to 100 percent of the population, a startling and overwhelming change.

This shift is driven by the moral and economical desire to 1) prevent people from sliding into the sickcare system by keeping them healthy, and 2) build brand loyalty to retain low risk members. Retention is a primary focus for health insurance organizations, as the health insurance industry is now similar to the car insurance industry. People can shop around and receive premium reductions for good health just as they do for good driving. Innovating and transforming the customer experience is more important than ever as consumers are empowered to choose the payer of their choice.

How does an entire industry change its reputation from being the school principal to class president? It starts by building an emotional connection and providing something that genuinely impacts their life. It’s not passing out free one-size-fits-all t-shirts, but connecting with consumers on an individual level and getting them to take action.

Playing a more active role in optimizing consumers’ health is a huge leap for payers and inherently may not be immediately welcomed by consumers. Here are some down and dirty tips for health plans looking to become the cool kids in healthcare:

  • You can’t appease the masses. Take a personalized approach to supporting consumers in achieving their health and wellness goals. Similar to what we are seeing in the clinical setting with personalized medicine, personalized healthcare will have a greater impact and results. This is challenging when you managing a population of millions, which leads into the next tip.
  • If it works … partner with it. Some national plans have allocated millions into wellness and prevention programs and have not seen significant uptake. Take a card from cross industry collaborations like Apple and Mercedes and forge partnerships with companies that already have the asset or relationship you are looking to build. Companies that have a consumer mindset and can deliver an experience that may be outside a health plans’ expertise. Today’s on-demand, multi-mobile consumer expects to have a solution that speaks directly to them, about them. By leveraging a health optimization platform to deploy a personalized, interactive experience, payers have an effective and efficient way to support consumers in improving their health. Plus, a true integration platform will allow payers to plug in existing programs such as video health coaches or other digital resources so those investments to date pay off too.
  • Provide optimal rewards for optimal health. While one may assume that it’s human nature to take care of yourself, its been proven that incentivizing consumers for healthier behaviors pays off for everyone. In a recent survey, 96 percent of consumers said they would be healthier if rewarded. From premium reductions to badges, incentive-based tools can be the extra motivation consumers need to make a healthy choice or address chronic decisions. Payers can build a more “rewarding” relationship with consumers by celebrating both participation and outcomes with their members.

These activities are helping payers power up their relationship and the health of their population. Consumers will soon view their insurers as health advocates guiding them through an increasingly complicated healthcare system and toward a healthier way of life. 

Scott Rotermund is co-founder and chief growth officer of Welltok of Denver, CO.

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Currently there is "1 comment" on this Article:

  1. Interesting article from someone working in the growing “wellness motivation” industry. I wonder when, rather than offering simply financial or or recognition incentives, we begin to simply look at wellness metrics as something we instil in our children with the same value we place on good grades and citizenship marks in their schools? Education at a young age seems to be the real catalyst for systemic change that would instill a true ‘wellness revolution’. Even if our parents failed at emphasizing such measures when we were young doesn’t mean our children need to as well.

    My father died from heart disease in his 50’s and warned me late in life carefully to avoid some of his bad behaviors (smoking, taking on too much stress at work, etc.) when I in turn took to heart (no pun intended). I am now adding in several others that he didn’t warn me about (staying active and avoiding the slow move toward being overweight as my work become more sedentary, watching what I eat and monitoring more closely lab measured risk factors like cholesterol/triglycerides,blood glucose, etc.). My kids are watching me closely and are far more aware of such risk factors as much from (and maybe even more) from MY MISTAKES than simply by what I TELL them they should do…

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