In today's wild and wooly health care environment, one thing is sure; we need to make some changes to our traditional marketing strategy to survive.
On the one hand, our current delivery system, without substantive change, will be unable to continue to provide affordable health care. On the other hand, a government controlled "single payer system," can only ration a reduced standard of heath care. Neither of these alternatives appeals to me.
As an industry, we have gone through four generations of reform and restructuring to try to maintain a cost-effective delivery system. Initially, deductible/co-insurance type indemnity plans predominated. Then as costs escalated, second surgical opinions and hospital precertification requirements were introduced. When that stopped working, PPOs and other managed care restrictions evolved and, finally, the emergence of HMOs as a prominent player. About the only simple cost solution left to the private sector delivery system, and it is a target of many state legislatures, is to limit the "administrative" cost of insurance companies. And, we all know what that means.
If we are going to survive we must learn to start to deal proactively with one of the core causes of this out-of-control inflation that is in our sphere of influence.... the consumer.
For three decades, we have focused our attention on managing the cost and services of health care providers. But without educated, prudent consumers, it will continue to be a losing battle.
Now is time for us to start focusing more attention on a client that we have ignored since 1979 (with the evolution of universal life). Right now we have the greatest opportunity in our history to grow and thrive. By changing our paradigm from a "product driven," "paternalistic" spreadsheet sales approach to a "needs-based" "employer/employee partnership" strategy we can help drive down costs and drive up revenue. What a concept.
By inducing employers to make the place of employment a health care educational institution, we can create the "controlled environment" that is required to get basic health care education to the masses. Without such a controlled environment, the necessary consumer education is nearly impossible. The brightest spot of this concept is that we have all the teachers and administrators already trained and ready to go. Guess who? (OK, so you guessed it.)
To win this war, the two competing camps in the health and welfare benefits market (core group brokers and supplemental benefits producers) must learn how to work as a team. The potential benefits to our industry are significant!
First, by utilizing a need-based partnering approach, which requires significantly more technical expertise, we can attract bright new talent into our industry (a key to our survival even without a government take over).
Secondly, we can start to deal with many of the root causes of health care inflation. Things such as over utilization, defensive medicine, demographic changes (the graying of America), lifestyle abuses, the uninsured and under insured, medical malpractice and yes even a reduction in "administrative costs."
Will the transition be difficult? Yes, it will require us to be better educated and more innovative. Will it be worth it? Absolutely, according to LIMRA, the untapped ancillary market is well in excess of $100 billion.
