Mike Augustine, of Greenville, S.C., had some errands to run athis local shopping centers: buy some groceries, pop into a mobilephone retailer, pick up some dry cleaning. And lastly, he had tostop by the health insurance store to pick up a better plan.

The new BlueCross BlueShield brick-and-mortar retail store atthe Magnolia Park strip mall staffs five licensed agents, preparedto help customers—by appointment or walk-in—navigate the new rulesof the health care reform, and to buy plans as they wouldelectronics or office supplies.

Though Augustine hasn't changed his plan, he says the visit washelpful.

“It was a good opportunity to speak with someone face-to-face,not sitting on hold on the phone or looking online through amillion plans that make little sense to me,” he says.

In shopping centers and on busy main streets across the country,health insurance storefronts are popping up, sandwiched betweenclothing shops, drug stores and home goods retailers. Though thestorefronts have existed for some time, excitement and anxiety overthe Patient Protection and Affordable Care Act have prompted anexplosion in the retailization of health insurance, with manycarriers offering in-store services that go beyond basic customerservice—blood pressure checks and educational seminars, forinstance.

Many compare themselves to banks, or to hands-on retailers likeApple, offering Genius Bar-like kiosks with on-the-spot problemresolution.

What they are offering is an experience that puts a face on theorganization.

Filling a Niche

Tom Paul, UnitedHealthcare's chief consumer officer, says thatwhile the stores have been many years in the making and are not adirect result of changes in health care reform, business has pickedup since PPACA became law.

“We can see, in certain settings, there is a definite need forpersonal interaction,” he says. “Where we have seen a growing needis particularly where consumers may have a concentrated time periodto assess their situation and make decisions. They look to us toget through an enrollment period and make an enrollment decision.In some cases, with language or economic barriers, having a storethat they can walk into is the best way for them to get engaged—ina physical space.”

Minnesota-based UnitedHealthcare—the country's biggest healthcarrier—is opening outlets across the United States. One of itsmost recently opened stores, in Queens, N.Y., offers help in theeight languages and Chinese dialects spoken in the neighborhood.Another, inside a retirement community in Florida's Sumter County,concentrates on its elderly residents.

“We’re looking to address a broad spectrum of consumer needs inspecific cultural or socioeconomic settings—some of the centers mayhave social workers on staff, for instance,” Paul says.

A shift in the market from group plans to individual plans hasalso created new needs for clients, says Pete Mittleholzer, themarket leader for a six-month-old store in Austin for BernardHealth.

“The majority of people have been getting insurance throughemployers, or a spouse's employer, or a parent's. But as premiumsincrease year after year, it becomes harder for employers to offerhealth plans,” he says. “Meanwhile, a lot of smaller employers arefinding that reimbursing can be cheaper and can be a better fit.So, for 30 employees, having one or two plans for everyone is notas beneficial as having a different plan for each employee. Forthem, it helps to meet face-to-face to work that out. Clients hearfrom their brokers maybe once a year, sure. But they also likemeeting face-to-face with advisors in the store, on theirterms.”

A key difference between in-store advice and dealing with abroker is the fee structure, he says.

“Our advisors in these stores are salaried, and I think that'simportant. When you’re trying to find a plan, you know that theperson you are talking to is not going to make any more money ortry to upsell anyone,” Mittleholzer says. “We think of it asshopping for the right health plan—less like buying car insuranceand more like dealing with a tax advisor.”

Some Concerns

While the service in these stores is typically free, it is sureto bolster carriers. As many as 85 million consumers will beshopping for their own health care on government and privateexchanges this year, according to consulting firm Oliver Wyman.Carriers are trying to promote their brands and reputations forcustomer service. What better way to advertise than to hoist abanner across the front of your inviting new marketplace?

“You’re going to have to market in a more retail environment,something that this industry hasn't had to do historically.Branding is going to become even more relevant,” WellPoint ChiefFinancial Officer Wayne DeVeydt said at an investor conference in2012, after the company announced a $50 million brandingcampaign.

But the new strategy is frowned upon by some. In a shopping mallon the western outskirts of Harrisburg, Penn., set between a petsupply store and a dental clinic, is a Highmark Direct shop, opensince 2009. Eric Beittel, a health insurance agent at nearby EndersInsurance Associates, has visited a few times.

“I have gone to see what they have to offer, of course,” Beittelsays. “There is hardly anyone ever there. I think brokers andagents sell a lot more policies than these stores do.

“They are a competitor, yet at the same time we’re selling theirproduct,” he says. “It's important that health insurance is as easyas possible for people to access, but at the same time I’m puzzledthat insurance companies would go to such a great expense to openup stores and not support their broker community more.”

But Matt Fidler, Highmark Health Services’ vice president ofconsumerism and retail marketing, says the carrier has 10 HighmarkDirect stores in Pennsylvania to “help customers better understandhealth insurance and make more informed decisions about theirhealth.”

Consumer advocates also are unhappy, worrying that uninsuredpeople will lean on the retail outlets rather than shop on theirstate's health exchange.

“They are only looking at one brand, rather than a wide range.Competition is good,” says Ron Pollack, director of nonprofithealth care group Families USA.

But for carriers, it is also a way to get to know the individualmarket, as the majority of their experience is in theemployer-provided sphere, says David Ridley, director of the healthsector management program at Duke University's Fuqua businessschool.

“They don't know the individual market as well and are unsurewhether this will be profitable, so they’re moving very carefully,”Ridley says.

A Reinvention

The trend is likely to continue, says Marc Pierce, president ofChicago research and strategy firm Stonegate Advisors, which hashelped several carriers evaluate retailing.

“The industry is finding ways to reinvent itself,” he says.

But it is not just the health insurance industry looking to getin better touch with individuals. In Colorado, the state exchangeConnect for Health Colorado last month opened a temporarystorefront on the 16th Street Mall, where consumers could purchasecoverage and apply for tax credits during the last weeks left inopen enrollment for health insurance. Certified brokers and healthcoverage guides were there to offer assistance.

In Connecticut, Apple-inspired storefronts and “assisters” tooutline plans in layman's terms has worked. In the Department ofHealth and Human Services’ recently released scorecard showing howfederal and state exchanges have performed in achieving theirenrollment targets, Connecticut far outpaced every other state. Infact, Access Health CT reached its March enrollment target byDecember, and by mid-April had enrolled more than 208,000individuals in health plans during the first open enrollmentperiod—more than double the original goal of 100,000.

The fact that, in an online world, physical marketplaces boostparticipation is telling, says Mittleholzer of Bernard Health:“They just want to feel like they are in the hands of an expert,who they can see. They just want that peace of mind.”