There is a drumbeat of change being heard in health insurance, signaling a drive towards greater choice and transparency, delivered through digital mediums. But in an industry not known for either transparency or technology, achieving this goal can be difficult for both carriers and consumers.
Before diving into the challenges and solutions this industry faces, it is worth exploring what is driving this shift towards choice and transparency. We see two key dynamics that have come together: consumer demand and plan proliferation and differentiation.
Consumers demand choice
Whether consumers receive insurance through their employers or not, they are demanding choice and transparency for a number of reasons. First, we are all paying more for our insurance: more for premiums, more out of pocket. And as we do so, we want to have a say in how and where our money is being spent. In the group environment, the wave of change is being fostered by a shift from a paternalistic approach to benefits (i.e., “this is what you need”), to offering a menu of options from which employees can build their own coverage packages.
Millennials are another factor driving transparency. Studies have shown that this generation wants the ability to digitally research and shop. Four health plan choices presented on a static PDF doesn’t cut it with a group that is used to Amazon and other full-bodied online shopping experiences. Not to mention that millennials have their doubts about whether someone else can make better choices than they can for themselves.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.