“The most startling metamorphosis over the last few years is the fast-paced transformation of health insurance into a true retail industry.”
PwC Chairman Bob Moritz made that observation in a recent Fortune article in which he outlined healthcare trends to watch. Moritz said that new customers, new market entrants and the growing presence of public and private exchanges is driving competition over quality and price. The result? An industry that is “increasingly responsive to its customers.”
As it should be. Much attention has been paid recently to the newly empowered healthcare consumer following the passage of the Affordable Care Act. Consumers have started shopping for plans that meet their specific needs, while not breaking their budgets. And after a year of exposure to public exchanges, consumers expect to be able to do that shopping online, just as they shop for a pair of shoes. Moritz says consumers want more “do-it-yourself” health options, and while that’s true, insurers must provide consumers with the tools they need to choose wisely.
Moritz believes that employers can be innovators in delivering high-quality and lower-cost care. To do that, many employers will turn to private exchanges, which experts predict will see 300 percent growth in the coming year.
Through a private exchange, employers can better cater to this newly empowered healthcare consumer. Moritz says health insurance is now a “true retail industry,” so shouldn’t shopping for health insurance be as easy and comfortable as shopping on Amazon? The online retail giant sets the bar for current e-commerce practices and understands the psychology of consumer decision-making. Amazon offers a “do-it-yourself” platform, organizes products into categories and anticipates customer needs based on shopper input and data. Insurers should take note, turning complex numbers and terms into conversational language and offering decision support technology that helps consumers understand their options.
Private exchanges with these features can further empower consumers, while allowing employers to provide high-quality health insurance options for their employees. For more information on the evolving healthcare shopping experience, check out our recent white paper “Designing a Retail Shopping Experience for Health Insurance: How to Help Consumers Understand and Value Their Insurance Choices.”
