Open for business:
Insurers prepare for new consumer market

September 2013

In the summer of 2013, HRI conducted in-depth research, interviews with more than 20 industry and consumer experts, and commissioned a survey of over 100 insurance executives. HRI found the following:

Insurer participation

  • Sixty-nine percent of survey respondents are offering some type of exchange coverage in the first two years
  • Sixty-three percent said adding new members was an “extremely important” factor in the decision to sell on the exchanges; 61% said maintaining current members was “extremely important”
  • Roughly a third said they wouldn’t participate in the exchanges or were undecided; profitability concerns, adverse selection, and uncertainties about newly-eligible customers were the primary reasons for not participating

New exchange entrants

  • New exchange entrants include Medicaid managed care companies, new health plans run by large provider systems, healthcare start-ups, and non-insurer players such as web brokers and tax preparers

Targeting consumer preferences

  • Ninety-four percent of insurers think price will be “extremely important” to consumers
  • 91% think premiums will be the most important element of price, with total out-of-pocket costs (64%) coming in a distant second

Mobile strategy

  • Insurers should also build out data analytics and mobile strategies for targeting purposes. Mobile apps will help customers gain access to important medical and cost information