Lab42 - A Closer Look at Healthcare Q1 2014

download Lab42 - A Closer Look at Healthcare Q1 2014

of 15

  • date post

    17-Aug-2015
  • Category

    Documents

  • view

    12
  • download

    0

Embed Size (px)

Transcript of Lab42 - A Closer Look at Healthcare Q1 2014

  1. 1. A CLOSER LOOK AT: HEALTHCARE and THE AFFORDABLE CARE ACT
  2. 2. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 1lab42.com | info@lab42.com TABLE OF CONTENTS 02 03 04 05 07 09 10 11 12 13 14 Introduction Respondent Segmentation Finding - Plan Package Type Finding - Behavioral Potential FInding - Brand Name Finding - Pre-existing Conditions Finding - Debt Finding - Value Finding - Confusion Other Key Findings Sources, Methodology, About Lab42
  3. 3. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 2lab42.com | info@lab42.com A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 is a Lab42 series exploring social and business issues to help health insurance companies (1) develop a better understanding of how those who have purchased individual insurance plans in the marketplace, under the Affordable Care Act, feel about the process, (2) learn what the competition is doing and (3) adjust strategies to better communicate with potential consumers. According to NBCNews.com, President Obama said that as of December 20, 2013, one million people had signed up for insurance through federal and state exchanges. After conducting a review of external research, we found that there was very little information or research conducted on those who have successfully used federal and state exchanges. Using Lab42s quantitative social media- based methodology, we reached these people directly to understand their experience with the federal and state exchanges, and how it will impact their healthcare consumption in 2014. This report is meant to help a variety of stakeholders in the healthcare industry better understand consumers behaviors and perspectives when it comes to their healthcare and specifically the Affordable Care Act. From our research findings, we identified several current trends related to the Affordable Care Act based on commonalities in the type of plan chosen, brand name chosen and basic demographic categories. THIS REPORT SPECIFICALLY ADDRESSES THE FOLLOWING: Finding - Plan Package Type Finding - Behavior Potential Finding - Brand Name Finding - Pre-existing Conditions Finding - Debt Finding - Value Finding - Confusion Other Key Findings
  4. 4. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 3lab42.com | info@lab42.com RESPONDENT SEGMENTATION Much of the current, publicly available literature on the healthcare industry and Affordable Care Act cover these topics broadly as a whole without probing those who are using the exchanges. While it is essential to understand the background of the Affordable Care Act, Lab42 believes understanding how people specifically interact with the exchanges is important for the healthcare industry in order to improve its product offerings and consumer experience. Lab42 used a direct approach in identifying 500 respondents who have successfully used an exchange to sign up for the Affordable Care Act, allowing participants to self-classify themselves. This sample, due to the methodology, may under represent those with limited internet access or those who are unable to read American English. In order to reach these 500 respondents, 11,886 people were screened. There is a fairly even split between gender: 45% males and 55% females. MAJOR FINDINGS While it may take years, or even decades, to assess the full impact of the Affordable Care Act, below are some initial findings that offer a glimpse into how consumers are responding to the healthcare exchanges and how they are making decisions regarding level of coverage, insurance carrier, and more. For this inaugural 2013-2014 open enrollment period, Lab42 uncovered: A strong plurality, 40%, selected a Silver-level program. The least expensive offered option, the restricted Catastrophic-level program (open to a very limited group) garnered a small 2.8% market share. The second least expensive and more widely available Bronze- level still only accounted for 23% of the total initial sign-ups. For sign-ups, Blue Cross Blue Shield, with its nearly universal market presence, dominated other major competitors with a 52% market share. On a state-by-state level, though, some competitors garnered a larger market share. Since the ACAs marketplace launch, news media from across the political spectrum have reported potentially serious issues with the online sign-up process. Yet, 72% of these successful exchange users were satisfied with their experience, compared to 16% who were dissatisfied with their experience.
  5. 5. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 4lab42.com | info@lab42.com FINDING - PLAN PACKAGE TYPE For the inaugural open enrollment season, enrollees took a middle of the road approach when selecting their insurance coverage. Bronze, the least expensive regular option, was selected by 23%. Silver, with 40%, was the most popular option. The two higher-end options, Gold and Platinum, took 24% and 10% market share, respectively. The Catastrophic option, available to those 30 or younger or with hardship exemptions, had a 2.8% market share. For the purpose of this report, we focus on the three most popular packages: Bronze, Silver, and Gold. Those who signed up for the bronze plans did the least amount of research before signing up for the plan and are the least likely to recommend the plan to others or use the same method to sign up again. This leaves an opportunity for health insurance companies and healthcare marketers to provide better information for customers as they are in the process of signing up for a bronze plan. Satisfaction With Method They Used to Sign Up Very Satisfied Somewhat Satisfied Neither Sastified Nor Dissatisfied Somewhat Dissatisfied Very Dissatisfied 30.2% 41.4% 11.8% 10.6% 6.0% 29.6% 35.7% 12.2% 13.0% 9.6% 27.1% 43.8% 11.3% 11.8% 5.9% 37.5% 39.2% 13.3% 6.7% 3.3% TOTAL BRONZE SILVER GOLD SATISFACTION WITH METHOD* USED TO SIGN UP TOTAL BRONZE SILVER GOLD Highly Recommend Somewhat Recommend Neither Recommend Nor Not Recommend Somewhat Not Recommend Highly Not Recommend 42.8% 37.2% 10.2% 5.2% 4.6% 41.7% 30.4% 13.0% 7.8% 7.0% 38.4% 40.4% 12.8% 4.4% 3.9% 50.8% 37.5% 4.2% 2.5% 5.0% TOTAL BRONZE SILVER GOLD How Well They Know Their Plan I Understand it Completely I Somewhat Understand It I Understand it a Little Bit I Do Not Understand it at All 37.6% 53.2% 8.0% 1.2% 27.8% 57.4% 13.0% 1.7% 35.5% 55.2% 8.4% 1.0% 45.8% 50.0% 3.3% 0.8% LIKELIHOOD TO RECOMMEND THE METHOD* USED TO SIGN UP HOW WELL PLAN IS UNDERSTOOD *Methods used to sign up include online/using the internet, telephone, call center, physical mail, and other
  6. 6. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 5lab42.com | info@lab42.com FINDING - BEHAVIOR POTENTIAL Those who purchased bronze and silver packages were more likely to have only seen a doctor one time in the past 12 months (24% and 22%, respectively, compared to 11% of those who purchased a gold package). Those who have not seen a doctor at all in the past 12 months are more likely to select the bronze package (25%). Gold plan subscribers were more likely to visit a doctor 3-4 times (31%) compared to bronze and silver plans (18% and 20% respectively). Additionally, those who purchase gold packages are more likely to go to a physicians office (64%) and an emergency room (43%) as soon as they start to feel sick, which is higher than other plan participants. This may mean an initial increase in health care consumption and may require some participant education on appropriate uses of emergency room and physician visits. Overall, it appears buyers of health insurance are making rational decisions. Those who invest in the more expensive plans (gold and platinum) intend to get the most out of their healthcare investment in 2014. Doctor visits are more of a routine for those who select the gold and platinum packages as they are more likely to have visited a doctor more than once in the past 12 months. TOTAL BRONZE SILVER GOLD 5 or More Times 34 Times 2 Times 1 Time N/A - I Havent Seen a Doctor in the Past 12 Months 13.6% 23.2% 29.2% 18.8% 15.2% 13.9% 18.3% 18.3% 24.3% 25.2% 11.8% 19.7% 34.5% 22.2% 11.8% 11.7% 30.8% 34.2% 10.8% 12.5% TOTAL BRONZE SILVER GOLD Much More Likely Somewhat More Likely Neither More Likely Nor Less Likely Somewhat Less Likely Much Less Likely 26.0% 26.4% 38.0% 5.2% 4.4% 25.2% 15.7% 47.0% 7.8% 4.3% 24.1% 30.0% 36.0% 4.4% 5.4% 30.8% 33.3% 28.3% 5.8% 1.7% PLAN TYPE VS. HOW MANY TIMES A DOCTOR WAS SEEN PLAN TYPE VS. HOW LIKELY PHYSICIANS OFFICE WOULD BE VISITED UPON ONSET OF SICKNESS COMPARED TO THE LAST 12 MONTHS
  7. 7. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 6lab42.com | info@lab42.com Much More Likely Somewhat More Likely Neither More Likely Nor Less Likely Somewhat Less Likely Much Less Likely 13.2% 19.0% 43.0% 11.2% 13.6% 10.4% 14.8% 52.2% 10.4% 12.2% 11.8% 19.2% 42.9% 11.3% 14.8% 18.3% 25.0% 35.8% 9.2% 11.7% TOTAL BRONZE SILVER GOLD PLAN TYPE VS. HOW LIKELY EMERGENCY ROOM WOULD BE VISITED UPON ONSET OF SICKNESS COMPARED TO THE LAST 12 MONTHS
  8. 8. A CLOSER LOOK AT: HEALTHCARE AND THE AFFORDABLE CARE ACT 2014 7lab42.com | info@lab42.com FINDING - BRAND NAME For this first open-enrollment period, subscriber market share strongly leaned toward Blue Cross Blue Shield with 52% selecting coverage from Blue Cross Blue Shield, followed by 11% Aetna, 9% Humana, 9% United, 9% Other, and 5% Cigna. One possible explanation for this large market share is due to market coverage, and it is also likely that Blue Cross Blue Shield made a strong push to most markets in the exchanges. When selecting a specific insurance provider and plan type, the most important single factor for these first enrollees is fits my monthly budget, with 26% citing this reason. The second most cited reason is the coverage provided (17%). Brand name I trust and inexpensive rounded out the top four primary reasons for selectin