Fall 2008
Industry health:
What do retail health insurance consumers want? McKinsey & Co. says to listen up!
Currently there are 116 million consumers who buy health insurance retail and by 2011 they’ll total 151 million. These retail consumers make up a market that’s worth hundreds of millions of dollars annually and where the profit margins are 1.5 times that of group health insurance markets. Winning their business will require players in the health care financing sector to listen more closely to what consumers say and provide better support.
In 2007, McKinsey surveyed 3,000 people, all of whom had the option of choosing a health insurer, about their health care concerns, perceptions, and purchasing behavior.
- In general, the respondents were more concerned about the financial repercussions of injury or illness than about the injury or illness itself.
- There were differences in preparedness, with the seniors believing they’re the most prepared and the middle-aged people the least prepared financially.
- Most consumers don’t shop for health insurance; they find the available information confusing and therefore stick with products they know. Nearly 75% would consider purchasing an individual product from their current health insurer.
- Recommendations from others and brand recognition carry significant weight with these purchasers.
- All age groups were interested in a range of financial products in addition to stand-alone, health insurances, such as health-focused savings accounts or annuities.
- 70% want support when choosing new health care coverage, but only 41% of those who received such support found it satisfactory.
McKinsey concluded that:
“Companies that pay careful attention to the needs, desires, and habits of these consumers stand to gain a significant advantage over the competition…Partnerships across sectors – between healthcare providers and financial-services players, for example – could establish networks to provide guidance on the complicated decision facing consumers.” (Cordina, Jenny. and Singhal, Shubham. “Research in Brief: What consumers want in health care.” McKinsey Quarterly: The Online Journal of McKinsey & Co. June 2008)
Perception of disparities in physician care persists.
The 2007 Harvard School of Public Health/Robert Wood Johnson Foundation survey of more than 4,000 American adults compared perceptions of quality of physician care received between 14 different racial and ethnic groups to those of white Americans. The study found substantial disparities in the perception of the quality of physician care received by the members of the ethnic subgroups when compared to the perceptions of the white respondents. The subgroups felt that the care they received was significantly worse than whites perceived their care to be.
(Blendon, Robert J.; Buhr, Tami; Cassidy, Elaine F., Perez, Debra J., Sussman, Tara; Benson, John M.; Herrmann, Melissa J., “Disparities in Physician Care: Experiences and Perceptions of a Multi-Ethnic America.” Health Affairs, 2008;27(2):507.)
The more things change, the more they remain the same. Does this sound familiar to those who remember the PCP gatekeeper concept of HMOs?
“The medical home concept involves putting a physician – usually a primary-care doctor – in the role of coordinating continuous care and paying them for that work, as opposed to different practitioners providing episodic care.” (Robeznieks, Andis. “The Week in Healthcare: Physicians.” Modern Healthcare, June 2, 2008. P.20)
Is this a pattern? House Committee report finds Medicare pays up to 30% more for medications under Part D plans than does Medicaid.The House Committee on Oversight and Government Reform found that in both 2006 and 2007, Medicare received discounts of about 8% on drugs for beneficiaries through Part D, while Medicaid’s discount, on average, was about 30% on drugs for beneficiaries. (HFMA News, Monday July 28, 2008. posted on line on 7/28/2008 at 6:14 AM (CST))
Personal health:
Another cup of joe?...Coffee intake does not increase the risk for all-cause mortality in men or women and may decrease risk for cardiovascular mortality, according to the results of a study reported in the June 17 issue of the Annals of Internal Medicine.(Medscape Medical News, 7/1/2008 http://www.medscape.com/viewarticle/576381.)
Lessons learned from the obituary page…
Jack A. Weil died August 13th, 2008 at the age of 107. He was the “king of cowboy couture” and worked as CEO of the company he founded, Rockmount Ranch Wear Mfg. Co., until one week before his death. Mr. Weil said that he owed his longevity to quitting the following: smoking at age 60 (after starting at 40), drinking at 90, and eating red meat at 100. He did have a medicinal shot of Jack Daniels twice a week. (The New York Times, August 15, 2008, P. C12.)
Heeding advice may add years to your life…
Below are four, easy behaviors that add years to your life…but how many years?
- avoid smoking
- exercise
- eat lots of fruits and vegetables
- drink alcohol if you want in moderation
An 11-year study that involved 25,000 men and women ranging from 45 to 79 years old living in Norfolk, England, found that when each of the four positive behaviors was added, people lived longer. Those who scored “4”, i.e., they performed each of the four behaviors, had about ¼ of the risk of those who scored “0”, i.e., they performed none of the four behaviors. These results translated into an additional 14 years per person! (The New York Times, January 22, 2008, Science Section.)
