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May 5, 2015
Hi, Oscar.
Brian Mortensen
The millennial health insurance consumer’s path to purchase.
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✤ Health insurance generally isn’t fun.
May 5, 2015
Background
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✤ Health insurance generally isn’t fun.
✤ According to a healthline.com 2014 survey, the U.S. health insurance and open enrollment systems were graded by about 82 percent of respondents at a “C” or below. For almost 20 percent, the U.S. health system earned an abysmal “F.”
May 5, 2015
Background
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✤ Health insurance generally isn’t fun.
✤ According to a healthline.com 2014 survey, the U.S. health insurance and open enrollment systems were graded by about 82 percent of respondents at a “C” or below. For almost 20 percent, the U.S. health system earned an abysmal “F.”
May 5, 2015
Background
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✤ In fact, 37% of millennials believe the current state of healthcare in the United States ranks “poor” or “terrible.” (Communispace)
✤ Health insurance generally isn’t fun.
✤ According to a healthline.com 2014 survey, the U.S. health insurance and open enrollment systems were graded by about 82 percent of respondents at a “C” or below. For almost 20 percent, the U.S. health system earned an abysmal “F.”
May 5, 2015
Background
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✤ For purposes of our discussion, Deloitte University Press defines the health insurance marketplaces as public (exchanges), private (employer), and “other” (private brokers or individual sales outside exchanges).
✤ In fact, 37% of millennials believe the current state of healthcare in the United States ranks “poor” or “terrible.” (Communispace)
✤ A newcomer to the world of health insurance, Oscar began insuring people in New York with the implementation of the Affordable Care Act in 2013-14.
May 5, 2015
Enter, Oscar
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✤ A newcomer to the world of health insurance, Oscar began insuring people in New York with the implementation of the Affordable Care Act in 2013-14.
✤ Through Oscar’s cartoonish, friendly ads, the company has tried to set itself apart visually.
May 5, 2015
Enter, Oscar
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May 5, 2015
Enter, Oscar
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The Experience: Web
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The Experience: Mobile
The Focus✤ Millennial New Yorkers
✤ Educated, tech-savvy Baby Boomers
✤ Hispanic heads of household/sole providers
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The Millennial New Yorker’s health care
✤ More than 8 million Americans have found health insurance through federal or state health exchanges. Of that figure, 28%, or at least 2.2 million, falls into the prized “Millennial” category: young people aged 18-35. Ranked by price and quality, plans are referred to as bronze, silver, gold, and platinum.
May 5, 2015
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The Millennial New Yorker’s health care✤ More than 8 million Americans have found health insurance through
federal or state health exchanges. Of that figure, 28%, or at least 2.2 million, falls into the prized “Millennial” category: young people aged 18-35.
✤ Younger people are inexpensive to insure, and we’re comfortable with our mobile/computing devices.
May 5, 2015
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The Millennial New Yorker’s health care✤ More than 8 million Americans have found health insurance through
federal or state health exchanges. Of that figure, 28%, or at least 2.2 million, falls into the prized “Millennial” category: young people aged 18-35.
✤ Younger people are inexpensive to insure, and we’re comfortable with our mobile/computing devices.
✤ 43% of millennials are mobile-dominant when going online, while the typical millennial spends roughly 35 hours a week absorbing digital media.
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ 23% of millennials have researched online reviews for doctors or hospitals (Communispace).
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✤ A conversation
✤ To be met where they are - in mobile and social
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ To be met where they are - in mobile and social
✤ Make the experience easy, but always offer further information: A February 2015 Health Services Research study found millennial health insurance buyers were easily confused throughout the process of purchasing insurance.
May 5, 2015
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ To be met where they are - in mobile and social
✤ Make the experience easy, but always offer further information: A February 2015 Health Services Research study found millennial health insurance buyers were easily confused throughout the process of purchasing insurance.
✤ Health insurance “Navigators” are key throughout the process to facilitate the purchase
May 5, 2015
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Millennials are proactive and educated about their health, and more likely than non-millennials to self-diagnose or treat at home before seeing a doctor. (Communispace)
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Develop trust
May 5, 2015
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What the Millennial wants in the insurance relationship…
✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Develop trust
✤ All-around, holistic approach to health management
May 5, 2015
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What the Millennial wants in the insurance relationship…
Consideration: The marketplace
✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most uninsured Americans are required to register for and purchase health insurance through a federal or state health care exchange.
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✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most uninsured Americans are required to register for and purchase health insurance through a federal or state health care exchange.
✤ In 2013-14, 11.4 million Americans used the Federal marketplace (healthcare.gov) to get insurance, while in New York State, more than 2.1 million registered through nystateofhealth.ny.gov.
May 5, 2015
Consideration: The marketplace
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✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most uninsured Americans are required to register for and purchase health insurance through a federal or state health care exchange.
✤ In 2013-14, 11.4 million Americans used the Federal marketplace (healthcare.gov) to get insurance, while in New York State, more than 2.1 million registered through nystateofhealth.ny.gov.
✤ According to a 2014 Commonwealth Fund survey, 73 percent of people who bought health plans on a health care exchange said they were somewhat or very satisfied with their new health insurance.
May 5, 2015
Consideration: The marketplace
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Education & Research: The competition
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✤This high-level involvement experience requires perusing the individual websites to compare plans with basic information listed on the marketplace as well as word of mouth recommendations.
May 5, 2015
Education & Research: The competition
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Sites like Consumer Reports can be useful
for exploring customer satisfaction.
May 5, 2015
Education & Research: The competition
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Sites like Consumer Reports can be useful
for exploring customer satisfaction.
But Oscar’s new presence means less
substantive data exists.
Education & Research: The Process
✤ Oscar is available in two states, New York and New Jersey. NJ residents must go through the federal exchange, while New Yorkers can sign up on newyorkstateofhealth.ny.gov.
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Education & Research: The Process
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The 1st of 71 pages available for New York City…
Education & Research: The Process
Purchase✤ Complete an application and pick a plan. Monthly billing.
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Evaluation/Endorsement
✤ Consistent engagement with consumer through multiple touchpoints.
✤ Mobile app, Fitbit, routine preventative medicine.
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Evaluation/Endorsement✤ Consistent engagement with consumer through multiple touchpoints.
✤ Mobile app, Fitbit, routine preventative medicine.
✤ Broad channels of brand placement:
✤ i.e. music outlets, nutrition, gym reimbursement
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Renewal✤ Buyers can return to the marketplace from mid-November through
mid-February to decide whether to renew.
✤ Income changes, a move, loss of job or other life changes can affect monthly premium.
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Evaluation/Endorsement + Renewal = Social Embrace
✤ The millennial’s ideal health insurance experience elicits feelings of joy (Communispace).
✤ Millennials are far more likely to share positive feelings about a company than negative (Mintel).
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Consideration
Education/Research
Purchase
Evaluation/Endorsement
Renewal
Social Embrace
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Path to Purchase Step Company objective Consumer needs Consumer barriers/concerns
Consumer behaviors Media touchpoint
Consideration Appear unique, caring, considerate
Realize health insurance is necessary and can be a pleasant experience
Health insurance exchanges are complicated, confusing
Doctor visits, over-the-counter pharmacy purchases, illness
Advertising in all mediums in , access with bloggers, partnering with millennial hotspots
Education & Research Be a partner in helping people get covered, whether it’s through Oscar or someone else
Reassuring information, invitations to discover the importance of health care
*Oscar’s relative infancy leaves little data for comparison
*Google/Yelp searches, doctor reccs., Word of mouth
On-the-ground outreach, Social media availability.
Purchase/Booking The health insurance user purchases Oscar coverage.
— — — —
Evaluation/Endorsement Ensure Oscar’s reputation, begin long-term relationship on strong note
Quick, consistent feedback, Empathy with unique personal situations, accessing primary and secondary care physicians, privacy security
Heavy tech use could lead to privacy concerns, plan limitations may be frustrating or disappointing
*Website visits, phone calls, web browsing, doctor visits, filling prescriptions, other medical necessities
Mobile app, engagement through Fitbit/active technology, web/social, outdoor sponsored activities
Renewal Maintain satisfaction, enhance personal relationship that comes with insurance
Assurance of stability and making the right decision, knowing one is contributing to a better health care world
Potential premium increases, income changes affecting advance credit, network changes affecting doctor relationships
Continuing to maintain, improve health situation, sharing experience of Oscar with others
Mobile app, engagement through Fitbit/active technology, web/social, outdoor sponsored activities, renewal subscriber benefits
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Thank you.
