THE DIGITAL HEALTH COMPETITIVE EDGE REPORT: How the big four US insurers rank on digital feature awareness — and what it means for customer satisfaction (AET, ANTM, CI, UHC)
This is a preview of THE DIGITAL HEALTH COMPETITIVE EDGE REPORT from Business Insider Intelligence. This report is exclusively available to enterprise subscribers. To learn more about getting access to this report, click here.
As digital permeates every corner of the US healthcare sector, the big four US insurers — Aetna, Blue Cross Blue Shield, Cigna, and UnitedHealthcare — have padded their health plans with digital tools that customers can use to seek medical advice, navigate costs, or contact customer service.
And several of these features are considered must-haves for respondents to our proprietary survey who are US Tech Early Adopters, or those who identified as either a first adopter or early adopter of new technologies. But a notable share of US Tech Early Adopters who hold plans with the big four US insurance companies aren't aware that their health plans offer various digital features, creating a window of opportunity for US health insurers to shore up their digital strategies to create a superior customer experience and solidify their market footing in the face of tech-focused entrants. And because we expect that digital will become synonymous with the US health insurance experience over the next decade, insurers that develop a robust digital strategy now will be in a good position to become market leaders. In The Digital Health Competitive Edge Report, Business Insider Intelligence uses primary research to rank the big four US health insurers — Aetna, BCBS companies, Cigna, and UnitedHealthcare — on awareness of their digital features among customers who are US Tech Early Adopters. By measuring member awareness of digital insurance features, we can help pinpoint areas where the big four US payers can improve their digital strategies. This report can also serve employers in selecting a health plan to contract with, as it will detail consumer awareness of features they may deem important to offer their workers. The companies mentioned in this report are: Aetna, Anthem, Apple, Berkshire Hathaway, Blue Cross Blue Shield Association, BlueCross BlueShield of Tennessee, BlueCross BlueShield of Western New York, Bright Health, Cigna, Clover Health, Devoted Health, Doctor On Demand, Fitbit, Garmin, Humana, JPMorgan Chase, MDLive, Oscar Health, Samsung, UnitedHealthcare, UnitedHealth Group. Here are some of the key takeaways from the report:
Digital is a nascent but growing part of the US health insurance customer experience. US Tech Early Adopters already rate some digital insurance features as must-haves, suggesting digital will become a more important determinant of customer satisfaction. A significant proportion of US Tech Early Adopters aren't aware that their health insurance plan includes high-value digital features. There's an opportunity for the big four US insurers — Aetna, BCBS, Cigna, or UnitedHealthcare — to emerge as digital leaders and improve customer satisfaction. Growing pressure from external threats should amplify the sense of urgency for payers to move on strengthening their digital services.
In full, the report:
Uses primary research to rank the big four US health insurers on awareness of their digital features among customers who are US Tech Early Adopters. Identifies which digital insurance features respondents value most. Helps pinpoint areas where incumbent US insurers can improve their digital strategies. Evaluates which digital health insurance features are likely to be most in-demand over the next 10 years.
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BIG TECH IN HEALTHCARE: Here's who wins and loses as Alphabet, Amazon, Apple, and Microsoft hone in on niche sectors of healthcare
This is a preview of The Big Tech in Healthcare research report from Business Insider Intelligence....This is a preview of The Big Tech in Healthcare research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more technology coverage with Connectivity & Tech Pro. Subscribe today to receive industry-changing connectivity news and analysis to your inbox. The Big Four tech companies — Alphabet, Amazon, Apple, and Microsoft — are accelerating their pursuit of the healthcare market, and they're starting to hone their strategies in on specific corners of the ecosystem. US healthcare players are being forced to move on their digital transformation efforts, and Alphabet, Amazon, Apple, and Microsoft are lending their data prowess and tech-savviness to become attractive partners for the job. Healthcare organizations have to contend with a population that's growing sicker, heightened costs, and shifting consumer demands for fast and convenient services. Further, the electronic health record (EHR) boom over the last decade has ushered in the need for organizations to revamp infrastructure and IT strategies. The Big Four have stepped in to alleviate these issues, bridging technological gaps that give health organization partners the opportunity to realize cost savings and bolster their top lines. These players are ramping up their efforts to reshape healthcare by developing and collaborating on new tools that could be a boon to consumers, medical professionals, and insurers. And they're zeroing in on specific areas within healthcare: For instance, Microsoft dropped its consumer-facing wearables and health record system to narrow its focus on its cloud offerings for health systems, Apple is knuckling down on clinical research initiatives via its wearables, Alphabet is focusing on its AI expertise to drive precision medicine, and Amazon is reaching across the board — from pharmacy to medical supply delivery to telehealth. And while their health plays have presented myriad opportunities for healthcare stakeholders, some of the tech giants' initiatives are encroaching on legacy players' businesses and upsetting incumbents. In this report, Business Insider Intelligence explores the key strengths and offerings the Big Four tech giants bring to healthcare — and how each is homing their healthcare strategy in on different corners of the market. We outline how their healthcare plays are causing a tidal change throughout the healthcare industry, examining how each player benefits and threatens healthcare incumbents. Finally, we lay out the barriers holding the Big Four back from reaching their full potential in healthcare. The companies mentioned in this report are: AbbVie, Adidas, Aetna, Allscripts, Alphabet, Amazon, Ancestry, Apple, Ascension, Berkshire Hathaway, Blue Cross Blue Shield, Bright Health, Calico, Cerner, Cleveland Clinic, Clover Health, Color, CVS, CVS Caremark, Deepmind, Devoted Health, Dexcom, Duke University Health, Eli Lilly, Emory Healthcare, Epic, Fitbit, Giant Eagle Pharmacy, Gilead Sciences, Google, GSK, Haven, Health Navigator, iRhythm, JPMorgan Chase, Mayo Clinic, Meditech, Microsoft, Moorfields Eye Hospital, New York-Presbyterian, Nike, Noom, Northwestern Medicine, Novartis, Nuance, Oasis Medical Group, Onduo, Optum, Orbita, Otsuka, Pfizer, PillPack, Premera, Providence St. Joseph Health, Quest Diagnostics, ResMed, Rite Aid, Sanofi, Seattle Children's Hospital, St. Jude Children's Research Hospital, Stanford University, Suki, Summit Pacific Medical Center, Surescripts, UnitedHealthcare, UnitedHealth Group, University of California, University of Chicago, Verily Life Sciences, and Walgreens. Here are some key takeaways from the report: Alphabet, Amazon, Apple, and Microsoft are gunning to carve out spaces within the healthcare market, and each is targetting its own set of sectors to transform or disrupt. Microsoft is focused on its race with Amazon and Google to lay claim to the healthcare cloud market, Apple is knuckling down on clinical research initiatives via its wearables, Alphabet is focusing on its AI expertise to drive precision medicine, and Amazon is shaping up to disrupt the pharmacy, virtual care, and telehealth realms. Their moves into healthcare are providing health systems with tech needed to patch up interoperability and data sharing gaps, giving healthcare payers a chance to collect a more comprehensive set of health data for members, and granting pharma companies the ability to streamline drug development and manufacturing. But tech giants' forward march into healthcare is, in some cases, troubling incumbents. Amazon's prescription delivery play has traditional pharmacies looking for ways to retain their customer bases, for instance, and Alphabet is building an ecosystem that we think could put it at odds with top dogs in the EHR industry. And their inroads into the healthcare space may be stymied by consumers' meager trust in tech companies handling their health information as well as a rampant cybersecurity crisis that could have healthcare firms holding off on tech investments. In full, the report: Provides an overview of Alphabet's, Amazon's, Apple's, and Microsoft's most prominent healthcare projects and plans. Highlights the persistent gaps in the US healthcare system that provide these companies and their cutting-edge technologies with entryways into the industry. Identifies the incumbent healthcare players that will benefit from and be threatened by big tech companies' foray into healthcare. Outlines the barriers that are still in place that are stifling tech giants' dive into the health space. Want to learn more about the fast-moving world of digital health? Here's how to get access: Purchase & download the full report from our research store. >> Purchase & Download Now Sign up for Digital Health Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of healthcare, delivered to your inbox 6x a week. >> Get Started Check to see if you already have access to Business Insider Intelligence through your company, or inquire about access if you don't. >> Check If You Have Enterprise Access Current subscribers can read the report here. Join the conversation about this story »
Buzzy health startup Oscar is making a big bet on a crucial change to how you get your healthcare. The CEO shared how he thinks that will happen.
Oscar Health CEO Mario Schlosser thinks a big shift is coming in how Americans get their...Oscar Health CEO Mario Schlosser thinks a big shift is coming in how Americans get their health insurance. Schlosser thinks that over time, fewer people will get their health insurance through their jobs. "I do think this will over time lead to a gradual then sudden disappearance of the employer market," Schlosser said during a presentation Monday at the J.P. Morgan Healthcare Conference in San Francisco. Oscar currently sells insurance on the individual exchanges set up by the Affordable Care Act, to small businesses, and to seniors via Medicare Advantage plans. The company on Monday announced a partnership with Cigna to expand small-business insurance sales. Click here for more BI Prime stories. Oscar Health CEO Mario Schlosser is keeping an eye out for a fundamental change in how Americans get healthcare. For many Americans, their employers are the ones picking up the tab for their healthcare. More than half of the non-elderly population is covered by an employer-sponsored healthcare plan. Schlosser said he thinks that's not always going to be the case. "I do think this will over time lead to a gradual then sudden disappearance of the employer market," Schlosser said during a presentation Monday at the J.P. Morgan Healthcare Conference in San Francisco. He pointed to the introduction of the Individual Coverage Health Reimbursement Arrangement that allows employers to provide workers with pre-tax dollars they can use to go out and buy health plans on the individual exchanges or Medicare, rather than paying for group health plans. Never miss out on healthcare news. Subscribe to Dispensed, our weekly newsletter on pharma, biotech, and healthcare. Unraveling employer-provided health insurance Ideally, that could increase the number of people buying health insurance on the ACA's markets, making plans more affordable, he said. But it'll take some initial employers to pave the way and convince other companies that it's a feasible way to provide health coverage, he said. "There's just so little logic for employers to be in the insurance markets that they've been in for the last 80 years," Schlosser told Business Insider in an interview on the sidelines of the conference. "That logic's going to eventually unravel." Changing the way Americans get their healthcare isn't an easy task, even as employers are spending more on health insurance premiums than ever. Companies are reluctant to make big changes to the insurance that they give their workers. "I think there's a system in place that employs millions of people, that for millions of people works really well. That's the employer-funded healthcare system." Progyny CEO David Schlanger, whose company works with self-insured employers to provide fertility benefits, told Business Insider. Oscar expanded significantly for 2020 Oscar sells insurance on the individual exchanges set up by the Affordable Care Act, to small businesses, and to seniors throgh Medicare Advantage plans. The company had 235,371 members as of September 30, slightly more than the company had in 2018. In 2020, the company expects to have 400,000 members and make $2 billion in gross premium revenue, Schlosser told investors on Monday. That's in part because of the new markets it's entered in in 2020, offering private Medicare Advantage plans to seniors in New York and Houston. The company's also selling Obamacare plans in 12 new markets for this year, including in four new states. Read more: $3.2 billion health-insurance startup Oscar Health just revealed plans to offer a new kind of coverage in 2 cities Oscar has raised more than $1 billion from investors enticed by its promise of a new tech-driven approach to health insurance. In August 2018 it raised $375 million from Google's parent company, Alphabet. Oscar's health plan collaboration with Cigna During the presentation, Schlosser said that Oscar and health insurer Cigna would be joining forces to offer health plans to small businesses. The companies plan to identify four markets to enter by the end of 2020. "This will let us go faster to more markets," Schlosser said. He cited issues Oscar's had in the past in the small-employer market, such as challenges building networks of doctors and hospitals. For instance, if an employer based in New York had a few employees who lived in Connecticut, where Oscar doesn't have a network, it couldn't offer the plan to those employeess. Eventually, the plan is to use the relationship with Cigna to offer small business coverage nationally, Schlosser said "I think we can become one of the dominant small group players," he said. The Cigna partnership helps demonstrate that Oscar's tech is modular enough that the company might be able to sell parts of it to different users, Schlosser said. "We're still building all this stuff for ourselves," Schlosser said. "The first client is still Oscar." For Cigna, working with Oscar helps the insurance giant sell to small companies with fewer than 50 employees. Cigna hadn't previously targeted those companies, an executive said. "What this does is bring a fully insured choice to that 1 to 50 small group marketplace," Julie McCarter, vice president of product solutions at Cigna, told Business Insider. Read more: Verily just presented for the first time at JPMorgan's big health conference. Here's how the CEO of Alphabet's life sciences firm laid out the unusual business to top investors. Meet EQRx, a startup that just raised $200 million to take on Big Pharma by making drugs cheaper A top investor at Andreessen Horowitz shares why she's betting Big Pharma firms will have to make a big change to how they do business in 2020 $2.2 billion Bright Health just struck a deal to buy a health plan and gain a big foothold in the lucrative Medicare Advantage market Join the conversation about this story » NOW WATCH: 3 dietitians debunk 18 weight loss myths, from cutting carbs to fad diets
This story was delivered to Business Insider Intelligence Digital Health Pro subscribers earlier this morning. To...This story was delivered to Business Insider Intelligence Digital Health Pro subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. Consumers with chronic myeloid leukemia (CML) — a rare form of blood-cell cancer — who were equipped with CVS' two-way messaging app for medication adherence were 22% more likely to stay on course with their drug regimens than those without the app, FierceHealthcare reports. CVS likely targeted CML patients because medication adherence is key to stifling progression of the condition: 90% medication adherence or better in the first year post-diagnosis significantly increases patients' chances at readmission. CVS has kicked its efforts to fuel improved health outcomes into high gear since fusing with health insurance titan Aetna, and now it's tackling specialty pharmacy — one of the industry's costliest qualms. Specialty drugs accounted for less than 1% of prescriptions, but drove 40% of employer-based pharmacy benefit group Willis Towers Watson's Rx Collaborative's total drug spending in 2018. And some industry pros predict that specialty drugs will account for 55% of US drug spending in 2020, per PwC. Since private insurers like Aetna are up against astronomical specialty drug costs and must contend with the high costs associated with patients' nonadherence, it makes sense why they'd seek to link consumers with digital tools to ensure they stick to their regimens. And this isn't the only health-boosting digital initiative the pharmacy has in the works: CVS is also in the midst of exploring how smartwatches can keep track of health metrics and augment medication adherence. We've seen pharmacy benefit managers (PBMs) taking a more active role in facilitating digital transformation as more insurers bring these players in-house. As middlemen between drug makers, insurers, and pharmacies, PBMs operate in the background of the healthcare ecosystem and have substantial negotiating power — thus, they've faced less pressure to transform than other industry players. But now, the US' largest PBMs share a roof with the largest insurers: PBMs Express Scripts, OptumRx, and CVS Caremark are all directly linked with Cigna, UnitedHealthcare, and Aetna, respectively. And Anthem rolled out a PBM of its own this year. As insurers look for ways to stanch spending on drugs, we should see more PBMs tweaking their business models to carve out space for digital tools and treatments that could help reduce expenditures: CVS Caremark and Express Scripts unveiled digital health formularies this year, and we think the other top dogs will follow suit in the year ahead considering digital therapeutics — and platforms like CVS' adherence solution — show promise for boosting outcomes. Want to read more stories like this one? Here's how to get access: Sign up for Digital Health Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of healthcare, delivered to your inbox 6x a week. >> Get Started Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Explore related topics in more depth. >> Visit Our Report Store Current subscribers can log in to read the briefing here. Join the conversation about this story »