aca 2.0 webinar feb 2014
DESCRIPTION
Hispanic and Millennials have enrolled in the ACA Exchange at half the rate of all Non-Hispanics. That means substantial opportunity exists behind some cultural and generational barriers. As these newly insured take a journey through your brand’s experience and touchpoints, they will be reassessing their original brand perceptions, forming and sharing new brand opinions with circles of influence that include exchange eligibles for the open enrollment six months ahead.TRANSCRIPT
ACA 2.0: New Eligibles,
New Opportunity,
New Demands Critical Steps to seize & retain the untapped Hispanic & Millennial ACA Exchange Potential
1. 2014 Opportunity, progress & gaps
2. Main barriers to adoption critical to
address
3. An efficient targeting technique to
advance conventional age/language
engagement approaches
4. New customer experience demands
for insurers and hospitals
5. Immediate & Long-Term Tips to
maximize growth and retain share
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About Santiago Solutions Group
• SSG is a growth consulting leader driven by
management P&L experience, Big Data and
predictive analytics.
• We develop fact-based business models,
insights, customer experiences and roadmaps
that profitably segment distinct customer groups
and drive revenue.
• We help clients focus their resources where the
highest ROI opportunities exist and customize
strategies advancing efficient Total Market
growth.
© 2012 Santiago Solutions Group Inc. 2
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Carlos Santiago has been guiding strategic growth rooted on predictive analytics for leading marketers in health & wellness for 13 years. Prior to SSG, Carlos headed segment marketing business units in telecom.
Derene Allen specializes in insights & analytics identifying actionable levers with the highest potential impact for customer experience and brand advocacy.
Bessie Ramírez brings healthcare brand management and product development best practices for the development of strategic plans and implementation roadmaps.
About the Presenters
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Realistic Opportunity Assessment
The opportunity gap for 2014.
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1 in 4
Uninsured eligibles Millennials and Hispanics are
willing to pay above $100* monthly premium to avoid 1% penalty vs. 42% of NH
Currently, 1 in 4 Uninsured Hispanics & Millennials have price expectations aligned with actual Exchange plans options; it’s a good start!
Readiest
Potential
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*Univision Study on ACA participation, Spring 2013.
Q22: If you had to pay a monthly penalty of $[1% of income/12] for not buying health insurance, how much would you be willing to pay
each month to have the health insurance coverage for you and your family to avoid paying the penalty? Margin of Error of +/- 4%
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Of CA’s 1.6M potential (among willing to pay >$100), Hispanics represent 33% & Millennials 43%
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Huge Potential willing to pay still to be realized: 44-50% of the ready opportunity comes from Hisp & Mill
*“Individuals Enrolled in October, November and December, with Subsidy Status, Across Ethnicity” www.coveredca.com, calibrated to
current proportions 19.7% Hispanic and 80.3% NH. *Univision Study on ACA participation, Spring 2013, n=520
Eligible uninsured + IFP 18-64 FPL 139-400 (IFP=Individual & Family Plans)
SSG Opportunity Sizing: Scarborough 2013 Double Base USA + n=281,221
Hisp IFP 278K 18%
HUnIns>$100
240K 15%
NHUnIns>$100 395K 25%
NH IFP 650K 42%
CA Exch Subsidy Eligibles FPL 139-400 Documented:
Uninsured >$100* + IFP (000)
Proj Oppty = 1,563K
= 434K
33%
67%
17%
83%
CA Enrollment Progress &
Upside Potential**
Hispanic NH
16%
84%
Millennial
= 563K
Attained = 349K a/o 12/31
= 84K = 106K
Opp’y Ahead = 696K
Hispanic & Millennials pace of enrollment is 1/2 of NH pace
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Hisp IFP
230K 24%
H UnIns>$
100 121K 12%
NH UnIns>$1
00 278K 28%
NH UnIns>$
100 356K 36%
Hisp IFP 99K 13%
H UnIns>$100
57K 7%
NH UnIns>$100
266K 34%
NH IFP 355K 46%
Projected
Oppty=985K
SSG Analyses of Scarborough 2013 Double Base USA+ *Univision Study on ACA participation, Spring 2013, n=520 1UnIns>$100 refers to people that are willing to pay more than $100/month; IFP = Individual & Family Plans 2Central-So = Central and South Florida only (excludes Tallahassee DMA) 7
31%
Hisp
Share of Exchange
Eligibles In 3
Sample States
Projected
Oppty=777K
TX Central-So2
FL
41%
Mill
Eligible FPL Documented 139-400
UnIns>$100K + IFP*1 (000)
Of Texas ~1M in potential, 36% are Hispanic and 42% are Millennial; of C/So FL’s ~800K ‘ready’ potential, 20% are Hispanic & 35% are Millennial
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Opportunity for savvy Hospitals that master Patient Experience and apply to grab competitors’ share
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H-CAHPS standardizes customers perspectives of care experience1
culminating in Advocacy
Brings Consumers
• Trust In System
• New Currency
• Increased Freedom of Choice
• Cultural Competence To Forefront As Potential Differentiator
Rewards Hospitals with • Loyalty
• Higher ROI
92%
78% 71%
79% 78%
SFSH SD Avg. NationalAvg.
LocalAlternative1
LocalAlternative2
Patients Who Would Definitely Recommend the Hospital to
Friends & Family
1Includes: Communication - Responsiveness – Cleanliness - Customer Advocacy
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Mindset, Cultural Barriers Standing Between Eligibles and Adoption
The main barriers to adoption and which ones to address
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Complex System
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Subsidies
Multiple Brands
New Concepts
Multiple stakeholders
& Subsidies
Metal Program Plan Names
Fragmented process
Complex Enrollment
Federal, state, County government.
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Cultural/
Nuances
Relevant Comm.
Perceived Value
Customer Experience
Hispanics & Millennials face Additional, Interdependent Barriers to Adoption
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Generational
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Hispanic’s Distinct Cultural Nuances
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I didn’t have
health insurance
growing up
Cash is
king!
I feel healthier
than ever
I’m a 27 year old proud Latina Mom…
I have a degree but work 2 part-time service jobs
I love the web, but
prefer transactions in
person
I’m on my
smartphone
24hrs/day
I watch Drop Dead Diva
after my “novela”
I’m
slow to
trust…
Not many
doctors
understand me!
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Millennials: Digital & On-the-go
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Among the uninsured eligible for subsidies,
Millennials are more likely than Total to:
Often under-employed, living with parents
Afraid costs will increase1
Believe “I am my own doctor” and only go to doctor when ill2
Be hyper-connected, hyper-informed, hyper-influenced by SM/video clips
Engage in physical activities, often for socializing2
Sources: 1. Harvard Public Opinion Poll, Dec 2013 2. 2. SSG analyses of 2013 Doublebase GfK-MRI 2013 , N= 50,764
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Relevant Communications are Key in the Exchange
The ACA has overlooked main cultural communication challenges and in-lingual needs of Hispanics.
14 Sources: 1 MRI 2013. 2 The US Department of Health & Human Services. 3
Lackluster in-culture & in-language offering, devoid of consumer insights
Limited in-cultural communication channels
Suboptimal use of marketing tools
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Millennials & Hispanics are Facing Value Choices
The Moya-Baum’s, a typical eligible Millennial couple in their early 30’s
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Los Perez… an Upscale, FPL 250-400 and fully Bicultural/Bilingual
San Antonio, fa. of two,~$36K/yr
Basic plans from $1–4K/yr with fa. deductibles from $4.5–13K/yr
Healthcare expenses last year ~$1,200
Penalty of $360 is better for us!
Los Angeles, fa. of 5, ~$65K/yr
Basic plans from $4–6K/yr with fa. deductibles from $3–10K/yr
Healthcare expenses last year ~$4,000
We’ll deal with the Penalty of $650
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Value & Effective Prospecting
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An efficient targeting technique to advance conventional age/language engagement approaches
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The stated 2014 stated potential will expand 3x
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as insurers effectively recalibrate messages, reinforce offering for the untapped potential, grab competitive share, and create loyalty with base
3 Key Factors Will Play A Role In Expanding The Initial Pool Of Enrollees • Value Perception will improve with prospects • Tax Penalties will decrease consumers value threshold • Competitive Pressures
• Cost-savvy competitors will drive down prices
• Effective offering, messaging, targeting, and delivery will lead to share shifts
Op
po
rtu
nit
y
Time
It’s a marathon,
not a sprint!
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The Challenge: How to acquire & retain new entrants in a smarter way?
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Is there a better mousetrap that leads to increased ROI?
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Targeting Healthy Lifestyle individuals can yield base that increases competitive edge
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Directly resonating and connecting with Healthy Lifestyle individuals enhances
marketing effectiveness over Generational approaches yielding a pool that is
8-20% less likely* to have PCDs relative to age
103
108 104
95
87
94
Millennial Gen X* Boomer*
Index of Preventable Chronic Diseases (PCD) Among Healthy & Unhealthy Lifestyles by Generational Segment
Health Unaware Healthy Lifestyle
8% 10% 19%
100 = Millennial Avg
100 = GenX Avg
100 = Boomer Avg
Individual Healthy Scores
* Statistical significant at 95% confident level 2 SSG Wellness Segmentation™ (powered by GfK MRI) GfK MRI 2013 Double Base , N= 49,970
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Building Customer Intimacy with the Newly Insured
New customer experience demands for insurers and hospitals
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Validation Validation Validation
Purchase (Advocates)
Awareness/ Interest
At each Touch-point of Adoption & Engagement, any “stumbling block” can be disruptive & “scary”
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ACA/ Covered CA
Search for Information
Application & Eligibility
Determination Enrollment
Communication Tools
Distrust Cultural Nuances Perceived Value
Brand Promises
Complexity
Opinion Preference Consideration
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WHAT do I need to do to ensure a more positive customer experience?
Increased Customer Intimacy ensures healthier business growth
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KNOW THY CUSTOMER
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Focus on 2 key fundamentals to ease journey of Hispanic & Millennial eligibles and new enrollees
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SIMPLE
• Reduce customer effort & channel switching by ensuring all links work and explanations are short & to the point
• Understand key drivers of ongoing satisfaction/monitor always
• Simple & clear communications in the language of preference
• Relate terms, look & content to something more familiar (ie. car insurance)
• Create empathy
SMOOTH JOURNEY
CLEAR COMMUNICATIONS
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Strategic Implications
Tips to focus on right now to
maximize growth and retain share
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Overarching sustainable growth strategies to win the ‘Exchange marathon’ as opportunities intensify
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Shift From Thinking Of Patient Pools to Customers while applying Best Practices
Fully understand Total Market similarities & nuances and address them from the outset across functional areas
Ease ACA + your own gaps, by delighting and creating Hispanic & Millennial brand advocates
Integrate Strategies
Experience & Advocacy
Accelerate Customer Centric Transformation
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Create relevant & relatable identity
Revisit network design to ensure culturally competent access
Enable face-to-face, where Hisp & Mill are
Bring mobile solutions
Leverage personal circles of influence-SM
Create identity reflecting community
Secure in-culture and in-language medical
and support staff
Bolster pertinent disease maintenance &
prevention programs
In-person and mobile
Go way beyond H-CAHPS
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Simplicity
Relevance
5 Tips/2 Foundations to improve efficacy of Hispanic & Millennial efforts ‘Here & Now’
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TIME FOR
YOUR QUESTIONS
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Thank You
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Follow Santiago Solutions Group
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+1 818.736.5661
www.SantiagoSolutionsGroup.com
@Santiago_Group
We’d like to extend special thanks to Univision for sharing their study
on ACA participation, conducted during Spring 2013.