Presentation is loading. Please wait.

Presentation is loading. Please wait.

Kevin Counihan Chief Marketing Officer Friday, November 16, 2007 Contributory Plan Summary of Market Research.

Similar presentations


Presentation on theme: "Kevin Counihan Chief Marketing Officer Friday, November 16, 2007 Contributory Plan Summary of Market Research."— Presentation transcript:

1 Kevin Counihan Chief Marketing Officer Friday, November 16, 2007 Contributory Plan Summary of Market Research

2 2 Contributory Plan Proposed Product Summary & Research Results  Presentation Objectives  Contrast Status Quo (“Employer’s Plan”) to Proposed Benchmark Plan (“Employer’s Plan + Choice”)  Summarize Research Findings

3 3 Status Quo – “Employer’s Plan”  Employer selects a plan of health benefits & a single carrier  Employer selects the % of the premium they contribute (e.g. 70%)  Employees may participate or not participate.  Joe, Sally, Bob, and Roberta accept the offer  Henry opts not to participate in plan.  The employer selects Harvard Pilgrim HMO.  The employee pays 30% of the monthly premium. Example

4 4 Employer’s Plan - Example Employee (Age) Employer Pays Employee Pays Total Monthly Premium HPHC Joe (25) $187$80=$267 Sally (33) $187$80=$267 Bob (40) $187$80=$267 Roberta (61) $187$80=$267 Total $748$320=$1,068

5 5 Employer Plan + Choice Similar Products  Modeled after CBIA “Health Connections” product presented to CCA Board in October 2006  Health Connections  Introduced in 1995  4 Health Plan Choices  Employee Choice (38 options)  Ability for employer to benchmark plan design and contribution level  6,000 client companies  88,000 members  Broker distributed

6 6 Employer Plan + Choice (“Benchmark Plan”)  Employer selects a plan design from the Connector’s coverage tiers (e.g. Bronze) and a health plan (e.g. HPHC)  Employer selects the percentage of premium they contribute (same as status quo)  Employee can stay with their Employer’s plan (status quo) OR choose another health plan within the same coverage tier (e.g. Bronze)

7 7 Example – All Employees Select Employer Plan Employee (Age) Employer Pays Employee Pays Total Monthly Premium HPHC Joe (25) $111$80=$191 Sally (33) $123$80=$203 Bob (40) $211$80=$291 Roberta (61) $303$80=$383 Total $748$320=$1,068

8 8 Employer Plan + Choice Example: If Employee Chooses Alternative Plan  Employee may select any carrier available in coverage tier (“Bronze”).  Individual rating applies to employees who select an alternative to Employer’s Plan  Employer contribution is fixed for each individual employee  The employee may apply the employer’s contribution to another option he/she prefers

9 9 Employer Plan + Choice Some Employees Pick Alternative Plans  Example:  Joe elects Harvard Pilgrim Bronze  Sally elects Neighborhood Health Plan Bronze  Bob elects BCBS Bronze  Roberta elects Harvard Pilgrim Bronze

10 10 Example – Some Employees Pick Options Employee pays… Employee (Age)NHPHPHCBCBSMA Joe (25)$56$80$137 Sally (33)$80$153 Bob (40)$40$80 Roberta (61)$27$80$192 TOTAL$200$564 Employer’s monthly cost remains $748 Employees save or pay the difference. (30% of total cost of employer-selected plan) [Composite Rating] $320 $77 $82

11 11 Employer Plan + Choice – Core Features  Connector qualifies and selects sets of health plans on behalf of small employers  Employer Plan + Choice combines composite and individual rating  Employers selects coverage tier (e.g. “Bronze”) and health plan (e.g. Harvard Pilgrim)  Employer determines premium contribution level (e.g. 70%)  Employee contribution to Employer’s Plan is the same, irrespective of age or demographics

12 12 Market Research Summary  Objectives:  Test the desirability and sales potential of the proposed Benchmark Plan (“Employer’s Plan + Choice”)  Uncover simple and clear ways to describe Employer’s Plan + Choice features  Understand the communication challenges and administrative support needs of employers and employees

13 13 Methods  Focus groups and one-on-one interviews  Focus group research is qualitative and directional → not fool-proof indicator of product adoption  64 employers of firms with between 5 and 50 employees  22 employees of small business firms  12 brokers who assist small businesses in the purchase of group health insurance  Research conducted from September to November, 2007 by RKM Research and Communications

14 14 Research Results - Employer  89% indicated interest in new models of health insurance products  This product design is new to MA, but not unique (e.g. CBIA’s “Health Connections”)  76% chose Employer Plan + Choice over status quo  65% thought Employer Plan + Choice would enhance service and rate competition

15 15 Research Results - Employee  100% reacted “positively” to availability  82% “Very Positively”  100% would choose Employer Plan + Choice over status quo  100% found it “Acceptable” for employees of different ages to pay more/less based on their plan choices

16 16 Research Results - Brokers  92% believed small group market would “prefer” Employer Plan + Choice to existing products  83% believed Employer Plan + Choice would increase employees’ awareness/appreciation of health insurance plan

17 17 Summary and Discussion  Research suggests broad appeal for a new way to provide health insurance in small firms  Employers value offering choice to their employees, but want to budget their costs.  Employees value choice of health plans  Employer Plan + Choice proposed product shows traction among employers, employees, and brokers  Clear communication and administrative support are core requirements for employers, employees, and brokers


Download ppt "Kevin Counihan Chief Marketing Officer Friday, November 16, 2007 Contributory Plan Summary of Market Research."

Similar presentations


Ads by Google