A Conversation About 2015 Health Insurance And Digital Trends

Introduction Consumers are widening their use of digital resources to make shopping and purchasing decisions Health insurance is a continually evolving marketplace as consumer habits and needs, commercial interests, government regulations and technical capabilities change 2015 will bring more advancements, challenges and opportunities for consumers, plan members, employers, employee benefit consultants, plans, healthcare providers and other stakeholders

Consumer Acceptance Growing Consumers will increase use of health insurance digital venues in 2015 More consumers are accustomed to shopping/purchasing online for products or services involving deep consideration of price and value; auto, home, other insurance already heavily marketed by digital means Parallel to online banking, they will more actively manage online payments, deductible thresholds, use of benefits Consumers continue to readily use adjunctive resources such as patient billing, visit follow up, physician communications and other applications relevant to their healthcare benefits

Consumer Acceptance Growing Consumers are requiring complete coverage details and cost comparison data from a variety of health insurance providers o Dental o Long Term Care o Medical o Pharmacy o Vision Concerned about care/cost, consumers will more deeply engage websites with easy navigation, useful resources and comparative functions In 2015, plans with highly functional websites fortified with easy to access, well-organized, detailed content are deploying a competitive advantage over other plans with less developed digital capabilities

Plans Extend Digital Reach Employers will rely further on digital resources to manage benefit information, enrollment and administration online in 2015 Employee benefit consultants operating exchanges on their own and/or on behalf of employer clients are expanding this capability Insurance carriers, managed care plans and brokerages fortify digital resources to support, quantify and improve marketing/sales outreach State-based health insurance exchanges are becoming more established and technically reliable The digital consumer/patient health benefit interface increases its value as a source of data based on user behavior such as number of visits, pages frequented, time spent, downloads and other interactions

Health Insurance Exchange Examples Employee benefit consultant exchanges o AON Hewitt - Corporate Health Exchange o Buck - RightOpt o Mercer - Marketplace o Towers Watson - One Exchange Independent health insurance exchanges include: o eHealth Insurance Services o GoHealth o GetInsured o BB&T’s CarePlus Standard Exchange and CarePlus Custom Exchange

Health Insurance Exchanges The concept of health insurance exchanges is increasingly familiar to consumers; they will become more established throughout 2015 Many consumers have visited exchanges for other types of insurance and purchased through them Exchanges operated by employee benefit consultants, state governments and other interests are rapidly cultivating a growing base of consumers Commercial, entrepreneurial and technology investor interests are getting more involved with health insurance exchange business models

Employers Cultivate Exchange Concept Healthcare reform promotes portability of health insurance coverage; as workers move to different employers and/or elect to find competitively priced benefits on their own, they readily obtain health insurance through accessing an exchange Employers are moving away from a defined benefit model (where employers provide a fixed set of benefits to workers) to a defined contribution model (where employers offer a set amount of money to employees to purchase plans). o This type of arrangement provides employees with a specified budget to choose their own benefit plans based on their own preferences o Employers are able to budget expenditures for benefit coverage more closely and devote less resources to the administration of employee benefits

Assertive Digital Initiatives As the health insurance market increases use of digital venues, plans will: o Substantially increase digital promotion to increase reach and frequency for better exposure in a crowded marketplace o More efficiently manage content and flow of information shared between plan, plan members, plan sponsors and healthcare providers o Focus heavily on 2015 data analytics to sharpen content and improve marketing/sales targeting to existing members and new consumers for 2016 enrollment o Reinforce security of their digital presence to maintain strong, confidential integrity of consumer, patient, clinical and financial data

Digital Options Expand Further Plans will improve existing mobile apps and launch new ones to provide useful resources to members o Apps serve as a way to maintain more continual connection to members and actively engage new consumers o Provide a direct way to analyze effectiveness of promotions and messaging based on engagement data “Wearable” technology offers options for plans to engage more members over the course of 2015 o Additional market research and technical development required o Potential for promotional messaging, wellness and other applications

Summary Consumers, plan members, employers, employee benefit consultants, plans, healthcare providers increasingly converge via digital venues Plan providers with well-designed digital interfaces (for website, iPad, mobile, etc.) fortified with easy to access, well-organized, detailed content deploy a competitive advantage over plans with less developed offerings Analytics are a central, behind-the-scenes resource for plans to maintain present/ongoing digital marketing, sales and support with plan members to guide digital changes moving forward through 2015 into 2016 and beyond Health insurance exchanges are changing how employers, consumers and plans interface with each other Privacy/security in the digital health insurance marketplace is a leading priority Over the course of 2015, the digital health insurance marketplace will continue to advance and grow as a standard and pivotal industry segment