10 If we just look at the 34% of brokers that put Cigna in their top 3, we have a competitive advantage -- except for COSTCigna ranking -- 1st, 2nd, 3rd or 4th -- VersusAetna, UHC and BCBSAll broker respondentsOnly the brokers that put Cigna in their top 3Broker Table StakesProviding good benefits for the cost4th2ndProviding good network access for the cost3rdProviding good service and problem handling for me, the agent/broker1stProviding me with the resources to sell more businessOffering ways my clients could lower healthcare costsBroker DifferentiatorsBeing efficient and accurate in administrative matters for employers on payments, billing, and serviceProviding overall good member service for my clients’ employeesProviding different ways my clients can fund health benefits – including self-funding and fully insuredProviding data and information to my clients’ employees to help them make better health decisionsProviding useful data and information to my clients about their employeesHaving programs and plan designs that help increase the productivity of my clients’ employeesProviding effective health, wellness and disease management capabilitiesOffering convenient ways to bundle health, disability, life coverage and other products and servicesSee Appendix for detailed rankings
11 SWOT Analysis Strengths Opportunities Threats Weaknesses Cigna is the fastest growing player, but still lags the national competitors in brand awareness, top 3 consideration and net promoter score. Brokers rank Cigna 1st out of the 4 national players on being “differentiated”If we just look at the Brokers that put Cigna in their top 3 consideration set, we have a competitive advantage -- except for CostOverall, Aetna appears to be the national competitor in the weakest position. Cigna compares favorable to Aetna on most key measures.Continue to invest in building brand awareness and imageCommunicate to the marketplace that Cigna is the up and coming carrierReminder that our price situation is still a significant barrier to sales growthFocus our resources on the 34% of brokers that already put us in their top 3 consideration setConsider targeting Aetna to exploit their apparent weaker position with brokersAll competitors include services for wellness need. Differentiation is based on how packaging and Incentives.ThreatsWeaknessesBrokers rank Cigna 4th out of the 4 national players on being able to “meet their table stakes” (primarily due to cost)Lack of incentives offering.ROI is difficult to measure and prove.Wellness Select Segment “story” is not well defined leaving Sales with little or no direction on what solutions work best for each client.Marketing material content and availability needs rework to provide the best turnkey solution for Select Segment.Gaps in reporting capabilities (i.e. Participation results for a defined market or wellness solution).Trend Management System is used as a supplement predictive modeling tool behind our vendor partner. Is there a strong enough linkage between the Health Assessment, TMS and outcomes?Price sensitive market.Solution through vendor partner43% of brokers believe that the percentage of employers switching carriers will be higher in 2012 then it was in 2011Brokers are evenly split on how they are thinking about their future – 40% are optimistic and 44% are worried. This seems to indicate uncertainty.The top two topics of interest to brokers in 2011 are Reform and Health and Wellness…Case studies and bundling are of least interestCompetition: ongoing product development and activities by our competitors. Is $3.54 pepm a competitive price?Carve out to stand alone vendors (client desire to have a consistent wellness presence agnostic to medical carrier).Differences between Select and other CIGNA business (CIGNA Onsite Wellness Health Initiative.Health care reform.
12 ConclusionWhat can we learn from analyzing this Segment? What should we do?
13 Wellness 3.0: Milestones Opportunity Owner/Lead Due Date Launch of ApolloProductInitiated 6/1(phased launch)Develop marketing collateral for CSI7/1/2011Continue to enhance Sales Training Plan for Q3 & Q4Product/Wellness DirectorsDefine Wellness StoryProduct/Wellness Director–Cris BenzDefine program valuation approach (i.e. ROI)Develop COH biometric data feed to AlereDevelop next generation of client/customer communications8/1/2011Complete simple time and resource studies.Expand Health Assessment participation reporting capabilitiesDetermine Select Segment Wellness fund approach9/1/2011Complete annual refresh of competitive analysis91/12011Determine Healthy Frontiers program design changes for 2012Complete Trend Management analysisProduct/Wellness Director – MarshaDevelop on-line survey for clients with Basic Wellness10/1/2011Capitalize on any opportunities presented by Healthcare Reform1/1/2012
14 Wellness 3.0: Measurement of Success MetricTargetSuccessful Apollo Launch on 6/1- Yes or No- Low client disruptionYesLess than 10 unique customer issuesCIGNA Onsite Health Wellness Initiative (Client Engagement)Client penetration for new and renewing clientsPresale: Current = 20%; Goal = 30%Renewals = 7%; 2011 Goal = 10%; 2012 Goal = 15%Health Assessment Participation Rates (Customer Engagement)Health Assessment Participation ReportingPartnership Program: Current = 34%; Goal = 40%Healthy Frontiers: Current = 29%; Goal = 35%Sales CommunicationCertification of WellnessPhase I: Consultative Expert - 6 Wellness questions included in Value Proposition.Phase 2: TBD. Working with Sales Effectiveness.Healthy Frontiers SatisfactionSurvey by Health Frontiers Customers only(Note: confirming current results)85% satisfied or very satisfied in the program and helping them improve or maintain healthy habits85% find health assessment report useful or very useful in improving or maintaining healthy habits.
15 Facets Spectrum of Wellness Product: Solutions provide options for Clients based on commitment to wellness and funding available.Levels of Client and Customer EngagementLowHighPartnership ProgramHealthy FrontiersPlus BiometricsMulti-Year commitmentHA Participation RateHealth Coach/LifestyleMgmt Participation RateYear 1 & 2 Rate AdjustmentPresale OnlyAll funding typesHealthy FrontiersStandard Wellness24/7 NurselineHealth CoachingHealthy Living ProgramsQuarterly ChallengesTrend Mgmt SystemBuy-up at $3.54 pepmAll funding typesCIGNA Onsite HealthWellness InitiativeOnsite biometrics (or home kits)Highly Engaged includesCoaching and SeminarsClient ReportingRates socialized/Baked-in (across Presale and Renewing)All funding typesWellness 1.0Health Assessment Participation Rate1st Year Rate AdjustmentPresale OnlyAll funding typesStandard WellnessHealth AssessmentResources & ToolsSmoking CessationNurse24 ChatClient ReportingBaked-in MedicalAll funding types
16 Wellness Program Performance Healthy Frontiers clients represents only 6.4% (160 clients) of all Facets Select clients.Health Assessment completion rate is 29% for Healthy Frontier clients and 3.5% for all Facets.Bottom line ~ Client and Customer engagement levels fall short.Client Level EngagementHealthy Frontiers*(160 clients)Partnership Program*(62 clients)Wellness 1.0*Presale Only(230 clients)CIGNA Onsite Health Wellness Initiative – Presale*(202 clients)CIGNA Onsite Health Wellness Initiative – Renewals**(115 clients)% of Total Clients6.4%2.0%25%+20%7%Health Assessment Completion Rate Comparisons (Customer Engagement)Alere Book of Business(Benchmark)Facets Book of Business(Includes clients w/Standard pkg)Basic WellnessWellness 1.0*Healthy Frontiers***Partnership Program*% of Customers45%3.5%TBD29%34%*Select Segment Only; **Includes Proclaim and Facets Select Segment***Included Regional; +Estimate provided by Underwriting
17 Product Level SWOT Strengths Weaknesses 4/21/2017 Packaged Wellness solution with baked-in or buy-up options providing a combination of turnkey and flexible features.Quick to market with new solutions through vendor partnership (i.e. Nurse24 Chat).Robust reporting package for Healthy Frontier clients at no cost including year over year cohort reports strengthening multi-year results and relationship.Using wellness as a risk selection tool whereby actively increasing engagement (Wellness 1.0 and Partnership Program).CIGNA Onsite Wellness Initiative delivering biometrics, seminars, coaching and detailed client report out session by a Health Educator at no cost.Consulting staff resources for continued wellness services such as multi-year planning and incentive planning (Wellness Directors, CSS and CMs).Trend Management System (unique, effective and compelling).Inconsistent wellness fund handling (Fully Insured vs. Self-funded).Lack of incentives offering.ROI is difficult to measure and prove.Wellness Select Segment “story” is not well defined leaving Sales with little or no direction on what solutions work best for each client.Marketing material content and availability needs rework to provide the best turnkey solution for Select Segment.Gaps in reporting capabilities (i.e. Participation results for a defined market or wellness solution).Trend Management System is used as a supplement predictive modeling tool behind our vendor partner. Is there a strong enough linkage between the Health Assessment, TMS and outcomes?Price sensitive market.Solution through vendor partner
18 Product Level SWOT Opportunities Threats 4/21/2017 Determine Select Segment wellness fund approach for both funding types and implement (considering incentives as part of that fund or separate) (W1, W2, W8 and T1)Create an Incentives White Paper. (W2)Define ROI messaging (be smart about what to measure keeping aligned with the Value Proposition and possibly deliver above and beyond). (W3)Define the Wellness story – define the continuum of wellness solutions and the client attributes that fit. Include both client and customer story. (W1, W4, W8, T2, T6)Develop the next generation of communications. The right communications to ensure turnkey for all levels. Include customer facing materials describing what is done with the data an how it is protected. (W5 and T2).Continue to enhance Sales Training plan for (W1, W5 and T1)Expand reporting capabilities for defined markets and wellness solutions. (W6)Complete simple time studies to determine time and staff resources required for successful wellness solutions. (T1)Complete annual refresh of competitive analysis. (W4, W8 and T4)Complete wellness vendor research study to determine the actual threat of carve-outs. (T5)Schedule at a minimum of 2 discussions with Alere to discuss their planned product enhancements. (W9 and T3)Promote industry leading report out session by CIGNA Onsite Wellness experts. (W4, W5 and T1)Complete Trend Management analysis on the additional identification and value provided. (W7)Capitalize on any opportunities presented by Healthcare Reform (i.e. Grants for small businesses). (Not tied to specific Threat or Weakness)Client issues: budget, time and staff resources.Customer privacy concerns (i.e. intrusiveness objection).Vendor relationship and performance.Competition: ongoing product development and activities by our competitors. Is $3.54 pepm a competitive price?Carve out to stand alone vendors (client desire to have a consistent wellness presence agnostic to medical carrier).Differences between Select and other CIGNA business (CIGNA Onsite Wellness Health Initiative.Health care reform.
19 Wellness 3.0: Opportunities Focus Back to the fundamentals of 4PsProduct + Price + Promotion + Place = Increased EngagementProductCreate an Incentives White Paper. MediumDefine ROI messaging. MediumExpand reporting capabilities. HighSchedule two discussions with Alere to discuss planned and future product enhancements. HighCapitalize on technology enhancements by vendor. HighComplete Trend Management analysis on additional identification and value provided to Facets Select. LowComplete annual refresh of competitive analysis, including product and technology focus. HighCapitalize on any opportunities presented by Healthcare Reform (i.e. grants for small business). LowPriceDetermine Select Segment Wellness Fund approach for Fully Insured and Self-Funded clients. MediumComplete annual refresh of competitive analysis, including price focus ($3.54 pepm check). HighPromotionDefine the Wellness story. HighDevelop the next generation of communications. HighPromote industry leading report out session by CIGNA Onsite Wellness experts. MediumContinue to enhance Sales Training plan. HighComplete simple time studies to determine time and staff resources required for successful wellness solutions. MediumPlaceComplete wellness vendor research to determine the actual threat of carve-outs. LowEmerging Markets and Small Group. Low