A Case Study: The City College of New York's Branding & Integrated Communications program, Spring, 2015

1. May 5, 2015
Hi, Oscar.
Brian Mortensen
The millennial health insurance
consumer’s path to purchase.
1

2. ✤ Health insurance generally isn’t fun.
May 5, 2015
Background
2

3. ✤ Health insurance generally isn’t
fun.
✤ According to a healthline.com 2014
survey, the U.S. health insurance
and open enrollment systems were
graded by about 82 percent of
respondents at a “C” or below. For
almost 20 percent, the U.S. health
system earned an abysmal “F.”
May 5, 2015
Background
3

4. ✤ Health insurance generally isn’t
fun.
✤ According to a healthline.com 2014
survey, the U.S. health insurance
and open enrollment systems were
graded by about 82 percent of
respondents at a “C” or below. For
almost 20 percent, the U.S. health
system earned an abysmal “F.”
May 5, 2015
Background
4
✤ In fact, 37% of millennials believe
the current state of healthcare in
the United States ranks “poor” or
“terrible.” (Communispace)

5. ✤ Health insurance generally isn’t
fun.
✤ According to a healthline.com 2014
survey, the U.S. health insurance
and open enrollment systems were
graded by about 82 percent of
respondents at a “C” or below. For
almost 20 percent, the U.S. health
system earned an abysmal “F.”
May 5, 2015
Background
5
✤ For purposes of our discussion,
Deloitte University Press defines
the health insurance marketplaces
as public (exchanges), private
(employer), and “other” (private
brokers or individual sales outside
exchanges).
✤ In fact, 37% of millennials believe
the current state of healthcare in
the United States ranks “poor” or
“terrible.” (Communispace)

6. ✤ A newcomer to the world of health
insurance, Oscar began insuring
people in New York with the
implementation of the Affordable
Care Act in 2013-14.
May 5, 2015
Enter, Oscar
6

7. ✤ A newcomer to the world of health
insurance, Oscar began insuring
people in New York with the
implementation of the Affordable
Care Act in 2013-14.
✤ Through Oscar’s cartoonish,
friendly ads, the company has
tried to set itself apart visually.
May 5, 2015
Enter, Oscar
7

8. May 5, 2015
Enter, Oscar
8

9. May 5, 2015
9
The Experience:Web

10. May 5, 2015
10
The Experience: Mobile

11. The Focus
✤ Millennial New Yorkers
✤ Educated, tech-savvy Baby Boomers
✤ Hispanic heads of household/sole providers
May 5, 2015
11

12. The Millennial NewYorker’s health care
✤ More than 8 million Americans have found health insurance through
federal or state health exchanges. Of that figure, 28%, or at least 2.2
million, falls into the prized “Millennial” category: young people
aged 18-35. Ranked by price and quality, plans are referred to as
bronze, silver, gold, and platinum.
May 5, 2015
12

13. The Millennial NewYorker’s health care
✤ More than 8 million Americans have found health insurance through
federal or state health exchanges. Of that figure, 28%, or at least 2.2
million, falls into the prized “Millennial” category: young people
aged 18-35.
✤ Younger people are inexpensive to insure, and we’re comfortable
with our mobile/computing devices.
May 5, 2015
13

14. The Millennial NewYorker’s health care
✤ More than 8 million Americans have found health insurance through
federal or state health exchanges. Of that figure, 28%, or at least 2.2
million, falls into the prized “Millennial” category: young people aged
18-35.
✤ Younger people are inexpensive to insure, and we’re comfortable with our
mobile/computing devices.
✤ 43% of millennials are mobile-dominant when going online,
while the typical millennial spends roughly 35 hours a week
absorbing digital media.
May 5, 2015
14

15. What the Millennial wants in the
insurance relationship…
✤ A conversation
✤ 23% of millennials have researched online reviews for doctors or
hospitals (Communispace).
May 5, 2015
15

16. ✤ A conversation
✤ To be met where they are - in mobile and social
May 5, 2015
16
What the Millennial wants in the
insurance relationship…

17. ✤ A conversation
✤ To be met where they are - in mobile and social
✤ Make the experience easy, but always offer further information: A
February 2015 Health Services Research study found millennial
health insurance buyers were easily confused throughout the
process of purchasing insurance.
May 5, 2015
17
What the Millennial wants in the
insurance relationship…

18. ✤ A conversation
✤ To be met where they are - in mobile and social
✤ Make the experience easy, but always offer further information: A
February 2015 Health Services Research study found millennial health
insurance buyers were easily confused throughout the process of
purchasing insurance.
✤ Health insurance “Navigators” are key throughout the process to
facilitate the purchase
May 5, 2015
18
What the Millennial wants in the
insurance relationship…

19. ✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Millennials are proactive and educated about their health, and
more likely than non-millennials to self-diagnose or treat at home
before seeing a doctor. (Communispace)
May 5, 2015
19
What the Millennial wants in the
insurance relationship…

20. ✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Develop trust
May 5, 2015
20
What the Millennial wants in the
insurance relationship…

21. ✤ A conversation
✤ To be met where they are - in mobile and social
✤ Support self-help
✤ Develop trust
✤ All-around, holistic approach to health management
May 5, 2015
21
What the Millennial wants in the
insurance relationship…

22. Consideration:The marketplace
✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most
uninsured Americans are required to register for and purchase health
insurance through a federal or state health care exchange.
May 5, 2015
22

23. ✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most
uninsured Americans are required to register for and purchase health
insurance through a federal or state health care exchange.
✤ In 2013-14, 11.4 million Americans used the Federal marketplace
(healthcare.gov) to get insurance, while in New York State, more than
2.1 million registered through nystateofhealth.ny.gov.
May 5, 2015
Consideration:The marketplace
23

24. ✤ Thanks to the Affordable Care Act’s provisions enacted in 2010, most
uninsured Americans are required to register for and purchase health
insurance through a federal or state health care exchange.
✤ In 2013-14, 11.4 million Americans used the Federal marketplace
(healthcare.gov) to get insurance, while in New York State, more than
2.1 million registered through nystateofhealth.ny.gov.
✤ According to a 2014 Commonwealth Fund survey, 73 percent of
people who bought health plans on a health care exchange said they
were somewhat or very satisfied with their new health insurance.
May 5, 2015
Consideration:The marketplace
24

25. May 5, 2015
Education & Research:The competition
25
✤This high-level involvement experience requires perusing
the individual websites to compare plans with basic
information listed on the marketplace as well as word of
mouth recommendations.

26. May 5, 2015
Education & Research:The competition
26
Sites like Consumer
Reports can be useful
for exploring customer
satisfaction.

27. May 5, 2015
Education & Research:The competition
27
Sites like Consumer
Reports can be useful
for exploring customer
satisfaction.
But Oscar’s new
presence means less
substantive data exists.

28. Education & Research:The Process
✤ Oscar is available in two states, New York and New
Jersey. NJ residents must go through the federal
exchange, while New Yorkers can sign up on
newyorkstateofhealth.ny.gov.
May 5, 2015
28

29. May 5, 2015
29
Education & Research:The Process

30. May 5, 2015
30
The 1st of 71 pages available for New York City…
Education & Research:The Process

31. Purchase
✤ Complete an application and pick a plan. Monthly billing.
May 5, 2015
31

32. Evaluation/Endorsement
✤ Consistent engagement with consumer through multiple touchpoints.
✤ Mobile app, Fitbit, routine preventative medicine.
May 5, 2015
32

33. Evaluation/Endorsement
✤ Consistent engagement with consumer through multiple touchpoints.
✤ Mobile app, Fitbit, routine preventative medicine.
✤ Broad channels of brand placement:
✤ i.e. music outlets, nutrition, gym reimbursement
May 5, 2015
33

34. Renewal
✤ Buyers can return to the marketplace from mid-November through
mid-February to decide whether to renew.
✤ Income changes, a move, loss of job or other life changes can affect
monthly premium.
May 5, 2015
34

35. Evaluation/Endorsement + Renewal =
Social Embrace
✤ The millennial’s ideal health insurance experience elicits feelings
of joy (Communispace).
✤ Millennials are far more likely to share positive feelings about a
company than negative (Mintel).
May 5, 2015
35

36. Consideration
Education/Research
Purchase
Evaluation/
Endorsement
Renewal
Social
Embrace

37. May 5, 2015
37
Path to Purchase Step Company objective Consumer needs Consumer barriers/
concerns
Consumer behaviors Media touchpoint
Consideration Appear unique, caring,
considerate
Realize health insurance is
necessary and can be a
pleasant experience
Health insurance exchanges
are complicated, confusing
Doctor visits, over-the-
counter pharmacy
purchases, illness
Advertising in all mediums
in , access with bloggers,
partnering with millennial
hotspots
Education & Research Be a partner in helping
people get covered, whether
it’s through Oscar or
someone else
Reassuring information,
invitations to discover the
importance of health care
*Oscar’s relative infancy
leaves little data for
comparison
*Google/Yelp searches,
doctor reccs., Word of mouth
On-the-ground outreach,
Social media availability.
Purchase/Booking The health insurance user
purchases Oscar coverage.
— — — —
Evaluation/Endorsement Ensure Oscar’s reputation,
begin long-term relationship
on strong note
Quick, consistent feedback,
Empathy with unique
personal situations,
accessing primary and
secondary care physicians,
privacy security
Heavy tech use could lead to
privacy concerns, plan
limitations may be frustrating
or disappointing
*Website visits, phone calls,
web browsing, doctor visits,
filling prescriptions,
other medical necessities
Mobile app, engagement
through Fitbit/active
technology, web/social,
outdoor sponsored activities
Renewal Maintain satisfaction,
enhance personal
relationship that comes with
insurance
Assurance of stability and
making the right decision,
knowing one is contributing
to a better health care world
Potential premium increases,
income changes affecting
advance credit, network
changes affecting doctor
relationships
Continuing to maintain,
improve health situation,
sharing experience of Oscar
with others
Mobile app, engagement
through Fitbit/active
technology, web/social,
outdoor sponsored activities,
renewal subscriber benefits

38. May 5, 2015
38
Thank you.