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Oscar Health: The Millennial Health Insurance Consumer's Path to Purchase

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

Oscar Health: The Millennial Health Insurance Consumer's Path to Purchase

  1. 1. May 5, 2015 Hi, Oscar. Brian Mortensen The millennial health insurance consumer’s path to purchase. 1
  2. 2. ✤ Health insurance generally isn’t fun. May 5, 2015 Background 2
  3. 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. 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. 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. 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. 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. 8. May 5, 2015 Enter, Oscar 8
  9. 9. May 5, 2015 9 The Experience:Web
  10. 10. May 5, 2015 10 The Experience: Mobile
  11. 11. The Focus ✤ Millennial New Yorkers ✤ Educated, tech-savvy Baby Boomers ✤ Hispanic heads of household/sole providers May 5, 2015 11
  12. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 26. May 5, 2015 Education & Research:The competition 26 Sites like Consumer Reports can be useful for exploring customer satisfaction.
  27. 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. 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. 29. May 5, 2015 29 Education & Research:The Process
  30. 30. May 5, 2015 30 The 1st of 71 pages available for New York City… Education & Research:The Process
  31. 31. Purchase ✤ Complete an application and pick a plan. Monthly billing. May 5, 2015 31
  32. 32. Evaluation/Endorsement ✤ Consistent engagement with consumer through multiple touchpoints. ✤ Mobile app, Fitbit, routine preventative medicine. May 5, 2015 32
  33. 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. 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. 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. 36. Consideration Education/Research Purchase Evaluation/ Endorsement Renewal Social Embrace
  37. 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. 38. May 5, 2015 38 Thank you.

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