Table of Contents
Executive Summary
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- Top takeaways
- Healthcare spending behaviors are as varied as the patient population
- COVID-19 hit the industry, but consumers will return
- Costs are still top of mind
- Impact of COVID-19 on healthcare spending
- Lockdown was a disaster for the industry, but patients are returning
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on healthcare spending, November 2020
- Opportunities and challenges
- Cost will remain a factor as US economy recovers from recession
- Telehealth will remain an integral part of medical care – and could bring cost savings
- Satisfaction levels are high, but healthcare providers need to prove they value their customers
The Market – Key Takeaways
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- Healthcare services is a $2.6 trillion industry
- Spending pressured with high unemployment
- Medicare coverage is a big change for Baby Boomers
- Chronic health conditions impact half of Americans
- Heightened focus on mental wellbeing
Market Size and Forecast
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- Healthcare services is a $2.6 trillion industry
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- Figure 2: Total US retail sales and forecast of healthcare, at current prices, 2015-25
- Healthcare spending represents second-largest category
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- Figure 3: Consumer spending by category, at current prices ($ billions), 2020
Market Factors
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- Healthcare spending will improve with COVID-19 vaccine
- Spending pressures likely with high unemployment
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- Figure 4: Consumer confidence and unemployment, 2000-October 2020
- Medicare coverage is a big change for Boomers
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- Figure 5: Medicare coverage, by younger and older Baby Boomers, January 2020
- Chronic health conditions impact half of Americans
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- Figure 6: Chronic health management status, July 2020
- Heightened focus on mental wellbeing
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- Figure 7: Experience of stress and select mental health conditions, May 2020
Companies and Brands – Key Takeaways
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- COVID-19 prompts all around outreach
- Amazon enters health wearables market with Halo smartwatch
- Insurers try to help unemployed get insured
Companies and Brands
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- Insurers increase creative outreach during COVID-19
- Aetna
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- Figure 8: “Importance of making #timeforcare during a pandemic,” Aetna national TV ad, July 2020
- Anthem and Blue Cross Blue Shield of Illinois
- Cigna
- Humana
- UnitedHealth Group
- Insurers offer discounted premiums as elective procedures plummet
- Amazon enters health wearables market with Halo smartwatch
- Insurers grapple with special enrollment periods to help newly unemployed
The Consumer – Key Takeaways
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- Cost is top priority in healthcare decision
- Several opportunities to market to men and women separately
- Healthcare costs are a significant part of household budgets
- Opportunity to help least affluent take more preventative measures
- Spending due to COVID-19 relatively low for now
- Telehealth services reaching a wide audience
- Consumers are satisfied with healthcare coverage
Factors in Choosing Healthcare Plans
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- Financial consideration top factor in healthcare decision
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- Figure 9: Top factors in selecting healthcare coverage, July 2020
- Financial considerations vary between men and women
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- Figure 10: Top factors in selecting healthcare coverage, by gender, July 2020
- 18-24s not concerned about premiums…yet
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- Figure 11: Top factors in selecting healthcare coverage, by age, July 2020
- Provider network key to those with employer-sponsored insurance
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- Figure 12: Top factors in selecting healthcare coverage, by insurance type, July 2020
- HSA eligibility attractive to parents
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- Figure 13: Top factors in selecting healthcare coverage, by parental status, July 2020
Healthcare Spending Budget
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- Healthcare costs typically account for up to 20% of annual incomes
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- Figure 14: Percent of yearly income devoted to healthcare spending, July 2020
- Women less likely to know how much is spent on healthcare
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- Figure 15: Percent of yearly income devoted to healthcare spending, by gender, July 2020
- 24-35s spending more of income on healthcare
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- Figure 16: Percent of yearly income devoted to healthcare spending, by age, July 2020
- Individually insured spend higher share of income on healthcare
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- Figure 17: Percent of yearly income devoted to healthcare spending, by type of insurance, July 2020
Preventative Healthcare
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- Majority of consumers take some preventative measures
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- Figure 18: Preventative healthcare measures taken in the past year, July 2020
- An opportunity exists to push men toward more preventative measures
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- Figure 19: Preventative healthcare measures taken in the past year, July 2020
- Many of the youngest consumers are bypassing preventative measures
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- Figure 20: Preventative healthcare measures taken in the past year, by age, July 2020
- Least affluent are least likely to take preventative measures
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- Figure 21: Preventative healthcare measures taken in the past year, by household income, July 2020
- Healthy habits deteriorate with financial stress
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- Figure 22: Preventative healthcare measures taken in the past year, by financial situation, July 2020
COVID-19’s Effects on Spending and Care
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- COVID-19’s effect on costs is relatively low
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- Figure 23: COVID-19’s effect on medical costs and healthcare scheduling, July 2020
- COVID-19 has more significant spending effect on young men
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- Figure 24: COVID-19 effect on medical costs and healthcare scheduling, by gender and age, July 2020
Prescriptions
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- High prescription drug costs are a real concern
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- Figure 25: Prescription drug behaviors, July 2020
- Prescription drug issues most relevant to elderly
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- Figure 26: Prescription drug behaviors, by age, July 2020
- Those struggling financially often forced to skip medications
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- Figure 27: Prescription drug behaviors, by financial situation, July 2020
Healthcare Behaviors
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- Not all consumers stay in-network, telehealth services more common
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- Figure 28: Financial implications of healthcare, July 2020
- Women more diligently checking provider is in-network
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- Figure 29: Financial implications of healthcare, by gender, July 2020
- Telehealth services not only for the young
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- Figure 30: Financial implications of healthcare, by generation, July 2020
- Parents utilizing telehealth services
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- Figure 31: Financial implications of healthcare, by parental status, July 2020
Attitudes toward Healthcare and Healthcare Spending
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- Lack of billing transparency tops list of concerns
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- Figure 32: Attitudes toward healthcare, July 2020
- High satisfaction with healthcare coverage
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- Figure 33: Satisfaction with healthcare coverage, July 2020
- With higher income, consumers feel less value
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- Figure 34: Satisfaction with healthcare coverage, by household income, July 2020
- Satisfaction dips with financial struggles
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- Figure 35: Satisfaction with healthcare coverage, by financial situation, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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