Health Insurance - US - October 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Most Americans see health insurance as a right, not a privilege
Figure 1: Health insurance as a right, by generation, August 2018
Consumers are struggling with the costs of healthcare
Figure 2: Attitudes about healthcare costs, by age, August 2018
America is growing older
Figure 3: US population, by age, 2015, 2020, 2025
The opportunities
Young people need more help choosing the right plan
Figure 4: Assistance needed in choosing a health plan, by age, August 2018
Figure 5: Willingness to share health data, by age, August 2018
Young consumers are less loyal to traditional insurers
Figure 6: Willingness to use nontraditional insurers, by age, August 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Percentage of uninsured Americans is at an all-time low
More Americans are directly purchasing insurance coverage
The growing 65+ age bracket will test the limits of public health programs
ACA enrollment figures reach a plateau
Unemployment reaches new lows
MARKET BREAKDOWN
Percentage of uninsured Americans is historically low, but at a potential plateau
Figure 7: Percentage of Americans who are uninsured,* 2005-17
Enrollment figures show more Americans are finding coverage through direct-purchase
Figure 8: Percent of Americans with specified types of health insurance, 2013-17
MARKET FACTORS 
A nation grows older
Figure 9: US population, by age, 2015, 2020, 2025
ACA uncertainty
Figure 10: ACA enrollment, 2014-18
Figure 11: ACA enrollment, by age, 2016-18
Unemployment numbers are steadily falling, but so is labor force participation
Figure 12: Unemployment and underemployment, January 2007-July 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Digital tools extend the reach of healthcare
Future of public health programs faces challenges
Corporate partnerships and mergers common throughout industry
WHAT’S HAPPENING?
Most consumers are satisfied with their coverage and doctors
Figure 13: Satisfaction with health plan doctors and coverage, by age, August 2018
Digital tools extend the reach of healthcare
Figure 14: Aetna member communication, May 2018
Figure 15: CVS Email, August 2018
WHAT’S STRUGGLING?
Healthcare costs are ballooning, with little to show for it
Future of public health programs
Medicaid
Medicare
Affordable Care Act
WHAT’S NEXT?
Insurance as a Service
Corporate partnerships and mergers common throughout industry
Amazon, Berkshire Hathaway, J.P. Morgan joint venture
Aetna-CVS and Cigna-Express Scripts deals near completion
Walgreens and Humana are partnering to create senior health hubs
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most consumers see health insurance as a right, not a privilege
Monthly premiums and choice of doctors have the most impact on health insurance decisions
Young and low-income households are less likely to have employer-sponsored health insurance
Most individuals would share their health data in exchange for lower premiums
Health insurance mobile apps are gaining traction
Seniors are significantly less likely to have dental insurance
HEALTH INSURANCE OWNED 
Likelihood of medical and prescription coverage increases with both age and income
Figure 16: Medical insurance and prescription drug coverage, by age and income, August 2018
Hispanic and Black populations are less likely to have several types of insurance
Figure 17: Ownership of various insurance types, by race and ethnicity, August 2018
Seniors are significantly less likely to have dental insurance
Figure 18: Dental insurance ownership, by age, August 2018
Southern regions have the lowest rate of medical insurance coverage
Figure 19: US Census Bureau geographical regions
Figure 20: Medical insurance ownership, by region, August 2018
SOURCE OF COVERAGE
Young and low-income households are less likely to have employer-sponsored health insurance
Figure 21: Medical insurance ownership through employer, by age and income, August 2018
Individual insurance is most common among young consumers
Figure 22: Individual health insurance ownership, by age, August 2018
Most consumers with individual coverage purchased direct from an insurer
Figure 23: Medical insurance ownership, by age, August 2018
FACTORS IN HEALTH PLAN CHOICE
Monthly premiums and choice of doctors have the most impact on health insurance decisions
Figure 24: Important factors in health insurance purchase, August 2018
Many with employer-sponsored health plans have few options
Figure 25: Important factors in health insurance purchase, by age, August 2018
HEALTH PLAN BEHAVIORS
Younger consumers are more price conscious, do more online research
Figure 26: Health plan behaviors regarding obtaining multiple opinions, by age, August 2018
One third of consumers needed help choosing the right healthcare plan
Figure 27: Assistance needed in choosing a health plan, by age, August 2018
Figure 28: USAA statement insert, February 2018
Nearly 60% of consumers prefer to receive multiple opinions before taking action
Figure 29: Health plan behaviors regarding obtaining multiple opinions, by age, August 2018
Health insurance mobile apps are gaining traction
Figure 30: Medical insurance ownership, by gender, race, and ethnicity, August 2018
Figure 31: BlueCross BlueShield of Illinois direct mailing, December 2017
Most individuals would share their health data in exchange for lower premiums
Figure 32: Willingness to share health data, by age, August 2018
Young consumers are less loyal to traditional insurers
Figure 33: Willingness to use nontraditional insurers, by age, August 2018
ATTITUDES TOWARD HEALTH INSURANCE
Four out of five consumers believe health insurance is the most important employee benefit
Figure 34: Health insurance as an employee benefit, by marital and parental status, August 2018
Most feel health insurance is a right, not a privilege
Figure 35: Health insurance as a right, by generation, August 2018
Most consumers are satisfied with their coverage and doctors
Figure 36: Satisfaction with health plan doctors and coverage, by age, August 2018
Despite complexity, consumers (especially older Americans) are largely confident in their understanding of health insurance
Figure 37: Understanding of coverage and ability to find information, by generation, August 2018
INCENTIVES
More than 40% of consumers utilize insurance wellness programs
Figure 38: Wellness program usage, by gender, race, and ethnicity, August 2018
Nearly 80% of consumers believe health insurance providers should reward customers for healthy behaviors
Figure 39: Attitudes concerning rewards for healthy behaviors, by age, August 2018
Cash has the greatest potential to motivate healthy behavior
Figure 40: Healthcare incentives toward healthy behaviors, August 2018
TURF Analysis
Figure 41: TURF analysis – Healthcare incentives toward healthy behaviors, August 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations