Three ways the health insurance industry must evolve

RakowskiHealthcare reform and the increase of high-deductible health plans (HDHPs) have resulted in many substantial changes in the healthcare industry. Among the most significant changes today is the transformation of patients to health consumers.

Related: Eight ways to retain high-deductible members

These new health consumers have more information about healthcare available to them, are becoming more conscious about their healthcare spending, and are taking a more active role in their care.

They want more price transparency, particularly as they encounter higher deductibles. In a recent PricewaterhouseCoopers (PwC) study, 83% of employers reported offering a high-deductible plan. These plans, by nature, encourage consumers to consider all options before selecting and utilizing healthcare services.

Related: Consumerism increases retail opportunities and access to coverage and care

Healthcare “consumerism” is only one of many areas of focus for the industry. A call to action from industry stakeholders is prevalent, largely based on the fact that the U.S. spends more than $2.9 trillion annually (or $9,255 per person) on healthcare, more than any other country. Even so, Bloomberg ranks the U.S. at a lowly 33^rd on its “World's Healthiest Countries” list.

To reduce costs and create a healthcare system that works better for consumers, the healthcare industry needs to cater to the consumer, become more connected, and better manage risk. The following outlines some of the ways U.S. healthcare can and should evolve.

 

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