Creative Cost Containment for Healthcare Premiums

Implications: There are ways to control costs, reduce premiums and provide access to quality healthcare plans. Creativity in plan design and customization of plans are key areas insurers are exploring in order to meet the demands of current trends and to build and retain customer loyalty.

Analysis: The health insurance industry has traditionally treated the market in a mass approach. The advancement of Consumer Driven Healthcare has forced some changes, including how insurers view their market. Customer demand for customization and individualism has spurred on a race in creativity, revenue generation and market competition, as we are seeing with this pilot program. I don't think it's a minute too soon. All consumer trends point to a menu approach. Many of the carriers have begun to respond. In terms of providing stronger value propositions, setting up health savings accounts, segmenting markets and adjusting pricing, personalized benefit design, etc. This is just the beginning. Demands of transparency and some of the recent legislation that has taken effect on transparency will continue to drive innovation and personalization of our approaches to healthcare services and funding.