Personal health management The rise of the empowered consumer

Transcription

1 Personal health management The rise of the empowered consumer Consumer Health Experience Radar 2015

2 Contents The changing expectations of healthcare consumers 1 Today s consumers want to take charge of their health 1 What consumers told us 3 The seven healthcare trends underlying our research 5 Meet your plan members 6 Overview of the health plan groups 7 Private insurance Single 7 Private insurance Family 8 Medicare Advantage 9 Exchange customers 10 How to reach today s healthcare consumers 28 Alternative care providers/new entrants: Increase your visibility, move beyond primary care 29 Wearables manufacturers: Expand your target market 29 About our research 30 How we developed our insights 30 Who we surveyed 30 Why these consumers? 30 Contributors 32

3 The changing expectations of healthcare consumers Today s consumers want to take charge of their health We asked: What do you value most about your healthcare experience, and how much more responsibility would you accept in exchange for lower premiums? Based on feedback from the roughly 2,300 consumers we surveyed, it s clear that consumers want to rely more on themselves for managing their health. And as they assume a larger share of costs, consumers also want to get the best value for their healthcare dollars, whether through the traditional healthcare system or via alternative service providers that are new entrants to the healthcare market (e.g., retail clinics, telemedicine service providers, etc.). They answered: Proactive health management, value for dollars, excellent service Consumers are getting smarter and more proactive about managing their health themselves. Armed with the Internet and a growing array of digital tools to monitor and improve their health, they re no longer content to rely solely on a doctor s advice. While almost half still go straight to the doctor when they face a health issue, one-third go online to research their symptoms before seeking medical care. Some visit urgent care clinics or pursue other forms of alternative care an option customers love once they try it, but is unfamiliar to most due to a lack of mainstream advertising and promotion. Today s healthcare consumers are also focused on value. If given the choice, they are willing to take on more risk and responsibility for managing their health in exchange for lower monthly health insurance premiums. But while most consumers are costconscious, there s a split between those who want to pay more for higher quality care and those who prefer to spend less for good enough care. Whether focused on quality or value, healthcare consumers expect to be treated well. Trained by the retail industry to expect top-notch service, and empowered with tools to manage their own health, consumers have little patience for a poor healthcare experience. And when it occurs, they ll often blame the brand or institution, not the person who provided the care. How can you reach these empowered consumers? No single approach will appeal to all healthcare consumers. Each segment has unique characteristics that require tailored solutions. But our research suggests that payers and providers can apply three key approaches that will have broad consumer appeal: Personal health management The rise of the empowered consumer 1

4 Give them tools to manage their health. Make it easier for consumers to monitor their health stats, track their fitness activity and progress, and manage chronic illnesses. Encourage or even subsidize the use of wearables, and enable plan members to share their fitness and wellness data with their doctors, making healthcare a team effort. Provide self-diagnosis tools and telemedicine options, to help consumers determine if they need to seek in-person care for their illness and to reduce care costs. Offer self-service options that enable consumers to perform common health-related tasks on their own, such as refilling prescriptions and scheduling follow-up visits. Help them to be proactive. Allow consumers to opt in to more comprehensive, proactive disease testing to maintain their health and avoid problems in exchange for a discount on their health insurance premiums. Provide proactive health warnings or alerts based on their activity data so they can avoid making potentially damaging lifestyle choices. Make care convenient. Adopt lessons from retail clinics, which succeed in part by catering to customers busy schedules and in the process, delivering great customer experiences. Making care convenient (e.g., by offering scheduled or drop-in appointments on evenings and weekends) can help strengthen brand loyalty and attract new customers. Even more important, making care convenient can help to eliminate bad customer experiences, which play a more important role in shaping brand perceptions and determining customer loyalty. Personal health management The rise of the empowered consumer 2

5 What consumers told us Passive is out, proactive is in. Consumer health intelligence is increasing rapidly. The traditional concept of passive, qualitative wellness is being replaced by a proactive, quantitative approach called personal health management (PHM), with empowered consumers taking more responsibility for their healthcare. Armed with digital devices, consumers are monitoring key health stats on a regular basis, from weight and blood pressure to the number of steps they take each day. And they are proactive about maintaining their health: three in five of those we surveyed push themselves with challenging health goals, and almost half (46%) frequently reach their goals. In striving to achieve their goals, they are driven by personal satisfaction (89%), the ability to track progress quantitatively (71%), and validation from their doctors that they re on the right track (69%). Customer satisfaction is fragile, and brands get blamed for bad experiences. Based on our research, consumers generally like the people and institutions involved with their healthcare, but only two in five are satisfied with the medical advice they receive, and 45% say they have never had a great healthcare experience. Positive experiences are overwhelmingly credited to the person who administered care (63%), while poor experiences are blamed on the institution either the organization itself (44%) or the fees it charged (38%). Brands get little credit for great care but most of the blame when care is poor. Consumers agree on what they can and can t accept in healthcare We delved into what consumers value the most about their healthcare, and what changes they would be willing to make in exchange for lower premiums. When asked to create their ideal healthcare plan, consumers agreed on the most important feature: being able to see a doctor within 24 hours of getting sick. They also value the ability to choose their doctors. However, they showed a willingness to take on more risk and responsibility for managing their health in exchange for a lower premium (~5% average savings per consumer). That includes accepting more preventive screening tests (and the collection of additional personal information that accompanies testing); virtual consultations for follow-up appointments; and online self-service tools for simple tasks like prescription refills in exchange for a discounted health insurance premium. but are split on how to approach it The majority of consumers (56%) are cost-conscious when it comes to care, but a sizable segment of the population (38%) is willing to pay for the highest quality care they can get. In addition, consumers fall into two camps when handling health issues: almost half (48%) go straight to their doctor, but nearly a third (32%) research their symptoms online first before seeking medical care. What do you track monthly? 83% weight 55% blood pressure 55% caloric intake 30% sleep patterns 24% steps What they want 24 See a doctor within 24 hours Get care in a doctor s office from reputed health company Choose any doctor they want Receive health advice only when requested What they don t want Retail brands/facilities replacing doctors/hospitals Limits on which doctors they can choose for care 2 Unsolicited health alerts/ warnings from doctors Personal health management The rise of the empowered consumer 3

6 While most consumers are proactive about managing their health, 9% don t engage in any preventive care, and 7% of consumers who purchased coverage through healthcare exchanges avoid care altogether because of the costs involved. As the cost of healthcare becomes increasingly prohibitive, this care-apathetic population is likely to grow quickly. Alternative care and wearable devices: Just outside the mainstream Consumers of alternative care 1 in particular, those who receive care at nontraditional facilities such as walk-in clinics (the most popular venue) generally love the experience, but more than half of patients (53%) have never visited an alternative care facility. Lack of awareness is the main reason. Only one in five customers learn about alternative care options through marketing; instead, they find this option most often through word of mouth (40%) and online research (28%). How many feel that alternative care options are the same or better than typical doctors/hospitals in the following categories? 94% Proximity 91% Customer Service Like alternative care, wearable devices have not yet reached the mainstream, but this is likely to change as comfort with technology grows. Less than 10% of the consumers we surveyed own a health-related wearable device, but of the 90%+ who don t, one in five have considered buying such a device. In addition, while 84% of those interested would prefer a sub-100 wearable, 15% would be willing to pay 200 for a more stylish model with advanced features. Most consumers are digitally savvy: 74% of those we surveyed go online multiple times a day, 83% say they have some comfort with mobile technology, and more than half (52%) consider themselves active mobile users. 89% Convenience 88% Quality 82% Cost 81% Aesthetics 1 For purposes of our research, we defined alternative care as follows: "Companies not normally associated with healthcare offering health-related services. Examples include drugstores & supermarkets with walk-in medical clinics, phone/online-based services that allow customers to virtually consult with a licensed doctor at any time, etc." Personal health management The rise of the empowered consumer 4

7 The seven healthcare trends underlying our research PwC identified seven major trends that are influencing changes in health-related consumer behavior. These trends served as the foundation for the development of our survey questions: 1. Care as commodity: A new generation of value-conscious consumers is treating healthcare like any other purchase. They are seeking the best deal, with little loyalty to brands or providers. 2. More empowered healthcare consumers: Today s empowered consumers track their vitals, research symptoms online, and self-diagnose rather than rely solely on providers to diagnose and treat illnesses. 3. Higher share of cost burden: Healthcare is getting more expensive and consumers are sharing more of the cost burden. For many consumers, healthcare is changing from a given to a discretionary expense requiring a cost-benefit analysis. 4. More alternative care services from non-traditional players: Telemedicine start-ups, retail clinics, at-home medical kits, and more: Consumers have a growing number of options for managing their care. 5. Proliferation of health-tracking technology: The exploding wearables industry is enabling consumers to analyze their health with a level of precision traditionally reserved for doctors, and it s changing the definition and capabilities of remote patient monitoring (RPM). 6. More insured consumers, thanks to the ACA: Millions of first-time customers are now buying health insurance, creating an opportunity for established payers and providers to grow their customer bases and for non-traditional companies to disrupt the industry by offering innovative services at compelling price points. 7. Increased demand for primary care: With more doctors choosing specializations over general medicine, the demands on primary care practitioners have never been greater. This is forcing many states to expand PCP laws to enable RNs and pharmacists to diagnose illnesses and prescribe treatments. Personal health management The rise of the empowered consumer 5

8 Meet your plan members Different consumers, unique needs and preferences Understanding the differences among healthcare consumers, in terms of needs, preferences, and approaches to healthcare, is essential to attracting and retaining customers. To help payers and providers gain an understanding of the needs of healthcare consumers, we leveraged our Experience Radar methodology to identify four categories of consumers, based on the type of health insurance plans they purchased. We hypothesized, and our research confirmed, that each of the four groups represents a different approach to healthcare. We also found important differences in the responses of consumer segments within each of these groups: Private health insurance customers (single person) Private health insurance customers (family) Medicare Advantage customers Health Insurance Exchange customers We explored how consumers in each segment within the four plan groups currently manage their health, what they value most in healthcare, where they re willing to accept more risk, and what customer experience features would most resonate with them. Their responses, detailed on the following pages, provide insights that payers and providers can use to tailor their marketing efforts and the customer experience efforts to meet the unique needs and preferences of each segment within each health plan group. Personal health management The rise of the empowered consumer 6

9 Overview of the health plan groups Private health insurance customers (single person) Fitness-focused Fay Fay is primarily a Millennial who lives in a major southern city. She s digitally savvy, passionate about staying healthy, and searching for value. Fitness-focused Fay Healthy and cost-conscious 27% of consumers in this plan group Wary Walter Walter is primarily a Baby Boomer who lives in a rural town. He tracks metrics to manage his chronic illness and visits a traditional provider when there s a problem. He wants the best quality of care he can afford on his limited income. Wary Walter Focused on managing illness 25% of consumers in this plan group Trusting Terri Terri lives mainly in suburbs on the West Coast. He s healthy, tracks metrics such as weight and calories, and is considering using a wearable. Health is a priority, so he seeks the best care his insurance allows, from traditional providers. Trusting Terri Healthiness = happiness 24% of consumers in this plan group Preoccupied Paolo Paulo is mostly Gen X living in the Midwest. He s focused on his financial problems, and health isn t a priority for him. He s unhappy with his insurance and avoids care because of the cost, though he has visited a low-cost urgent care clinic. Preoccupied Paolo Healthy but at risk 23% of consumers in this plan group Personal health management The rise of the empowered consumer 7

10 Private health insurance customers (family) Driven Darin Darin is a largely a healthy Gen X consumer living in a Southern suburb. He tracks his health stats closely, often using wearables. He s happy with traditional care but also with new entrants such as the retail clinic he visited. He wants the best quality care available. Driven Darin Will pay for quality 24% of consumers in this plan group Conventional Carl Carl is predominantly a Baby Boomer who lives in a Midwestern town and has a chronic illness that s easy to manage. He s old school, preferring traditional care. He handles non-urgent health issues on his own and visits his doctor only in an emergency. Conventional Carl Old school 23% of consumers in this plan group Try-it-out Tori Tori is a mainly a healthy Baby Boomer or Gen X consumer who lives in a Midwestern suburb. He s casual about monitoring his health and ambivalent about his current care. He s pleased with alternative care but had to be convinced of its value. Try-it-out Tori Healthy but ambivalent about care 22% of consumers in this plan group Savvy Sam Sam is typically a healthy Millennial who lives in a moderate-sized city. She uses wearables to monitor her health and partly because of their cool factor. She values the social aspects of health. She s rarely ill, so it s unclear how she would manage health issues. Savvy Sam Trend-setter 17% of consumers in this plan group Novice Natalie Natalie is mainly a healthy Millennial who lives in a Northeastern town. She uses wearables to monitor her fitness. Because of her age, she has limited experience with healthcare, but she thinks the walk-in clinic she visited was inferior to a traditional doctor s office. She researches health issues online and seeks the lowest-cost care. Novice Natalie Stressed student 14% of consumers in this plan group Personal health management The rise of the empowered consumer 8

11 Medicare Advantage customers Healthy Hogan Hogan is mainly a healthy Baby Boomer who lives in a Midwestern suburb. She s digitally savvy and monitors her health stats regularly. She s ambivalent about traditional care and was impressed with the urgent-care clinic she visited. When possible, she ll search online to find self-treatments. Healthy Hogan Low-maintenance 41% of consumers in this plan group Disengaged Dani Dani is mainly a Baby Boomer who lives in a rural town in the Northeast. He has a chronic condition, but it s easy to manage, and he doesn t monitor his health. He seeks the cheapest care available but has never tried alternative options like retail clinics. Health is just not a priority for him. Disengaged Dani Apathetic with chronic illness 21% of consumers in this plan group Chronic-Care Cam Cam is typically a Baby Boomer who lives in a mid-size Southern city. She stays active and monitors her health stats often to manage her chronic illness. She likes to share her health data and would considering using a wearable. She s happy with her traditional care provider, and she seeks the most cost-effective care options that her insurance covers. Chronic-Care Cam Focused on managing chronic illness 20% of consumers in this plan group Spiritual Sai Sai is largely a Baby Boomer who lives in a metropolitan region in the West. He doesn t actively monitor his health stats but he stays active to ensure his health, which he views as the path to happiness. He s satisfied with his traditional care provider and has no interest in seeking alternative care. Spiritual Sai Values quality care to ensure happiness 18% of consumers in this plan group Personal health management The rise of the empowered consumer 9

12 Health Insurance Exchange customers Premium Paul Paul is typically a healthy Baby Boomer who lives in a small Northeastern town. He s retired but not yet on Medicare. He stays fit, pays for premium coverage, and is pleased with the care he receives from his traditional providers. He has no interest in alternative care options. Premium Paul Successful, wants the best 31% of consumers in this plan group Struggling Sue Sue is mostly a Millennial with a chronic illness. She only monitors her weight and blood pressure, but she s digitally savvy and has considered wearables. She sets easy fitness goals and values encouragement. She likes her doctors but not her low-cost insurance plan, which limits her options. She visits walk-in clinics but finds them disappointing. Struggling Sue Focused on managing chronic illness 26% of consumers in this plan group Restarting Rita Rita is typically a healthy Gen X consumer who lives in a Midwestern suburb. She only tracks her weight, and she has no interest in wearables. Rita is unhappy with the limited options her bare-bones insurance policy covers, but she can t afford the additional cost to visit a walk-in clinic. She tries to handle most health issues on her own. Restarting Rita Competing life priorities 24% of consumers in this plan group Aspirational Annie Annie is mostly a healthy Millennial who lives in a suburb near a mid-size Southern city. She monitors her fitness and has a strong interest in wearables, but she struggles to meet her health goals. She s more impressed with alternative care than with her traditional providers. To keep costs low, she tries to deal with health issues on her own or visit a low-cost clinic. Aspirational Annie Wants to improve her health 20% of consumers in this plan group Personal health management The rise of the empowered consumer 10

13 Fitness-focused Fay Healthy and cost-conscious Consumers like Fitness-focused Fay are passionate about monitoring their fitness and maintaining a healthy lifestyle. They frequently track health stats, including calories and steps taken, monthly sleep patterns, and BMI, and they set and often meet challenging health goals. These digitally savvy consumers use wearables to monitor their health, and they appreciate the social features of the technology. Consumers like Fay are generally happy with their doctors, specialists, pharmacists, and local drug stores, but they also want the cheapest care possible. They prefer to research their symptoms online before seeking care and to self-treat their issues when possible. They have sampled alternative care in the form of walk-in clinics but have been disappointed by the cost and aesthetics of the facilities. How can you reach consumers like Fitness-focused Fay? Make it easier for them to track their fitness and determine if they re on track with their goals through remote monitoring of their wearables data. Empower them with self-diagnosis tools to help them determine if they need to seek in-person care for their illness (versus making that decision on their own). Give them more self-service and telemedicine options so they can perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. Allow them to opt in to more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums. 1.4X likely to be healthy w/no chronic issues 20-50% more likely to be ì somewhat satisfied w/current care 50% more likely to be cost-conscious with care 2.8% cost difference between ideal (discounted) and typical plan 1 Meet Fitness-focused Fay (27% of consumers in this segment) Age (Millennial) Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious Female African-American Graduate degree Newly employed K High Major southern city Healthy No These details are representative of the typical healthcare consumer in this segment. 1 In our survey, the features of the typical plan were the same for each of the four plan groups. Only the cost of the typical plan differed, reflecting the varying demographics and risk profiles of consumers in each plan group. Hypothetical discounts were offered to consumers in exchange for taking on more responsibility/accountability for instance, agreeing to more preventive screening or accepting telemedicine rather than in-person doctor visits. Personal health management The rise of the empowered consumer 11

14 Wary Walter Focused on managing illness Wary Walter and consumers like him track their weight and blood pressure daily to manage their chronic illness. They also track calories occasionally when urged by a doctor. These consumers go online for health information but they re not mobilesavvy. They set and achieve modest fitness goals now and then, but they re focused mainly on managing their illness. Consumers like Walter are extremely satisfied with their doctors, specialists, pharmacists, drug efficacy, hospitals, health insurance, and advice they receive. They value analyzing their vitals and appreciate the encouragement that their doctors provide. They have never seen an alternative care practitioner, since alternative care clinics aren t equipped to handle complex chronic illnesses like theirs. Consumers in this segment go straight to the doctor when they have a health issue. Despite limited means, they want the best quality care possible so they can prevent additional health problems. How can you reach consumers like Wary Walter? Make it easier for them to manage their chronic illness and determine if their tracked vitals are within healthy limits, possibly with the help of simplified wearable technology. Offer them more frequent check-ins with a doctor via telemedicine to promote better adherence to treatment plans and provide positive encouragement. Give them more self-service options to perform common health-related tasks (e.g., refilling a prescription) simply and quickly. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, in order to prevent additional chronic health issues from arising. Meet Wary Walter (25% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious 55+ (Baby Boomer) Male Caucasian High school Retired 25-50K Low Rural town Chronic illness Yes 3.1X likely to have a difficult to manage chronic condition 40-90% more likely to be ì very satisfied w/current care 70% more likely to want the highest quality care possible 4.4% cost difference between ideal (discounted) and typical plan These details are representative of the typical healthcare consumer in this segment. Personal health management The rise of the empowered consumer 12

15 Trusting Terri Healthiness = happiness Consumers like Trusting Terri monitor their health carefully. They track their weight and calories weekly, and their steps and BMI regularly, and have strongly considered using wearables. These consumers are highly motivated to reach their health goals and often do so. They value the encouragement of their friends, family, and doctors, and they like being able to track their progress. Their health has a major effect on their happiness, so when faced with a health issue, they seek the best care available through their insurance. Consumers in this segment are very pleased with their current healthcare. They trust their doctors, and they re satisfied with the advice they receive, treatments prescribed, and specialists they consult. They have visited alternative care clinics on the advice of their doctors, but saw no difference in cost or convenience and felt that the quality of care was lower than the care they receive from their regular doctors. How can you reach consumers like Trusting Terri? Subsidize wearables so that health tracking is integrated into their regular fitness/wellness routines and their data is made available to their doctors. Provide proactive health warnings or alerts based on their activity data so they can avoid making potentially damaging lifestyle choices. Give them more telemedicine options so they can connect with their doctors more conveniently when needed and complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. Offer them more comprehensive/proactive disease testing so they can continue maintaining their healthy lifestyles. 1.5X likely to be healthy w/no chronic issues 20-50% more likely to be ì somewhat satisfied w/current care 20% more likely to want the highest quality care possible 4.6% cost difference between ideal (discounted) and typical plan Meet Trusting Terri (24% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious Asian Graduate degree K High West Coast suburb Healthy Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 13

16 Preoccupied Paolo Healthy but at risk Consumers like Preoccupied Paolo don t have the time or energy to monitor their health, although they occasionally check their weight. They don t value motivating tactics, such as encouragement or incentives, because maintaining health and fitness is simply not a priority for them. They re focused mainly on staying afloat financially. Paolo and his cohorts are healthy but generally avoid care because of the costs involved. This could make them vulnerable to chronic health issues down the line. Consumers like Paolo are not satisfied with their current healthcare. They re ambivalent about the people and institutions involved and dissatisfied with their health insurance, which makes them reluctant to seek care. On the recommendation of family members, they do visit urgent care clinics, and they value the proximity and lower cost of these facilities. How can you reach consumers like Preoccupied Paolo? Offer them cost-effective and simple options for engaging in preventive care, possibly by offering coverage of their visits to walk-in clinics or providing remote support. Give them low- or no-cost self-service resources that enhance their health intelligence and help them to manage their lifestyles with a minimal time commitment. Sell them on the benefits of telemedicine in terms of cost and speed so they become more engaged customers and make their health a higher priority. Explain to them the long-term benefit of comprehensive, proactive disease testing to help prevent complex (and costly) chronic illness. 1.5X likely to be healthy w/no chronic issues % more likely to ì feel ambivalent about current care 66% are cost-conscious with care 4.2% cost difference between ideal (discounted) and typical plan Meet Preoccupied Paolo (23% of consumers in this segment) Age (Gen X) Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious Male Hispanic Four-year college degree Employed 0-50K Low Midwest Healthy These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 14

17 Driven Darin Willing to pay for quality Consumers in Driven Darin s segment monitor their health stats closely, often tracking weight, blood pressure, steps, sleep patterns, and calories. These digitally-savvy consumers are interested in using wearables for self-improvement, and they value the ability to analyze their health data. They desire encouragement, which helps them to achieve their goals, but see little value in social incentives or progress sharing. Consumers like Darin are generally happy with their current care and fairly satisfied with the total healthcare experience; they like the institutions they visit, doctors they see, and advice they receive. But they re also satisfied with alternative care, and feel that the cost, convenience, and customer service are superior to those provided by the typical doctor and hospital. They prefer to research non-threatening health issues online before seeking medical care, but when care is needed, they want the highest quality available. How can you reach consumers like Driven Darin? Show them how to extract maximum value from wearables as tools to help them monitor their health stats and achieve their health goals. Allow them to automatically share their activity data with their doctors to enable more precise feedback, health coaching, and proactive health alerts. Give them robust self-service and telemedicine tools that enable them to perform common tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily and to access their primary care physicians easily when needed. Offer them more comprehensive, proactive disease testing so they feel that they re doing all they can to maintain their health and prevent the emergence of chronic health issues. Meet Driven Darin (24% of consumers in this segment) Age (Gen X) Gender Male Ethnicity Asian Education Graduate degree Employment Employed Income 150K+ Digital literacy High Lives in Southern suburb Health status Healthy Religious Ambivalent 1.2X likely to be healthy w/no chronic issues 20-30% more likely to be ì somewhat satisfied w/current care 30% more likely to want the highest quality care possible 4.2% cost difference between ideal (discounted) and typical plan These details are representative of the typical healthcare consumer in this segment. Personal health management The rise of the empowered consumer 15

18 Conventional Carl Old school, values traditional care Consumers like Conventional Carl are not concerned about or interested in tracking health stats. Occasionally they monitor their blood pressure to manage their chronic illness, but they are not tech-savvy. Carl and his peers are very happy with all aspects of their current care (doctors, hospitals, etc.). They are old school consumers who prefer to use traditional healthcare to address issues. They are dissatisfied with alternative care, associating it with inferior quality and customer service compared to traditional care. Consumers like Carl rarely set health goals, but if they do, it s for their own personal satisfaction, nothing more. For major health issues, they will seek the best care possible, but they ll let non-emergency issues pass. How can you reach consumers like Conventional Carl? Offer them simple self-service tools and telemedicine support to help them manage their chronic illness and reach their doctors when needed. Engage them in health education around the importance of maintaining their fitness to avoid further complications from their chronic illness. Make it easier for them to determine if their vitals are within healthy limits, possibly with the aid of simplified wearable technology. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent additional chronic issues from arising. 1.6X likely to have an easy-to- manage chronic condition 20-30% more likely to be ì very satisfied w/current care 30% more likely to want the highest quality care possible 5.2% cost difference between ideal (discounted) and typical plan Meet Conventional Carl (23% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious 55+ (Baby Boomer) Male Caucasian Graduate degree Retired 25-75K Low Midwestern town Chronic illness (easy to manage) Ambivalent These details are representative of the typical healthcare consumer in this segment. Personal health management The rise of the empowered consumer 16

19 Try-it-out Tori Healthy but ambivalent about care Consumers like Try-it-out Tori don t focus on tracking their health, but they re somewhat tech-savvy, and they do monitor their blood pressure and sleep patterns sporadically. These consumers are ambivalent about the care they re receiving and in some cases are unsatisfied when compared to other segments. They re willing to try other options, and they re pleased with alternative care facilities such as walk-in clinics, finding them superior to traditional care in terms of quality, cost, proximity, aesthetics, and customer service. Consumers like Tori don t often set health goals, and the ones they do set are easy to achieve without any support. When facing a medical issue, these consumers seek out the most cost-effective treatment possible. How can you reach consumers like Try-it-out Tori? Give them simple, low-cost self-service tools that will empower and encourage them to more closely monitor their health, possibly with the help of subsidized wearables. Adopt the convenience and customer service features of retail clinics to provide a compelling experience that can win their business. Give them more telemedicine options so they can connect with their doctors more conveniently when needed and complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent chronic health issues from developing. 1.2X likely to be healthy w/no chronic issues 20% more likely to be ì satisfied w/current care 30% more likely to be cost-conscious with care 5.8% cost difference between ideal (discounted) and typical plan Meet Try-it-out Tori (22% of consumers in this segment) Age (Gen X, Baby Boomer) Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious African-American Two-year college degree Employed 25-75K Moderate Midwestern suburb Healthy Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 17

20 Savvy Sam Trend-setter Consumers like Savvy Sam use wearables to monitor their health stats more precisely, maintain their fitness, and because of the devices cool factor. These consumers value the social aspects of fitness, such as sharing, incentives, encouragement, and peer competition. They also value the ability to analyze their wearable data to help them achieve their health goals. Because consumers in this segment have no chronic illness and rarely get sick, their approach to treating health issues is unclear. Some are ambivalent about their current healthcare experience while others are somewhat satisfied, especially with their local pharmacies and hospitals. Based on their doctors recommendations, consumers in this segment have visited alternative care facilities. They liked the aesthetics of the facilities but otherwise were indifferent about the experience. How can you reach consumers like Savvy Sam? Allow them to automatically share their activity data with their doctors to enable more precise feedback, health coaching, and proactive health alerts. Provide simple tools for self-reporting key health metrics to their doctors, to improve wellness tracking and enable proactive issue resolution. Give them robust self-service and telemedicine tools so they can complete simple tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily and connect with their doctors more conveniently when needed. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to help prevent chronic illness from arising. 1.2X likely to be healthy w/no chronic issues 20-50% more likely to be ì somewhat satisfied w/current care 58% are cost-conscious with care 4.2% cost difference between ideal (discounted) and typical plan Meet Savvy Sam (17% of consumers in this segment) Age (Millennial) Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious Asian Two-year college degree 25-50K High Moderate-sized city Healthy These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 18

21 Novice Natalie Stressed student Consumers like Novice Natalie focus on tracking calories regularly and checking weight and BMI monthly to ensure healthiness. They are digitally savvy and use wearables to monitor their fitness levels. These consumers set easy fitness goals. They value the social aspects of fitness including incentives, competition, and encouragement sharing their progress to keep them motivated. Consumers in this segment are somewhat satisfied with their doctors and pharmacies, but given their age, they don t have many points of comparison. They have visited urgent care clinics based on the recommendation of family or friends, but felt that the cost and aesthetics of these alternative care facilities were inferior to those of a traditional doctor s office. Natalie and her peers are cost-conscious about their care. They will research their symptoms online before seeking care, and if they need treatment, they ll pursue the cheapest option available. How can you reach consumers like Novice Natalie? Subsidize wearables so they can track their fitness more effectively, and allow them to share activity data with their doctors, to enable better health coaching and proactive health alerts. Empower them with self-diagnosis tools that help them determine if they need to seek in-person treatment for their illness (versus making that decision on their own). Give them more telemedicine and self-service options so they can complete common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. Allow them to opt in to more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums. Meet Novice Natalie (14% of consumers in this segment) Age (Millennial) Gender Ethnicity Education Employment Female Caucasian Some college Student Income < 25K Digital literacy Lives in Health status Religious High Northeastern town Healthy No 1.5X likely to be healthy w/no chronic issues 20-30% more likely to be ì somewhat satisfied w/current care 20% more likely to be cost-conscious with care 3.6% cost difference between ideal (discounted) and typical plan These details are representative of the typical healthcare consumer in this segment. Personal health management The rise of the empowered consumer 19

22 Healthy Hogan Low maintenance Consumers like Healthy Hogan diligently track many health stats, including BMI, steps taken, and especially caloric intake, which they monitor daily. These consumers are ambivalent about their current care and only somewhat satisfied with their primary hospital and the medical advice they receive. However, they are highly impressed with alternative care services. They have used urgent care clinics and found the experience to be equivalent to or better than traditional care in all aspects. Consumers in this segment are committed to their health goals and consider access to their health data critical to achieving those goals. They like to analyze data, and they value encouragement. These digitally savvy consumers rely on online research to help them find self-treatments for non-life-threatening health issues and avoid major medical costs. How can you reach consumers like Healthy Hogan? Make it easier for them to track key fitness metrics by subsidizing wearables and integrating the devices into their wellness programs. Give them low- or no-cost self-service and telemedicine tools that make it easier for them to access health resources, diagnose issues, and contact their doctors. Consider offering coverage for walk-in clinics to help reduce their healthcare bills and generate loyalty for covering a service they value. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to prevent the development of chronic health issues. 1.4X likely to be healthy w/no chronic issues, but occasionally sick 20% more likely to be somewhat ì satisfied w/current care 54% are cost-conscious with care 8.7% cost difference between ideal (discounted) and typical plan Meet Healthy Hogan (41% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious 65+ (Baby Boomer) Caucasian Four-year college degree Retired 50-65K High Midwestern suburb Healthy These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 20

23 Disengaged Dani Apathetic with chronic illness Disengaged Dani and his segment peers don t monitor their health at all; they never track BMI, steps taken, sleep patterns, or weight. They do go online, but they re not mobile-savvy. They have little motivation to pursue health goals, although they occasionally set and reach easy goals. They rely solely on personal satisfaction to motivate them. Consumers like Dani typically are dealing with a chronic condition that is easy to manage, and they seek the cheapest health care options available. These consumers are ambivalent about their current care, and only somewhat satisfied with their primary hospital and advice they receive. Given the low priority they assign to their health, it s not surprising that they ve never pursued alternative care. How can you reach consumers like Disengaged Dani? Give them low- or no-cost self-service resources that improve their health intelligence and help them to manage their chronic illness with a minimal time commitment. Engage them in health education around the importance of maintaining their fitness, to avoid further complications from their chronic illness. Sell them on the benefits of telemedicine, in terms of cost and speed, so they become more engaged customers and make their health a higher priority. Explain to them the long-term benefit of comprehensive, proactive disease testing to help them avoid costly complications from their chronic illness. 1.2X likely to have an easy-to- manage chronic condition 60% are generally satisfied ì w/current care 30% more likely to want cheapest care option possible 10.9% cost difference between ideal (discounted) and typical plan Meet Disengaged Dani (21% of consumers in this segment) Age Gender Ethnicity Education Employment 65+ (Baby Boomer) Some college (no degree) Retired Income < 50K Digital literacy Lives in Health status Religious Moderate Rural Northeastern town Chronic illness (easy to manage) Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 21

24 Chronic-Care Cam Focused on managing chronic illness Consumers like Chronic-Care Cam track their health stats regularly (including daily weight checks) and make sure they stay active in order to manage their difficult chronic illness. These consumers are digitally savvy and would be interested in using wearables. They value the ability to analyze their health stats to ensure treatments are successful, and they like sharing their health data with their loved ones. Cam and her cohorts are highly satisfied with the care they receive, including the advice they re given by their doctors and pharmacists. They do not use alternative care services, since they require the care of specialists to manage their chronic illness. Consumers like Cam are cost-conscious about their healthcare. Due to the complexity of their health conditions and the expenses involved, they seek out the most costeffective treatment options covered by their insurance. How can you reach consumers like Chronic-Care Cam? Make it easier for them to manage their chronic illness and determine if their tracked vitals are within healthy limits possibly with the aid of subsidized wearable technology Offer them more frequent, lower-cost check-ins with a doctor via telemedicine to assess their progress toward achieving health-related goals. Give them more self-service options to enable them to perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily, and to share their progress with their families. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health care premiums, to prevent complications from their chronic illness. 1.2X likely to have a difficult to manage chronic condition 20-60% more likely to be ì somewhat satisfied w/current care 20% more likely to be cost-conscious with care 8.2% cost difference between ideal (discounted) and typical plan Meet Chronic-Care Cam (20% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious 65+ (Baby Boomer) Some college (no degree) Retired 65-95K High Mid-size Southern city Chronic illness (difficult to manage) These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 22

25 Spiritual Sai Values quality care to ensure happiness Consumers like Spiritual Sai do not actively track much health data, but they ensure that they maintain an active lifestyle by monitoring their steps monthly. They view health as a path to happiness, and set goals accordingly. They value encouragement from their doctors and the ability to analyze their health data to ensure they are on track. Consumers in this segment are very satisfied with their care, especially the quality of their specialists, medical advice, and health insurance. They usually seek the highest quality of care from their doctors, and they re willing to pay a premium for it. Because of their satisfaction with their current care, they do not pursue alternative care services. How can you reach consumers like Spiritual Sai? Educate them on the value of regularly tracking health stats as a means of better monitoring their chronic illness. Possibly recommend the use of wearables. Offer them more frequent check-ins with their doctor via telemedicine to assess their progress against their health goals and encourage healthy behavior. Give them more self-service options to enable them to perform common health-related tasks (e.g., refilling prescriptions and scheduling follow-up appointments) quickly and easily. Offer them more comprehensive, proactive disease testing in exchange for a discount on their health insurance premiums, to prevent complications from their chronic illness. 58% have a chronic condition 20-30% more likely to be ì very satisfied w/current care 20% more likely to want highest quality care possible 8.1% cost difference between ideal (discounted) and typical plan Meet Spiritual Sai (18% of consumers in this segment) Age Gender Ethnicity Education Employment Income Digital literacy Lives in Health status Religious 65+ (Baby Boomer) Retired 95K+ Moderate Western metropolitan region Yes These details are representative of the typical healthcare consumer in this segment. * Data does not support a single classification. Personal health management The rise of the empowered consumer 23