Health Intelligence Partners: Market Signals Briefing October Webinar

On October 16, Leavitt Partners held a Market Signals Briefing webinar as part of a bimonthly series produced by Health Intelligence Partners (HIP). Designed to provide health care stakeholders with timely perspectives on current market events and to identify what matters, HIP Market Signals Briefings bring experts together to sift through the noise in the market and identify key signals worthy of attention.

Leavitt Partners’ business leaders and senior advisors provided their perspectives on the potential for insurance disruption, reflecting on the Trump administration’s recent executive order (EO) on Medicare, a 2017 EO on short-term limited duration plans (STLD), and market activity from large employers and retailers innovating in health services and benefit design.

Highlights include:

  • The panel reviewed the EO’s primary goals of not only promoting Medicare Advantage, but also elevating Medicare payments to more closely match commercial insurance payments. Panelists discussed how in contrast to prior administrations that have approached EOs as organizational documents that provide direction for a task force to pursue, this administration has approached EOs with more specific policies to execute. In discussing the EO’s potential impact, the panel highlighted the potential impact on the federal budget as well as strategies of insurance plans.
  • Leveraging Leavitt Partners’ data (below), the panel reviewed interest in STLD plans. Though uptake has not yet been high, market demand exists for STLD plans—especially from small businesses and low-income individuals. In discussing the potential impact of STLD plans, the panel addressed the potential challenges of these plans. Specifically, in the absence of “sufficient” health literacy and marketing guard rails, these plans may increase consumers’ risk for a financial surprise. Consequently, political backlash against these plans may grow. Leavitt Partners’ survey data shows that younger individuals who live in large cities and have a current individual market plan are more interested in an STLD plan. Older, higher-income individuals with 3+ chronic conditions are least interested.
  • Consumer Interest in Short-Term Limited Duration Plans
  • The panel wrapped up its briefing by focusing on the health care initiatives of Walmart and Amazon that reflect their role as employers and as retailers providing new services. The panel discussed the potential for disruption and scalability, as well as the potential impact on patients’ relationships with the primary care providers, especially patients with chronic illnesses. The panel noted that whether retail solutions such as in-store clinics can effectively lower costs and improve quality may in part rely on their interoperability and connectivity to the rest of the health care system.
  • Walmart and Amazon health care

The HIP Market Signals Briefing is now available to all active LP clients, including HIP members. To learn more about engaging in the dialogue through HIP, including the Market Signals Briefing webinar series, please contact Jennifer Colamonico at jennifer.colamonico@leavittpartners.com.