Your Roadmap to Health Plan Success

In the United States, health insurance is a top priority for a majority of individuals. According to the Census Bureau, over 92% of the population had coverage at some point during 2022. People comb through their health plan options to ensure that the services they require are covered at a price they can afford. If a health plan fails to meet their needs, they will look elsewhere. For payers to remain competitive, it’s essential that they stay up to date on the latest healthcare trends and regularly evaluate their health plan success factors, as well as areas for improvement.

What Is Health Plan Success?

The concept of health plan success encapsulates achievements benefiting both members and health insurers. Success is measured in several ways, including:

• Member Engagement: The degree to which plan members actively utilize the offered healthcare services and resources.
• Member Satisfaction: The level of contentment and fulfillment felt by members with the provided services, coverage, and overall experience.
• Member Retention: The ability of the health plan to retain its members over time, indicative of satisfaction and perceived value.
• Healthcare Quality: The standard and efficacy of healthcare services provided within the plan (e.g., access to healthcare professionals, treatment outcomes, and adherence to clinical guidelines).
• Cost: The financial implications for both members (e.g., out-of-pocket expenses and premiums) and insurers (e.g., claims costs, administrative expenses, and profitability margins).

By meticulously evaluating these factors, stakeholders within the healthcare ecosystem can gauge the overall performance and viability of a health plan, thereby informing decisions to enhance effectiveness and ensure optimal health outcomes.

Why Does Understanding Health Plan Success Matter?

Understanding health plan success aids health insurance companies in identifying strengths and areas for improvement, enabling informed decision-making. In this article, we delve into:

• Elements that define health plan success
• Strategies for attaining health plan success
• Benefits of achieving health plan success
• Challenges and future trends in health plan success

Elements That Define Health Plan Success

Success factors in the healthcare payer industry include the following:

Comprehensive Coverage

This is one of the largest contributing factors to health plan success. Comprehensive coverage refers to a health plan that offers a variety of healthcare services, such as emergency care, primary care visits, maternity care, and mental health services. Casting a wide coverage net increases plan attractiveness for people with diverse and complex medical backgrounds. The more comprehensive a health plan is, the more likely members will use the services and stay with the plan.

Cost-Effective Benefits

According to the 2022 National Health Interview Survey, more than 1 in 4 adults reported delaying or not getting healthcare due to cost. Insurance coverage can help reduce the cost for services, but depending on a member’s plan, they may still end up paying out-of-pocket. That’s where cost-effective benefits come into play. A health plan success strategy should include offering affordable benefits so members can focus on getting the health services they need without worrying about how to pay for them. With nearly 1 in 10 U.S. adults currently owing medical debt, having a plan with cost-effective benefits can help mitigate financial strain and ensure accessibility to essential medical services.

Access to Quality Healthcare

Ensuring ease of access to medical services and coverage of essential healthcare services promotes member satisfaction and overall plan success. Insurers should have plans in place to stay abreast of the environmental, economic, and social barriers members face when accessing healthcare, plus strategies for breaking down those barriers so members can get the care they need.

Patient Satisfaction

Patient satisfaction is something insurers should look at closely when measuring success. Member contentment drives utilization of covered services and fosters long-term plan retention.

Provider Collaboration

Positive relationships with healthcare providers should also be on the checklist for any successful health plan. Providers can offer important insights into patient satisfaction and overall plan effectiveness.

Health Education and Wellness Programs

Implementing programs promoting health maintenance and wellness initiatives fosters member engagement and improves overall health outcomes. Successful programs typically include incentives for participation, such as discounts and rewards.

Technology and Data Analytics

The success of a health plan relies heavily on the technology and data it utilizes. Tools such as mobile applications and online portals play a crucial role in enhancing accessibility and communication for members. Thorough data analysis provides invaluable insights into member behavior, preferences, and trends, thereby equipping plans with essential knowledge to better cater to member needs.

Regulatory Compliance

Adherence to legal regulations is imperative for health plans. Failure to comply poses significant risks, including financial penalties, legal actions, and substantial harm to brand reputation. A successful health plan ensures compliance with the law, safeguarding the interests of both members and the insurer.

These are just a few components that contribute to a successful health plan. Effective member communication is another one—an area where Clarity has extensive expertise. Contact us today to dive deeper into our full suite of solutions that connect members with the information and care they need.

Strategies for Attaining Health Plan Success

Here are several key actions that contribute to the success of high-performing health plans:

Evaluate Partnerships

We mentioned above the importance of provider collaboration, underscoring the need to assess your existing relationships with providers to identify areas of strength and potential areas for improvement. A few notable examples of successful payer-provider partnerships include Banner/Aetna, Cleveland Clinic/Oscar Health, and Trinity Health/Blue Cross Blue Shield of Michigan. You can read more about these joint ventures here.

Promote Health and Wellness Programs

Education and wellness programs are valuable resources for members, expanding their knowledge of health and improving their overall wellbeing. When members actively engage in these initiatives, it fosters a comprehensive and successful health plan. Various examples of such programs include webinars on the importance of work-life balance, nutrition workshops, and smoking cessation programs.

Utilize Technology and Data

Leveraging technology and data analytics is crucial for enhancing health plan outcomes and devising an effective benefits strategy. Data and technology enable insurers to provide comprehensive healthcare plans grounded in empirical evidence. Examples of utilizing technology and data effectively include using historical data to evaluate patient risk factors, identifying prevalent health trends among patients, and analyzing engagement within a patient portal to identify where members spend their time.

Maintain Compliance

Laws like the Health Insurance Portability and Accountability Act (HIPAA) are in place to protect patient information and improve patient care. Adherence to such laws is imperative for the success of health plans. Failure to comply can lead to severe repercussions including fines, jail time, and irreparable reputation damage. Key strategies to ensure compliance include staying well-informed on new laws and evolving regulations, providing comprehensive staff training, implementing robust processes and procedures, and investing in technology that safeguards sensitive information.

There are plenty of other strategies and tips to help you achieve health plan success. Contact Clarity today to get personalized recommendations from our team of industry experts.

Benefits of Achieving Health Plan Success

Achieving health plan success yields significant benefits including:

• Enhanced Health Outcomes: Successful health plans correlate with improved health outcomes among members, encompassing reduced morbidity rates, increased utilization of preventive care, and better management of chronic conditions.
• Financial Savings: Effective health plans often translate into cost savings for insured individuals through lower out-of-pocket expenses, reduced healthcare utilization costs, and more efficient resource allocation.
• Increased Patient Satisfaction: A successful health plan fosters high levels of patient satisfaction by ensuring timely access to quality healthcare services, personalized care experiences, and responsive support systems.
• Strong Payer-Provider Relationships: Achieving health plan success cultivates collaborative and mutually beneficial relationships between healthcare providers and insurers, fostering trust, communication, and alignment of goals to optimize patient care.
• Greater Member Retention: Successful health plans boast higher rates of member retention, driven by satisfaction with coverage, positive healthcare experiences, and perceived value in continuing with the plan.
• Effective Chronic Disease Management: Excelling in chronic disease management leads to better health outcomes, reduced complications, and improved quality of life through comprehensive care coordination and targeted interventions.
• Reduced Administrative Burden: Streamlined processes and efficient resource utilization inherent in successful health plans alleviate administrative burdens for both members and healthcare providers, optimizing operational efficiency and service delivery.
• Regulatory Compliance: Successful health plan management ensures adherence to regulatory standards and compliance with healthcare laws, mitigating legal risks and safeguarding the interests of members and insurers.
• Data-Driven Decision-Making: Successful health plans leverage data analytics to drive informed decision-making processes, facilitating continuous improvement, innovation, and adaptation to evolving healthcare needs and trends.

Together, these benefits underscore the holistic impact of achieving health plan success, promoting better health outcomes, financial security, and satisfaction among stakeholders within the healthcare ecosystem.

Challenges and Future Trends in Health Plan Success

The constantly evolving landscape of healthcare poses challenges and opportunities for health plans. Among the hurdles are:

Rising Healthcare Costs

With the national health expenditure reaching $4.5 trillion in 2022 and anticipated continued growth, escalating healthcare expenses put financial strains on insurers and individuals alike.

Longer Life Expectancy

Advancements in technology mean people are living longer than ever before, necessitating extended healthcare services and placing heightened financial pressure on individuals and healthcare providers.

Facility Closures

Hospitals and other healthcare facilities, particularly in rural areas, continue to face closures, which can limit access to essential services. Without access, patients may not receive the medical attention they need, potentially compromising healthcare outcomes even with adequate coverage.

Amidst these challenges, promising trends and innovations emerge within the healthcare sector including:

• Telemedicine
• Artificial intelligence
• Enhanced member and health plan communications

Change can be overwhelming, but a health plan’s success largely depends on its ability to innovate. Keeping pace with the dynamic healthcare landscape, as well as the shifting needs and expectations of members, is crucial to fostering improved health outcomes, member satisfaction and quality healthcare. Ensuring that a health plan aligns with individual needs at an affordable price underscores the importance of informed decision-making in selecting healthcare coverage.

The agility of health plans and their ability to embrace change is crucial for payers to be successful. At Clarity, we help organizations navigate the evolving healthcare industry. Our best-in-class technology and solutions free insurers to achieve their full potential and help members live healthier lives. Contact us today to learn more and begin your journey toward greater health plan success.