The Importance of Health Insurance Branding in the ACA Era
By Martha C. Rivera, Director of Strategy and Insights
A nomadic, empowered health insurance shopper could be an unexpected result from the health care reform. Until now, the biggest portion (70%)* of the health insurance policy holders in the U.S. had obtained insurance from their employers, with little to no say on which carrier to choose. The portion of insured people who had bought their policies as individuals, and consequently had chosen their own insurance company, was much smaller (7%). Under the ACA, analysts expect that this portion will significantly increase, as eligible consumers will select their health plans from various carrier choices that will be available at the state exchanges. What could that mean in terms of loyalty towards health insurance brands?
It is easy to predict that, upon gaining familiarity with the new system to purchase individual health insurance, consumers would become aware of the fact that they are now entitled to switch carriers by their own decision. Many people who previously had no health insurance, or never had an opportunity to select their insurance company themselves before, will suddenly be in position to select which logo they’d like to see in their insurance cards.
“The freedom of choice is a beautiful thing. The health care category is going to become as competitive as the property and consumer insurance segment,” said George L. San Jose, president and chief creative officer at The San Jose Group. “Quality care, branding and customer service are factors that will acquire new and greater importance within the health care market.”
Source: Employment-base Health Insurance 2010. U.S. Census Bureau, February 2013
