Healthcare.com

Part
01
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Part
01

Healthcare.com Competitors Part 1

Two direct competitors to Healthcare.com are eHealth and Devoted Health. All the requested information about the direct competitors is both included in the attached spreadsheet and summarized below.

Direct Competitors to Healthcare.com

1. eHealth

A. Company Overview & Products/Services

  • Specific types of health insurance plans offered through the site are Medicare Advantage, short-term, dental, vision, GAP, and medical indemnity.
  • eHealth provides free health insurance quotes, 24/7 customer support from licensed health insurance agents, and a variety of online tools that help people find the right health insurance plans that meet their needs.
  • eHealth's target market includes individuals (in general), small businesses, families, and seniors.
  • eHealth's C-suite include the following individuals: Scott Flanders (CEO), Dave Francis (COO), Robert Hurley (President of Carrier and Business Development), Ian Kalin (Chief Technology Officer), Tim Hannan (CMO), Bill Billings (Chief Information Security Officer), Derek Yung (CFO), Christina Hoffman (Chief People Officer), and Scott Giesler (General Counsel & Secretary).

B. Revenue & Growth Projections

  • eHealth's most-recent annual revenue is from 2018, which totaled $251 million.
  • eHealth projects that it will generate $700 million in revenue in 2023 (up substantially from its projection of $375 million for 2019). As a result of that projected revenue growth, the projected compound annual growth rate in that time is 23%.
  • eHealth projects that its share of the Medicare market will grow from its level of less than one percent in 2018 to approximately two percent in 2023.
  • eHealth projects that its EBITDA margin will grow from 18% in 2019 (projected) to 30% in 2022 and to 32% in 2023.
  • eHealth projects that its "estimated commission receivables" will increase substantially from $346 million in 2018 to $950 million in 2023.

2. Devoted Health

A. Company Overview & Products/Services

  • Devoted Health offers health insurance plans for seniors.
  • The specific type of health insurance plans offered through the site are Medicare Advantage HMO. As part of the plans, coverage is also provided for dental, vision, hearing, and acupuncture services.
  • Devoted Health's target market is seniors.
  • Devote Health's C-suite includes the following individuals: Ed Park (CEO), Todd Park (Executive Chairman), Leslie Brunner (Chief People Officer), Jeremy Delinsky (COO), Nancy Go (CMO), Shannon O'Kane (Medicare Compliance Officer), Michael Nochomovitz (Chief Clinical Partnerships Officer), Neil Wagle (Chief Medical Officer), and Adam Thackery (CFO).

B. Revenue & Growth Projections

  • Devoted Health's estimated, annual revenue is $262.9 million. We couldn't find an actual, annual revenue total for a specific year, so that estimate was the best information we found.
  • The company projects that by 2023, it will have 103,722 members (up from 5,000 in 2019).
  • The company projects that its 2023 annual revenue will amount to approximately $1.2 billion.

Research Strategy

We identified the two competitors above by searching for online health insurance aggregators and innovative online health insurance companies. In so doing, we found a list of Healthcare.com's competitors on Owler and eHealth was listed as such. We then reviewed eHealth's website to ensure that it is indeed a direct competitor, which we found that it is (for the reasons stated above). The other health insurance aggregators we found (both in that Owler list and elsewhere) had very little of the requested information available about them other than their products, such as C-suite, revenue, and growth projections. Thus, rather than provide a competitor with sparse information about it, we decided to expand our search to online health insurance companies so that we could provide all the requested information about the second competitor we identified. In so doing, we came across Devoted Health's website. We determined that it is a direct competitor to Healthcare.com for the reasons specified above. Most of the information about these competitors came from the companies websites, though we also used outside business journals and databases for information about growth projections and revenue, such as The Business Journals.
Part
02
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Part
02

Healthcare.com Competitors Part 2

Rows 7-11, column C of the attached spreadsheet have been completed. Oscar has adopted a full-stack approach for its platform. The company’s latest marketing campaign is called “Health insurance made easy.

Selected Findings

Part
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of eight
Part
03

Healthcare.com Competitors Part 3

Rows 7-11, column D of the attached spreadsheet have been completed. Bright Health has adopted the Care Partner Health Plan Model as its business model. The company’s latest marketing campaign is called “Join. Save. Be happy.”

Selected Findings

Part
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Part
04

Healthcare.com Competitors Part 4

Rows 7-11, column E of the attached spreadsheet have been completed. eHealth has developed a robust back-office integration for delivering best plans more efficiently and cost-effectively. The company’s has had 4,000+ airings in the past 30 days.

Competitive Advantage

  • eHealth offers the largest selection of online insurance products in the US. The company offers more than 10,000 plans from 180+ companies.
  • The company features strong back-office integration with major Medicare carriers, allowing customers to select the best plans efficiently and cost-effectively.
  • The company has a significant marketing budget of $82.93 million, coming at about 33% of the total company revenue at $251.39 million in 2018. eHealth's has more than 250 licensed agents based in the US.
  • eHealth has written over 3 million health policies from all 50 states in the US. The company also offers custom quotes for vision, dental, travel, and business health insurance.
  • The company offers 24x7 service support for all customers; for certain insurance providers, eHealth offers instant policy approvals within 3 minutes.
  • The company has received an A+ rating with the Better Business Bureau (BBB).

Messaging and Taglines

Current Marketing Campaigns

Marketing Channels

Part
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of eight
Part
05

Healthcare.com Competitors Part 5

Rows 7-11, column F of the attached spreadsheet have been completed. Devoted Health has adopted the “payvidor” model as its business model. The company’s main tagline is “Easy. Affordable. And a whole lot more caring.”

Selected Findings

  • Devoted Health’s “payvidor” model is a service that “integrates being both a payor and provider of health care.”
  • The company’s main messaging is that it offers “Medicare Advantage plans for simple, seamless, affordable healthcare.”
  • Devoted Health’s website allows consumers to compare the Medicare Advantage plans that are available for their zip codes.
  • Devoted Health uses its Twitter account to promote the company’s online seminars, partnerships, services, and other news.
  • The majority of the videos on Devoted Health’s YouTube channel are TV spots that promote the company’s services.
Part
06
of eight
Part
06

Health Insurance Perceptions

While Americans generally approve of their individual health plans obtained through the federal health insurance marketplace, they still think their premiums and deductibles are too expensive. Many people who would normally buy individual health insurance are turning to short-term health plans as an alternative even though those plans do not cover as much as ACA-compliant plans cover. Most Americans find health insurance complicated and would welcome a public option, especially those with individual health plans.

Americans Generally Approve of the ACA

  • According to a poll conducted by HealthPocket, 23.08% of Americans strongly approve of the Affordable Care Act (ACA), which mandated individual health insurance coverage and established the federal health insurance marketplace.
  • Additionally, 27.88% of Americans approve of the Affordable Care Act, which means that over 50% of Americans either approve or strongly approve of the ACA.
  • In 2017, 82% of Americans were either somewhat satisfied or very satisfied with their individual health insurance plan purchased through the federal marketplace. This has increased from 65% in 2014, 81% in 2015, and 77% in 2016.
  • In a separate poll conducted by HealthPocket, the only factor that would cause American consumers to support an ACA repeal would be lower premium costs at 38%. Nearly the same percentage (36%) said they nothing on the list would cause them to support an ACA repeal.
  • However, individual health insurance plan satisfaction is still lower than Medicare, Medicaid, and employer-provided health insurance.

Individual Health Insurance is Expensive

  • In a poll conducted by Pivot Health, 73% of respondents said the biggest concern facing the individual health insurance market today is the high monthly costs.
  • The same poll found that 44% of consumers are worried about high deductibles for individual health insurance plans and 55% are worried about paying for medical bills out-of-pocket.
  • Of the 27% of people who lost coverage through their employer, motivating them to purchase an individual health insurance plan, 80% said they did not choose their employer's COBRA plan because it was too expensive on a monthly basis.
  • An eHealth survey found that 80% of respondents stated that the cost of an individual or short-term health plan was more important to them than the coverage of the plan.
  • eHealth also found that over 40% of Americans between the ages of 18 and 34 believed a premium of $100 per month was fair for individual health coverage.

Consumers View Short-Term Plans as an Alternative to Individual Health Insurance

  • Rather than using short-term health plans to cover gaps in comprehensive health insurance plans, more Americans are viewing short-term plans as "a cheaper alternative to traditional plans, despite being aware that these options do not offer the same benefits as ACA-compliant products."
  • This is particularly true for Americans who do not qualify for government subsidies to purchase individual health insurance from the marketplace and who cannot afford entire individual monthly premiums.
  • Although 60% of short-term health consumers consider and ACA-compliant individual health insurance plan first, they end up purchasing a short-term plan due to the lower monthly cost.
  • About 43% of Americans who choose short-term health plans would go uninsured if they were not able to purchase such a plan. Only 22% would purchase an individual plan from the marketplace if they could not get a cheaper short-term option.

Health Insurance Plans are Complicated

  • PolicyGenius found that 85% of Americans do not understand what an ACA-compliant insurance plan must cover. This is an increase over the 80% in 2018 and the 78% in 2017.
  • Over a quarter (27.2%) of Americans have avoided care because they aren't sure if their plan would cover the treatment.
  • Just 12% knew when the federal marketplace opened for enrollment in 2019 and only 21.9% knew that government subsidies are available for lower-income Americans through the marketplace.

More Likely to Support a Public Option

  • In an Insure.com survey, people with individual health insurance plans were more likely than those on employer plans to support a public health option. In fact, 38% of people enrolled in an individual health plan supported a public option compared to 32% of Americans with employer-provided health insurance.
  • Not a single respondent with an individual health insurance plan indicated they wanted the healthcare system to stay the same. This was compared with 8% of people who have employer-provided health insurance, 4% who have Medicaid, and 11% who have Medicare.
Part
07
of eight
Part
07

Health Insurance Decision Journey

U.S. consumers who shop for individual health insurance plans are more likely to research and compare plans online than through any other source. More than a quarter of consumers researched health insurance plans on the government marketplace and 83% of consumers want to know more about health insurance plans. Top reasons for changing to a different plan include the old plan no longer being offered, the opportunity to pay a lower premium, and the availability of healthcare providers. Top reasons for staying with a plan include being satisfied with their current plan, finding it easier just to stay, and liking their doctors. More details about the consumer's shopping journey are below.

Resources or How People Shop For and Compare Plans

  • In 2017, 28% of adults between the ages of 19 and 64 visited a government marketplace by phone, in person, or on the Internet to shop for individual health insurance.
  • The age bracket with the highest percentage of people who have visited a government marketplace was the 35-to-49-year-old age bracket at 31%.
  • The age bracket of 50-to-64-year-olds has the lowest percentage of people visiting a government marketplace at 25%, but 19-to-34-year-olds are only slightly more active at 26%.
  • UnitedHealthcare found that 37% of consumers use a combination of the Internet and apps to comparison shop for healthcare services and 80% use only the Internet to compare healthcare options.
  • Millennials represent the largest cohort of healthcare consumers who use the Internet to compare health insurance plans at 50%.
  • When shopping for healthcare plans, 68% of consumers prefer digital solutions over telephone or in-person solutions.

Top Reasons for Not Purchasing Health Insurance

  • According to the Centers for Medicare & Medicaid Services (CMS), the top reason attributed to people choosing not to purchase health insurance is the affordability of the premium (64%).
  • Following affordability, high deductibles represent the next deterrent to purchase (8%), not needing insurance follows at 7%, believing they are ineligible comes in at 5%, and not finding a plan that includes their doctor is last at 1%.

Key Factors for Changing Plans

  • According to The Commonwealth Fund, the main reason for switching to a different individual health insurance plan is because their old plan was no longer being offered (35%).
  • Lowering premiums was the main reason for switching to a different individual health insurance plan for 21% of respondents.
  • About 10% of people switched to a different individual health insurance plan because the new one had more of the doctors or hospitals the individuals wanted.
  • The least kept features of individual plans are preferred brand drugs (34%), mental health/substance abuse (32%), and pregnancy and childbirth (27%).

Key Factors for Not Changing Plans

  • The Commonwealth Fund found that 38% of people who chose to stay with their current individual health insurance plan did so because they were satisfied with it.
  • Another 32% found that it was just easier to stay with their current plan.
  • Just 10% stayed with their current plan because they liked their doctors and did not want to change.
  • The most kept features of individual health insurance plans are hospitalization (77%), emergency room (74%), and urgent care (71%).

How People Compare Health Insurance Plans

  • Of the people who eventually obtained individual health insurance through a marketplace, 71% found it easy to compare plans based on premium. This is compared to 56% of those who did not purchase coverage through a marketplace.
  • Fewer people who eventually purchased a plan on a marketplace found it easy to compare plans based on benefits at 65%. This was even lower for those who did not purchase coverage through a marketplace at 49%.
  • The same percentage (65%) of people who eventually purchased a marketplace plan found it easy to compare plans based on out-of-pocket costs, but only 45% of those who did not purchase coverage through a marketplace agreed.
  • The comparison of doctors, clinics, and hospitals across plans was the most difficult for people who ultimately purchased a plan through a marketplace, with only 51% finding it easy. Just 28% of those who did not purchase coverage through a marketplace said it was easy to compare plans based on medical providers.

What People Want to Know More About

  • A Consumer Health Insurance Knowledge survey found that 83% of consumers are interested in knowing more about health insurance.
  • In particular, 53% want to know how to challenge a treatment denial, 51% want to know what questions they should ask their health insurance company when a treatment is denied, and 47% want to know which insurance practices are discriminatory.

Preferred Methods of Learning About Health Insurance

  • The Consumer Health Insurance Knowledge survey indicated that 72% of consumers want to learn more about health insurance from a website with information and resources.
  • Printed brochures were mentioned as popular sources of health insurance information for 40% of respondents.
  • Other desirable sources for learning about health insurance were online training programs (24%), talking with a health provider (22%), talking with insurance companies directly (21%), in-person training programs (16%), via telephone (15%), via online chat (13%), via an online newspaper (11%), and from friends and family (9%).
Part
08
of eight
Part
08

Self-Insured in the US

In 2018, 19,611,000 people purchased their own health insurance. About 8.5 million purchased it through the HealthCare.gov marketplace, 196,110 purchased it through web aggregators, and 2,941,650 purchased it directly from insurance companies. More information follows.

Percentage and Number of Americans Purchasing Their Own Health Insurance

  • As of 2018, 6% of the U.S. population have non-group health insurance policies.
  • This percentage represents 19,611,000 people in the U.S.

Number of Americans Who Purchased Health Insurance Through HealthCare.gov

  • Approximately 8.5 million people purchased individual health insurance plans through the HealthCare.gov marketplace in 2019. This represents about 43% of all plans.

Number of Americans Who Purchased Health Insurance Through Web Aggregators

  • According to LiveMint, just 1% of health insurance plans are purchased through web aggregators. This would mean that of the 19,611,000 people who have non-group health insurance policies, 196,110 were purchased through web aggregators.

Number of Americans Who Purchased Health Insurance Directly from Insurance Companies

  • LiveMint also found that 15% of individual health insurance plans are purchased from health insurers directly, which would represent about 2,941,650 people.

Number of Americans Who Purchased Individual Short-Term Health Insurance Plans

  • About 600,000 people are expected to enroll in short-term health insurance plans that can be held for a maximum of 365 days in some cases. This represents about 3% of the total individual plans.

Number of Americans Who Purchased Health Insurance Plans Through Brokers

  • Brokers are responsible for writing about 4% of individual health insurance plans or 784,440 insureds.

Number of Americans Who Purchased Health Insurance Plans Through Banks

  • Banks write approximately 17% of individual health insurance plans or 3,333,870 insureds.

Number of Americans Who Purchased Health Insurance Through Non-Bank Corporate Agents

  • Non-bank corporate agents write another 4% of individual health insurance plans, representing another 784,440 individuals.

Research Strategy

To determine the percentage or number of Americans who are currently purchasing their own health insurance and the percentage of number of Americans who are buying insurance through the government marketplace, other aggregators, or directly from insurance companies, we relied on actual data from the Kaiser Family Foundation, HealthInsurance.org, and other industry publications. The total number of people purchasing from HealthCare.gov, aggregators, insurance companies, short-term companies, brokers, banks, and non-bank agents does not add up to the total number of people purchasing individual health insurance plans because the numbers are approximate and some are for 2019 whereas the most recent data on the number of people purchasing their own health insurance is from 2018.

Calculations

To determine the percentage of health insurance plans purchased through the HealthCare.gov site, we divided 8.5 million by 19,611,000 to get 0.433 or 43%.

To determine the number of health insurance plans purchased through aggregators, we multiplied 19,611,000 by 0.01 to get 196,100.

To determine the number of health insurance plans purchased directly from insurers, we multiplied 19,611,000 by 0.15 to get 2,941,650.

To determine the percentage of health insurance plans that are short-term plans, we divided 600,000 by 19,611,000 to get 0.030 or 3%.

To determine the number of health insurance plans purchased through brokers, we multiplied 19,611,000 by 0.04 to get 784,440.

To determine the number of health insurance plans purchased through banks, we multiplied 19,611,000 by 0.17 to get 3,333,870.

To determine the number of health insurance plans purchased through non-bank corporate agents, we multiplied 19,611,000 by 0.04 to get 784,440.
Sources
Sources