Wisconsin Health Analysis

Part
01
of three
Part
01

Wisconsin Health Analysis, Pt 1

After extensive research, we could not determine how Anthem's and UHC's media spend budget is allocated by percentage and/or by business line in Wisconsin. However, these healthcare organizations have employed various unusual efforts to promote themselves in Wisconsin, such as investments in housing, partnerships, and corporate social responsibilities. Available information has been provided in rows 3-4 of the attached spreadsheet.

UHC's Unusual Promotion Efforts

Partnerships

  • UHC, as one of the major funders of "a new 94-unit affordable-housing community (HARMONY @Grandview Commons) for working families in the region," including Madison. UHC contributed $5.4 million in equity funding by partnering with Cinnaire and Minnesota Equity Fund.
  • The CEO of UnitedHealthcare Community Plan of Wisconsin, Ellen Sexton, said that UHC will continue to partner with "other socially-minded organizations that understand the value of good health and how public-private partnerships like these can succeed in helping to make a positive impact in communities.

Investments in Housing

  • UHC has invested $12 million in housing in Wisconsin. This was aimed at redefining healthy living in Wisconsin by addressing social factors, such as access to affordable housing that can affect people's health and well-being.
  • UHC and community partners worked together to convert a vacant warehouse into a 60-unit apartment, to provide affordable housing, with on-site support services for residents of Milwaukee.

Anthem's Unusual Promotion Efforts

Partnerships

  • Anthem partnered with Matrix "to conduct mobile health clinics and in-home assessments for targeted members."
  • This partnership was geared towards the provision of "convenient, comprehensive appointments that are designed to complement the care provided by Matrix' network of physicians."

Volunteerism and Corporate Social Responsibility

  • Anthem hopes to achieve its vision of becoming America's valued health partner by improving its CSR programs tagged "Anthem for Good!"
  • Some of these programs include volunteerism programs that reward volunteers when they support or work for their favorite nonprofit organizations.

Useful Findings

  • The selling, general, and administrative expenditure of Anthem accounted for 15.3% of its total operating revenue ($91.341 billion) in 2018.
  • For UHC, its cost of product sold, which may include media expenditure, was $26.998 billion in 2018.
  • UHC's advertising expenditure in 2017 was $366 million.

Research Strategy

We began by attempting to identify the 2019 annual reports of Anthem and UnitedHealthcare, as financial details and breakdown, such as expenditure, are usually published annually. However, they are yet to publish their 2019 annual reports. The closest we could find for 2019 was their quarterly reports, of which they don't usually contain as many details as the annual reports. Moreover, the only useful expenditure data was their operating costs and/or the selling, general, and administrative costs. We also decided to review the 2018 annual reports of Anthem and UHC to understand the level of data breakdown and the sort of expenditure they do publish. Specifically, we wanted to see if they directly or indirectly provide quantitative data about its media spend, ads spend or even marketing spend but could quickly find that Anthem only publishes its selling, general, and administrative costs while UHC publishes only its operating costs and the cost of goods sold. Both healthcare organizations provided no further breakdown by state or business line allocation or any relevant breakdown. Also, they didn't provide any strategic or unusual efforts they've taken to promote themselves. Hence, it is likely that the 2019 reports, when published, will not contain the media spend and since there was no media spend data and/or unusual promotion efforts in Wisconsin in these annual reports, we changed our approach.

Next, we attempted to search through industry sources and news pages, such as Adweek, as these resources do contain expert analysis or news articles revealed by the companies or its executives/leaders. Through these resources, we focused on finding the media expenditure in Wisconsin for Anthem and UHC but there was no information on them. We also narrowed our search to target local news sites in Wisconsin, such as the Star Tribune and the Milwaukee Journal Sentinel, but found no luck, as there was hardly any useful information. The only success we found with this strategy was identifying some unusual efforts Anthem and UHC made in 2019 to promote themselves.

Continuing, we then tried to expand to the US with the aim of identifying Anthem's and UHC's media spend in the US in 2019 and then, narrow them down to Wisconsin by various proportional metrics. An approach we wanted to attempt was finding the revenue or number of customers for Wisconsin, how much it accounts for in the US, and then, using it as a proxy to triangulate an estimate, assuming that larger revenue/customer locations would require more media spending. However, this strategy wasn't successful because obtaining the relevant data points were challenging. Hence, we could not provide an analysis/explanation of how their media spend budget is allocated by percentage and by business line in Wisconsin. We entered N/A for these in the respective cells.
Part
02
of three
Part
02

Wisconsin Health Analysis, Pt 2

Due to the unavailability of financial data for Aspirus Arise and prevea360, the research team could not sufficiently provide all the requested data on these healthcare organizations. However, in the course of this research, the team gathered information in strategic partnerships between Aspirus Arise and Civica Rx, as well as that of prevea360 with the State of Wisconsin Group Health Insurance Program, Navitus Health Solutions, and StayWell. Rows 5-6 of the attached spreadsheet have been updated accordingly.

Summary of Findings

Research Strategy

To provide an analysis of the 2019 media spend allocation or budget of Aspirus Arise and Prevea360, your research team commenced with a search through the official websites of Aspirus Arise and Prevea360. The reason for this search attempt was to find the annual report of each company which would contain information on the companies' media spend. However, both companies do not publish annual reports. Further search on both companies revealed that both Aspirus Arise and Prevea360 are privately held companies, as such, are not compelled to publish their financial reports.

The next attempt was to search through press releases, publications, and reports by the companies and other credible third-party media outlets. The team hoped to find any 2019 publication or press release by both companies or interview extracts from any top personnel for both companies which could provide an insight into the media spend of their company in 2019. The search also extended to the social media pages of the companies such as LinkedIn and Facebook. Unfortunately, no information or data related to the financial activities of these companies was found on public media outlets.

Furthermore, the team searched through association and ad agency databases such as Adage, Adweek, and National Association of Insurance Commissioners hoping to find reports on the marketing and ad efforts of these companies in terms of the percentage distribution of their ad spend or budget. However, no useful data was found even after expanding beyond 2019. The team could only find financial data on the assets, liabilities, and net premiums earned for Aspirus Arise only.

After exhaustive research, relevant data related to the media spend of Aspirus Arise and Prevea360 could not be determined or triangulated due to the unavailability of relevant data points which could be as a result of the companies' internal policy of not revealing such details to the public.
Part
03
of three
Part
03

Wisconsin Health Analysis, Pt 3

After an extensive search through publicly available sources, media spending breakdowns could not be determined for WEA Trust or Quartz. However, the research team was able to gather information about both organizations' strategic partnerships and promotional activities.

WEA Trust Promotional Activities and Strategic Partnerships

  • WEA Trust has partnered with Kiio to administer a digital therapeutic program aimed at lower back pain. Participants in the program showed a 64% decrease in medical spending on lower back pain treatment and a 24% decrease in filled opioid prescriptions.
  • WEA Trust has formed a partnership with the League of Wisconsin Municipalities to launch the Local Spark program. The program awards three $3,000 grants each year for community projects in Wisconsin.
  • WEA Trust has also established the Forward Together Award to recognize innovation in Wisconsin schools. This award provides three grants per year to fund innovative school projects.

Quartz Promotional Activities and Strategic Partnerships

These findings are summarized in this spreadsheet.

Research Strategy

WEA Trust has not yet published the group's 2019 annual report or media budget breakdowns for that year as of January 21, 2020. This information may be made available at a later date. Highlights of the group's annual report for 2018 were available on WEA Trust's website, but these points did not contain data relevant to this request. Attempts were made to locate WEA Trust's media budget information on WEA Trust's website and blog, as these were the most likely places for specific budgetary information to be published. This information was also searched for in articles about WEA Trust on news websites such as The Juneau County Star-Times, MacIver Institute, Townhall, The Wisconsin State Journal, and The LaCrosse Tribune. This strategy was chosen because of the public nature of the trust and its importance to state employees. While this strategy did locate information about some elements of WEA Trust, it mainly concerned budgets that were adjacent to WEA Trust such as educational district budgets rather than internal budgets. Because WEA Trust is one of Wisconsin's health insurance programs for state employees, the state's enacted budget for 2017-2019 was also searched. However, this did not yield relevant information specific to WEA Trust. Information about WEA Trust's strategic partnerships and community promotional activities was pulled from the company's website.

Quartz does not publish an annual report. The Quartz website was searched for any information related to financial transparency, but this was not available. The profiles of marketing executives on Quartz's website were also scanned for data about the media program's budget. However, this was not mentioned in any of the articles. Openings at Quartz were searched to get a sense of potential media budget expenditures in salary. However, current listings for marketing and communications positions did not contain financial information. A similar tactic as tried on LinkedIn to get a sense of media salary expenditures and to see if any profiles mentioned project budgets. On LinkedIn, there are seven employees that appear have media or marketing related duties. Salary information was not accessible on this website, nor were current project budgets. Because Quartz is a health insurance program open as an option to state employees, Wisconsin's enacted budget for 2017-2019 was also searched to obtain information about the expenditures of this program within that context. However, this strategy did not yield relevant information specific to Quartz. Information about Quartz's strategic partnerships and promotional activities was sourced from the Quartz website and Facebook page.
Sources
Sources