My Plan by Medica Meets Changing Needs and Expectations of Consumers
Changing Consumer Behavior through a Private Healthcare Exchange
MINNEAPOLIS--(BUSINESS WIRE)--Data released today from Medica about its market-leading private health exchange, My Plan by MedicaSM, demonstrates that the exchange approach to offering health coverage can change consumer behavior. My Plan by Medica is helping more than 120 employers meet the changing expectations that employees have around their healthcare experience.
“When employees are in control, they make different decisions than employers make on their behalf and they tend to be more satisfied with the choices they’ve made. My Plan by Medica offers the convenience, personalization, transparency and choice that employees want from their health plan.”
In 2011, Medica was the first health plan in the region to introduce a private exchange, an online marketplace where employees select their healthcare coverage. Employers choose from 20 different plan designs – from traditional plans to Health Savings Accounts and can offer all 20 plans, or a subset of them. Data from Medica shows that 87 percent of members select a different plan design than the one previously offered by their employer, suggesting that employees are more engaged in the selection of their plan when they’re making the decisions.
Not only do members tend to choose a different health plan, when given the option, many also choose a different type of health plan altogether. In 2012, Medica successfully aligned with major healthcare systems in the addition of Accountable Care Organizations (ACOs) to My Plan by Medica, reengineering the approach to healthcare delivery and member service. Each ACO committed to improvements in cost, quality standards and the overall consumer experience. More than 50 percent of eligible My Plan members choose to receive their health care through one of Medica’s ACO partners.
Today, the varying needs of employees are well served by the choices offered through My Plan by Medica, as indicated by the following data:
- More than 93 percent of members report high levels of satisfaction with My Plan by Medica.
- No single plan offered through My Plan by Medica has more than 13 percent of the total membership in the product.
- About 70 percent of members renew into the same or similar plan in the second year My Plan by Medica is offered to them.
- Sixty one percent of employees select HSA plans, as compared to the national average of 15 percent.
“Employees have unique needs when it comes to health care,” said Scott Reid, Medica vice president for product strategy and development. “When they find a plan that meets their needs, they tend to stick with it. My Plan by Medica, with its robust decision support tool, is personalizing the healthcare experience. Consumers better understand the costs associated with their healthcare benefits and network options and they’re making informed choices based on that knowledge.
“Clearly we have entered an era where the one size fits all approach to health coverage no longer meets the needs of a broad base of employees,” said Reid. “When employees are in control, they make different decisions than employers make on their behalf and they tend to be more satisfied with the choices they’ve made. My Plan by Medica offers the convenience, personalization, transparency and choice that employees want from their health plan. ”
My Plan by Medica
My Plan by Medica is a private health exchange model based on a defined contribution financing approach. Employers determine how much money they want to spend on employee health benefits and then allocate pre-tax dollars into a health account on behalf of each employee. The private health exchange, proprietary to Medica and powered by Bloom Health, allows employers to offer an integrated health plan enrollment experience for their employees – from making a plan selection to account administration and customer service.
Medica (www.medica.com and newscenter.medica.com/) is a health services company headquartered in Minneapolis and active in the Upper Midwest. With approximately 1.5 million members, the non-profit company provides health care coverage in the employer, individual, Medicaid, Medicare and Medicare Part D markets in Minnesota and a growing number of counties in North Dakota, South Dakota and Wisconsin. Medica also offers national network coverage to employers who also have employees outside the Medica regional network.
Medica’s vision is to become the community’s health plan of choice, trusted for its integrity, respected for its service, and admired for its commitment to innovation and efficiency.