w health plan member satisfaction improves with healthy ... · 678 673 671 500 900 kaiser...

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w Health Plan Member Satisfaction Improves with Healthy Competition, Says J.D. Power Study Health Plan Member Satisfaction Climbs to Highest Levels Since ACA Implementation New York: 17 March 2016 —Critical factors of health plan member satisfaction are highest in areas of the country that have more competition between different health plans according to the J.D. Power 2016 Member Health Plan Study,SM released today. On a nationwide basis, member satisfaction with their health plans improves nine index points in 2016, scoring a total of 688 on a 1,000-point scale. This follows a 10 point improvement in 2015. Member satisfaction with health plans reached a low point in 2014, following the introduction of the health insurance marketplace as part of the Affordable Care Act (ACA). On a regional basis, the J.D. Power 2016 Member Health Plan Study found that member satisfaction in cost and information and communication is significantly lower in areas where one carrier holds a majority (more than 50%) of market share. Satisfaction is higher in competitive markets than in markets dominated by a single plan in cost (610 vs. 606, respectively); customer service (743 vs. 740); and information and communication (646 vs. 641). “Competition among health plans is good for members in that it forces carriers to fight for market share, and the best way to do that is with satisfied customers,” said Greg Hoeg, vice president of U.S. insurance operations at J.D. Power. “In today’s health insurance markets, with increased legal restrictions on profitability, carriers are shifting toward member satisfaction.” Hoeg noted that the one factor in which member satisfaction is higher in markets with less competition than in more competitive markets is provider choice within their plan (759 vs. 748, respectively). “Sometimes, having fewer, simpler plan choices makes it easier for the member,” said Hoeg. “Having dozens of plan options—such as deductibles and coverage levels—to choose from can be overwhelming.” The Affordable Care Act (ACA) imposition of a minimum medical loss ratio has forced health insurers to compensate for slimmer margins by focusing on increasing their market share, often through mergers and acquisitions. “Carriers are paying particular attention to cost management and economies of scale, and one way to do that is to combine with other carriers,” said Hoeg. “Competition is good for the market, but how that narrowing of the market will affect member satisfaction remains to be seen.” The traditional plans like Blue Cross Blue Shield plans merging with other Blue plans, national deals like Aetna/Humana and Anthem/Cigna, and major market-driven acquisitions for UnitedHealthcare/Optum are all with an eye toward increased economies of scale and market power. Many have speculated that Anthem’s proposed acquisition of Cigna will harm competition and consumers by reducing the ability of other health insurers to compete with Blue plans. It appears that cost isn’t the only factor impacting member satisfaction, as satisfaction with information and communication and customer service is also

significantly lower among members in less competitive markets. Now in its 10th year, the study measures satisfaction among members of 135 health plans in 18 regions throughout the United States by examining six key factors: coverage and benefits; provider choice; information and communication; claims processing; cost; and customer service. Overall member satisfaction averages 688 in the 2016 study, up from 679 in 2015 and 669 in 2014. The increase in satisfaction is driven by improved performance across all factors, most notably in coverage and benefits (+12 points); information and communication (+11); and customer service (+10).

KEY FINDINGS

Integrated Delivery Systems Dominate the Rankings: Health plans that utilize an integrated delivery system (IDS)—a network of healthcare and health insurance organizations presented to members as a single delivery organization—are poised for success as healthcare and health insurance become more focused on member satisfaction. Integrated plans have an average overall satisfaction score of 746, which is 63 points higher than that for non-integrated plans.

Premiums Declining: There is a slight decrease in the monthly premiums members pay. On average, the monthly premium for a family plan is $355 in 2016, down from $374 in 2015, while individual plan premiums are $207, down from $216.

Health Plans Evolve into ‘Wellness Partners’: Among the 20% of members who say they “strongly agree” that their health plan is a trusted partner in their health and wellness, satisfaction averages 837, which is 200 points higher than among the 7% who say they “strongly disagree.”

Study Rankings Satisfaction is highest among health plan members in the California (707); Michigan (699); Mid-Atlantic (698); Illinois-Indiana (697); and Northwest (692) regions. Satisfaction is lowest among members in the Southwest (661) and Minnesota–Wisconsin (666) regions. Kaiser Foundation Health Plan ranks highest in five regions: California, Colorado, Mid-Atlantic, Northwest and South Atlantic. Other plans to rank highest in their respective regions are Anthem BlueCross BlueShield of Connecticut (New England); AvMed (Florida); Blue Cross Blue Shield of Alabama (East South Central); Blue Cross and Blue Shield of Illinois (Illinois–Indiana); Blue Cross and Blue Shield of Oklahoma (Heartland); Blue Cross and Blue Shield of Texas (Texas); Cigna (Southwest); HealthPartners (Minnesota–Wisconsin); Independent Health Association (New York–New Jersey); Priority Health (Michigan); SelectHealth (Mountain); UnitedHealthcare (Ohio); and UPMC Health Plan (Pennsylvania). The 2016 Member Health Plan Study is based on responses from 31,867 commercial health plan members. The study was fielded in October through December 2015. For more comprehensive health plan rankings for all 18 U.S. regions, please visit www.jdpower.com. Media Relations Contacts John Tews; J.D. Power; Troy, Mich.; 248-680-6218; [email protected] About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info About McGraw Hill Financial www.mhfi.com

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NOTE: 21 charts follow.

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Year / Project / Study Name

775

712

707

704

691

678

673

671

500 900

Kaiser Foundation Health Plan

UnitedHealthcare

Regional Average

Cigna

Aetna

Blue Shield of California

Health Net

Anthem Blue Cross of California

Source: J.D. Power 2016 Member Health Plan StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

J.D. Power2016 Member Health Plan StudySM

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Member Satisfaction Index RankingsCalifornia

(On a 1,000-point scale)


693

681

678

669

664

500 900


Anthem BlueCross BlueShield of Colorado

Regional Average

UnitedHealthcare

Cigna





for consumers:



Member Satisfaction Index RankingsColorado



715

700

694

690

689

686

674

673

669

653

500 900

Blue Cross Blue Shield of Alabama

Blue Cross Blue Shield of Louisiana

BlueCross BlueShield of Tennessee

Regional Average

Aetna

Humana

Anthem BlueCross BlueShield of Kentucky

UnitedHealthcare

Cigna

Blue Cross Blue Shield of Mississippi





for consumers:



Member Satisfaction Index RankingsEast South Central



756

712

697

690

687

686

685

500 900

AvMed

Humana

Cigna

Regional Average

UnitedHealthcare

Aetna

Florida Blue





for consumers:



Member Satisfaction Index RankingsFlorida



689

688

687

682

680

678

677

676

676

668

664

500 900

Blue Cross and Blue Shield of Oklahoma

Blue Cross and Blue Shield of Kansas City

Blue Cross and Blue Shield of Kansas

Aetna

Blue Cross and Blue Shield of Nebraska

Wellmark Blue Cross and Blue Shield of Iowa

Regional Average

Arkansas Blue Cross Blue Shield

Cigna

UnitedHealthcare

Anthem BlueCross BlueShield of Missouri





for consumers:



Member Satisfaction Index RankingsHeartland



708

697

684

678

674

666

663

658

500 900

Blue Cross and Blue Shield of Illinois

Regional Average

Humana

Aetna

UnitedHealthcare

Cigna

Health Alliance Medical Plans

Anthem BlueCross BlueShield of Indiana






for consumers:



Member Satisfaction Index RankingsIllinois–Indiana


718

716

699

698

669

500 900

Priority Health

Health Alliance Plan of Michigan

Regional Average

Blue Cross Blue Shield of Michigan

UnitedHealthcare





for consumers:



Member Satisfaction Index RankingsMichigan



749

711

704

700

698

683

676

500 900


Aetna

CareFirst BlueCross BlueShield

UnitedHealthcare

Regional Average

Cigna

Anthem Health Plans of Virginia





for consumers:



Member Satisfaction Index RankingsMid-Atlantic



711

695

668

666

660

653

651

648

648

500 900

HealthPartners

Humana

Blue Cross Blue Shield of Minnesota

Regional Average

Medica Health Plans

Anthem BlueCross BlueShield of Wisconsin

UnitedHealthcare

Dean Health Plan

PreferredOne





for consumers:



Member Satisfaction Index RankingsMinnesota–Wisconsin



714

697

681

672

663

660

622

500 900

SelectHealth

Blue Cross of Idaho

Regional Average

Regence BlueCross BlueShield of Utah

UnitedHealthcare

Aetna

BlueCross BlueShield of Montana





for consumers:



Member Satisfaction Index RankingsMountain



694

692

679

670

669

668

664

663

651

645

639

500 900

Anthem BlueCross BlueShield of Connecticut

Anthem BlueCross BlueShield of Maine

Anthem Health Plans of New Hampshire

Blue Cross Blue Shield of Rhode Island

Blue Cross Blue Shield of Massachusetts

Regional Average

Harvard Pilgrim Health Care

UnitedHealthcare

Aetna

Tufts Health Plan

Cigna





for consumers:



Member Satisfaction Index RankingsNew England



719

710

709

707

700

690

690

688

684

682

677

673

639

622*

500 900

Independent Health Association

MVP Health Care

Capital District Physicians' Health Plan

BCBS of Western NY and BS of Northeastern NY

Emblem Health

Empire BlueCross BlueShield

UnitedHealthcare

Aetna

Regional Average

Excellus BlueCross BlueShield

Cigna

Horizon Blue Cross Blue Shield

Oxford Health Plan

Independence Blue Cross





for consumers:



Member Satisfaction Index RankingsNew York–New Jersey


Note: * Small sample size (n=30-99)


734

719

715

708

695

692

686

679

676

656

500 900


Providence Health Plan

Group Health Cooperative

Regence BlueShield of Washington

Regence BlueCross BlueShield of Oregon

Regional Average

Cigna

Aetna

Premera Blue Cross

UnitedHealthcare





for consumers:



Member Satisfaction Index RankingsNorthwest



708

703

686

679

673

665

663

500 900

UnitedHealthcare

Humana

Aetna

Regional Average

Anthem BlueCross BlueShield of Ohio

Cigna

Medical Mutual of Ohio





for consumers:



Member Satisfaction Index RankingsOhio



698

696

686

681

679

671

670

666

652

640

500 900

UPMC Health Plan

Geisinger Health Plan

Capital Blue Cross

Highmark Blue Cross Blue Shield

Cigna

Regional Average

Independence Blue Cross

Blue Cross of Northeastern Pennsylvania

Aetna

UnitedHealthcare





for consumers:



Member Satisfaction Index RankingsPennsylvania



765

712

694

691

688

680

679

677

676

500 900


Cigna

Aetna

Anthem BlueCross BlueShield of Georgia

Regional Average

Humana

UnitedHealthcare

BlueCross BlueShield of South Carolina

Blue Cross and Blue Shield of North Carolina





for consumers:



Member Satisfaction Index RankingsSouth Atlantic



687

677

676

661

657

649

629

621

500 900

Cigna

Blue Cross Blue Shield of Arizona

Anthem BlueCross BlueShield of Nevada

Regional Average

UnitedHealthcare

Aetna

BlueCross BlueShield of New Mexico

Presbyterian Health Plan of New Mexico





for consumers:



Member Satisfaction Index RankingsSouthwest



696

690

688

687

686

672

500 900

Blue Cross and Blue Shield of Texas

Humana

Cigna

Regional Average

Aetna

UnitedHealthcare





for consumers:



Member Satisfaction Index RankingsTexas


Regions Included in the Member Health Plan Study



California

Colorado

East South Central (includes

Alabama, Kentucky, Louisiana,

Mississippi and Tennessee)

Florida

Heartland (includes Arkansas, Iowa,

Kansas, Missouri, Nebraska and

Oklahoma)

Illinois–Indiana

Michigan

Mid–Atlantic (includes Maryland,

Virginia and Washington, D.C.)

Minnesota–Wisconsin

Mountain (includes Idaho, Montana, Utah

and Wyoming)

New England (includes Connecticut,

Maine, Massachusetts, New Hampshire,

Rhode Island and Vermont)

New York–New Jersey

Northwest (includes Oregon and

Washington)

Ohio

Pennsylvania

South Atlantic (includes Georgia, North

Carolina and South Carolina)

Southwest (includes Arizona, Nevada and

New Mexico)

Texas

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D.

Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not

necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or

J.D. Power survey results without the express prior written consent of J.D. Power.




Award-Eligible Insurance Companies Included in the Study

Company Name CEO Name Company AddressAetna Inc. Mark Bertolini Hartford, Conn.Anthem, Inc. Joseph Swedish Indianapolis, Ind.Anthem, Inc. Mark Wagar Indianapolis, Ind.Arkansas Blue Cross and Blue Shield Mark White Little Rock, Ark.AvMed, Inc. Michael Gallagher Miami, Fla.BCBSM, Inc. Michael Guyette Eagan, Minn.Blue Cross & Blue Shield of Mississippi, A Mutual Insurance Company

Carol Pigott Flowood, Miss.

Blue Cross & Blue Shield of Rhode Island, Inc. Peter Andruszkiewicz Providence, R.I.Blue Cross and Blue Shield of Alabama Terry Kellogg Birmingham, Ala.Blue Cross and Blue Shield of Florida, Inc. Patrick Geraghty Jacksonville, Fla.Blue Cross and Blue Shield of Kansas City, Inc. Danette Wilson Kansas City, Mo.Blue Cross and Blue Shield of Kansas Inc. Andrew Corbin Topeka, Kan.Blue Cross and Blue Shield of Massachusetts, Inc. Andrew Dreyfus Boston, Mass.Blue Cross and Blue Shield of Nebraska Steven Martin Omaha, Neb.Blue Cross and Blue Shield of North Carolina, Inc. J. Wilson Durham, N.C.Blue Cross Blue Shield of Arizona, Inc. Richard Boals Phoenix, Ariz.Blue Cross Blue Shield of Michigan, Inc. Daniel Loepp Detroit, Mich.BlueCross BlueShield of South Carolina, Inc. David Pankau Columbia, S.C.BlueCross BlueShield of Tennessee, Inc. J.D. Hickey Chattanooga, Tenn.California Physicians' Service, Inc. Paul Markovich San Francisco, Calif.Cambia Health Solutions, Inc. Mark Ganz Meridian, IdahoCambia Health Solutions, Inc. Mark Ganz Portland, Ore.Capital BlueCross Gary St. Hilaire Harrisburg, Pa.Capital District Physicians' Health Plan, Inc. John Bennett Albany, N.Y.CareFirst, Inc. Chester Burrell Owings Mills, Md.Cigna Corp. David Cordani Bloomfield, Conn.Dean Health Plan, Inc. Frank Lucia Madison, Wis.EmblemHealth, Inc. Karen Ignagni New York, N.Y.Excellus Health Plan, Inc. Christopher Booth Rochester, N.Y.Geisinger Health Plan, Inc. Steve Youso Danville, Pa.Group Health Cooperative Scott Armstrong Seattle, Wash.Harvard Pilgrim Health Care Inc. Eric Schultz Wellesley, Mass.Health Alliance Medical Plans, Inc. Jeff Ingrum Urbana, Ill.Health Alliance Plan of Michigan, Inc. Wright Lassiter Detroit, Mich.




Award-Eligible Insurance Companies Included in the Study

Company Name CEO Name Company AddressHealth Care Service Corporation Paula Steiner Chicago, Ill.Health Care Service Corporation Paula Steiner Helena, Mont.Health Care Service Corporation Paula Steiner Albuquerque, N.M.Health Care Service Corporation Paula Steiner Tulsa, Okla.Health Care Service Corporation Paula Steiner Richardson, TexasHealth Net, Inc. Jay Gellert Woodland Hills, Calif.HealthNow New York Inc. David Anderson Buffalo, N.Y.HealthPartners, Inc. Mary Brainerd Bloomington, Minn.Highmark Health David Holmberg Pittsburgh, Pa.Highmark Health David Holmberg Wilkes-Barre, Pa.Horizon Healthcare Services, Inc. Robert Marino Newark, N.J.Humana Inc. Bruce Broussard Louisville, Ky.Independence Blue Cross, Inc. Daniel Hilferty Philadelphia, Pa.Independent Health Association, Inc. Michael Cropp Buffalo, N.Y.Kaiser Foundation Health Plan Inc. Bernard Tyson Oakland, Calif.Louisiana Health Service & Indemnity Company, PAC

Dr. I. Steven Udvarhelyi Baton Rouge, La.

Medica Health Plans, Inc. David Tilford Minnetonka, Minn.Medical Mutual of Ohio Rick Chiricosta Cleveland, OhioMVP Health Care, Inc. Denise Gonick Schenectady, N.Y.PreferredOne Insurance Company David Crosby Golden Valley, Minn.Premera Blue Cross Jeff Roe Mountlake Terrace,

Wash.Presbyterian Healthcare Services, Inc. James Hinton Albuquerque, N.M.Providence Health Plan Mike Cotton Beaverton, Ore.SelectHealth, Inc. Patricia Richards Murray, UtahSpectrum Health Systems, Inc. Joan Budden Grand Rapids, Mich.Tufts Associated Health Plans, Inc. Thomas Croswell Watertown, Mass.UnitedHealth Group Incorporated Charles Berg Trumbull, Conn.UnitedHealth Group Incorporated Stephen Hemsley Minnetonka, Minn.UPMC Health Plan, Inc. Diane Holder Pittsburgh, Pa.Wellmark, Inc. John Forsyth Des Moines, Iowa

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