I was rereading a post by Greg Scandlen in his Consumer Power Report. His Aug 1 edition uncovers one reason why the HSA promise is seen by some to be gaining adoption slowly: namely, the large comprehensive insurance companies that have purchased HSA innovators like Definity Health and Lumenos have very little reason to want to see them succeed.
I’ve attached the full article below, as I can’t figure out where to link it. I hope Greg doesn’t mind. I’ve been amazed to not see any airplay on this story through the blogosphere.
In short, the HSA account, involving significantly different risks and incentives for its purchaser is having the savings gutted via risk pooling. Despite having set up very different pricing, incentives, account structures, and everything else, for some reason year over year premium increases are being pooled– lowering slightly the amount paid by the majority in PPOs, but in essence destroying the year over year savings seen in the HSA population.
Insurers are beginning to realize that its not just the one time decrease in premiums that make HSAs dangerous for their margins, but also the year over year decline in CAGR. And this is in a system without transparent, shoppable prices or clear service differentials.
There is an upcoming battle coming between employers and brokers and insurers and the fallout will be interesting to watch…
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As we hear more and more about various Health 2.0 company launches, its interesting to see what’s happening to the first wave of companies claiming they would change healthcare (post the Web 1.0 pack including Healtheon/WebMd, HealthMarket, HealthAllies, etc.)
As I posted recently, Revolution Health appears to be going the way of Steve Case’s previous company AOL. Traffic has tailed off (yikes! that looks scary) and the company’s hired a bank to explore options. Given that they’re not IPO or acquisitions, its a safe bet to assume that management doesn’t see much opportunity in the property.
Recently checked in on Xoova (formerly Doctors Direct), which I hadn’t heard much from in 2008 and their website hasn’t come up in a few days. Have they joined the deadpool? Anyone hear anything from them of late?
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Image by Getty Images via DaylifeSteve Case’s Revolution Health hasn’t quite lived up to the promise trumpeted in early days. Recent rounds of layoffs, changes in overall strategy, and the hiring of an investment bank to explore sales lead one to think that Revolution is closer to circling the drain that it is carrying the banner of a new approach to healthcare focused on the consumer.
However, one recent rumor about a merger between Glam and Revolution Health reminds us of the direction that health publishing (and potentially health care delivery) are likely to go if we believe that consumer decision-making is important.
As drug company ad budgets have buoyed Madison Ave and increasingly entered consumer lexicons, women are important health care decisionmakers and natural combinations between women’s interests and health decision-making could start to chip away at the insurance- and pharma/device- dominated M&A plays, to add further variety to the technology players already rattling sabers at the gates.
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