What You Should Know:
– A new study by J.D. Power reveals significant shortcomings in the digital experiences offered by health insurance providers in the United States.
– The J.D. Power U.S. Healthcare Digital Experience Study found that a surprising 42% of insured adults have encountered problems using their health insurance company’s website or app in the past year.
Health Insurance Digital Tools Fall Short for Millions
The inaugural J.D. Power U.S. Healthcare Digital Experience Study is based on evaluations from 5,590 members of the 14 largest Medicare Advantage plans and 15 largest commercial member health plans in the United States. The study was fielded from October through December 2023. The study sets a benchmark for leading carriers vs. their industry peers and explores overall website / mobile app functionality and the relative importance of various features and capabilities to plan members.
Key findings of the report include:
- Widespread Difficulty: A surprising 42% of insured adults reported encountering problems using their health insurance provider’s digital channels within the past year.
- Lagging Behind: Health insurance companies significantly trail other industries in terms of user experience. The average satisfaction score for health insurance digital experiences (646 for commercial plans, 629 for Medicare Advantage) falls short of averages in property and casualty insurance (700), self-directed wealth management (718), and even retirement plans (685).
- Fundamental Flaws: Nearly a third (32%) of health insurance websites and apps lack basic functionality and intuitive information organization. Only 21% excel in areas like explaining coverage details, managing deductibles, and offering telehealth services.
- Impact on Employers and Retention: A positive digital experience with a health insurance provider can significantly improve employee satisfaction with their employer. The study found that among plans with high satisfaction scores (801 or above), 53% of members reported a more positive view of their employer. Similarly, 89% of members with high-scoring Medicare Advantage plans indicated a strong likelihood of renewing their coverage.
“Healthcare can learn from other industries in relation to leveraging digital to transform the customer experience,” said Christopher Lis, managing director of global healthcare intelligence at J.D. Power. “World-class healthcare organizations are looking to banking, finance, retail and hospitality, among other industries, to gain insight into best practices to create excellence in omnichannel digital transformation. When healthcare is compared with other sectors, many lessons can be learned and integrated into the journey toward transformation.”
