NETWORK AND PRODUCT DESIGN

Design and deploy competitive, and impactful “Big P” and “little p” healthcare products via high quality network structures and innovative benefit and program offering designs

The definitions of both network and product are dramatically evolving in an effort to deliver affordable and quality healthcare.

Network design is undergoing a period of significant innovation as the two traditional archetypes, broad PPO and managed HMO, are being upended by a proliferation of narrow, digital-first, network-within-a-network, COE, and other models. Payers are rapidly learning  that customer and market segment buying dynamics vary significantly, and need to be matched to achieve the 10% cost savings.

Small-p (benefit stack) product is being replaced by Big-P (comprehensive value proposition) product as employer sophistication creates a diverging set of expectations, and customer expectations continue to accelerate in a digital and tech-driven world.

Common issues we help our clients solve

How is my network performing today relative to the competition? Relative to potential?

What are the root-cause drivers (including actuarial spend analysis) of my current network performance barriers?

How can our network strategy help to rationalize and prioritize focus areas and create linkages to other functions (product, provider partnerships, etc.)?

What kinds of alternative networks could I design/implement? How would they compete in the market relative to current performance levels?

How can we optimize network and product design for distinct LOBs? Channels and customer segments?

What are the tech/IT architecture evolution and operating model implications to redesigning my network and product solutions?

What network design, contracting, and negotiations best practices should we employ in our contract/payment model design for network and products?

How can we infuse innovation and differentiation into our product strategy and design processes?

With mounting demand for something different, health plans have an opportunity to think more broadly about the definition of “product”

Source: Oliver Wyman analysis

Product 2.0 concepts

Health plans have the opportunity to reimagine the elements of product to create new, magnetic offerings for groups and individuals.

Virtual/Digital First

  • Drive services to virtual/digital vs traditional bricks-and-mortar
  • Lead with transactional care for PCP and some basic specialty care
  • Seamlessly access convenient physical support options (e.g., Rx, lab)
  • Virtual care may eventually be augmented by AI

Consumer Basket

  • Expand upon core medical/Rx benefits with consumer-centered offerings (e.g., fitness, nutrition, counseling)
  • Create appeal for traditionally lower utilizing segments
  • Feature-rich pre-paid bundles/subscriptions of services for specific care and “health+” needs (episodes and conditions)

Consumer Activation

  • Consumer pre-commitments to prescribed behaviors that are measured and rewarded
  • Pre-commitments are made at the point of purchase
  • Consequences for nonadherence, e.g. Premium increase, loss of “health+” services, migration out of preferred products

Modular/Configurable

  • Break apart fundamental benefit structure with user-configured buy ups
  • Increased consumer value proposition– “buy what you need”
  • Potential for multi-year offering, anchored to at-risk provider partners
  • Improved consumer access to health offerings beyond the typical insurance model

Case Studies

Oliver Wyman has successfully partnered with our clients to design and implement product and network strategies that drive enhanced innovation and affordability.

Developed and contracted two affordable provider networks for individual market products. Read more

Identified, sized, and prioritized a set of affordability initiatives to drive 2-5% total cost of care savings and create greater competitive differentiation for a regional health plan’s HMO network. Read more

Defined an actionable steerage strategy enabling up to $300-500M in savings and drove alignment around a consistent enterprise-wide point of view on steerage. Read more

Developed network strategy and coordinated market-facing readiness and preparation work to stand up a new set of Commercial and Medicare networks. Read more

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