Dec 1, 2006 By:
Tracey Walker Managed Healthcare Executive
The rise in popularity of consumer-driven healthcare (CDHC) will challenge HMOs to be at the top of their game, say industry
watchers.
"HMOs, both local as well as regional players, are coming under the same pressure that the national managed care carriers
are facing: the need to offer innovative products and services, and provide consumer support which effectively drives both
quality improvement and cost efficiency," says Brian Dolan, executive vice president of ActiveHealth Management, a health
management, data analytics company based in New York.
In order to remain relevant, HMOs will need to focus on the consumer choice aspect of the rapidly evolving CDHC market, according
to Shawn Jenkins, CEO of Benefitfocus, a provider of CDHC software and services located in Charleston, S.C. "HMOs have done
a good job managing healthcare costs for employers and health plans," Jenkins says. "Consumer-driven plans are going to challenge
HMOs for market share."
Keeping prices competitive and adding more choice to the plans will help HMOs compete with the new CDHC offerings on the market,
agrees Chini Krishnan, founder and CEO of Mountain View, Calif.-based Vimo, a resource for consumers and small businesses
shopping for healthcare and comparing healthcare costs. "Plan offerings should be more personalized, with added-value features
built into each plan so that they can be customized to meet specific needs of consumers," Krishnan says. "Consumers aren't
just satisfied with CDHC because of price, but also the benefits the plans have to offer." —Tracey Walker
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