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Predictive analytics has the power to change the way providers support health and wellness, equipping individual members with knowledge to manage their health and drive preventative care
In the 2012 Food & Health Survey, surveying consumer attitudes towards food safety, nutrition, & health, the International Food Information Council Foundation discovered that 6 out of 10 Americans have given a “lot of thought to their diet and exercise,” yet the majority of American still struggle to find the right mixture of habits to keep them healthy and active for the long haul.
Imagine if these same people had the ability to predict their future—and could predict the unforeseen damage, bodily decline, and disease these unhealthy habits would someday cause in the near future.
That crystal ball is not so far off.
When it comes to personal health, what changes would you make today, to change your future? What steps would you take now if you knew you could shape your health for the better tomorrow?
Thanks to advanced analytics, reshaping your future might not be as far-fetched as it may seem. Innovative health insurance plans are aggregating member data, analyzing it, and discovering trends that to empowers members with information to make better choices down the road.
Managing the member experience by gaining analytical insights is critical for payers as the health insurance marketplace becomes more competitive every year. Adding value with personalization helps insurance providers create meaningful relationships with members, fostering an environment where customer loyalty can thrive. As a win/win for members and insurance providers, it pays to be proactive with wellness programs spurring long-term health, informed by better insight into member health across a number of corresponding factors.
For example, let’s break down the business impact of chronic disease on insurance payers today: according to Centers for Disease Control, chronic diseases are responsible for 7 of 10 deaths each year, and they account for 84% of the nation’s health care costs. To substantiate that cost, another source states that Americans spend $432 billion per year to treat heart disease and stroke, $174 billion per year on diabetes, $154 billion per year on lung disease and $148 billion per year on Alzheimer’s disease.
Healthy members can directly benefit insurance payers’ bottom line. A mere 1% increase in savings across the aforementioned four chronic diseases would free up more than $9 billion in healthcare resources that the healthcare industry could use for research, facilities and profits. If these conditions could be identified in advance, how could they be addressed and managed more effectively?
Predictive analytics can help pave the way. Insurers and health care providers are gaining new insights from the influx of member data driven by the Affordable Care Act. The legislation has spurred an increase of Americans with health insurance coverage over the past two years, thereby generating a greater amount of member data to generate analytical insights. Assessing the widespread impact of health ailments today can lead to better diagnoses and early treatment while reducing costs across the board.
While it may take another one to three years for this data to mature, it has already started to yield insights the insurers did not previously have access to. This insight is valuable because it allows them to predict segments of the population who are most susceptible to chronic diseases, as well as those who are at the greatest risk of developing them.
Most importantly, this information can help improve members’ quality of life. Equipped with knowledge from predictive analytics, insurers can better engage with those members on wellness and prevention early in the customer lifecycle. They can build a stronger relationship from the get-go, fostering loyalty and improving member retention.
While health insurers may not have access to a crystal ball, advanced analytics can help them see into the future of members’ health issues, arming members with prevention methods and driving healthy business.