Winning the Technology Race in the Fast-Growing Alternative Health Insurance Market
While the health insurance market has largely focused on plans that comply with the Affordable Care Act (ACA) since the bill passed in 2013, loosening regulations rising insurance costs have sparked an interest in alternative policies. With the number of Baby Boomers expected to reach 61 million, or 18% of the U.S. population, by 2030, new demand for private plans geared toward the elderly is also contributing to the market’s growth. According to global investment firm William Blair, the alternative individual health insurance market will likely more than double, from $1.5 to $2 billion to $4 to $5 billion, over the next several years.
As companies in this space prepare for significant growth, those who prioritize innovation will lead the way. As part of the GoHealth family, Creatix is positioned to capitalize on the powerful market trends driving investment in alternative plans. GoHealth has established itself as an industry leader through its fully integrated shopping platform, and Creatix is now working hand in hand with GoHealth to help millions across the U.S. access affordable health insurance options. For Creatix’s growing team of engineers, these market trends mean vast opportunities to build technical skills, advance professionally and make a positive impact.
A rapidly expanding field
While only 1 million people hold alternative insurance coverage plans currently, William Blair estimates this number could triple to nearly 3 million in the near future. Current trends driving adoption include:
- Rising costs for compliant plans. The shift to ACA-compliant plans has caused premiums to creep from $250 to nearly $500 per month over the last few years, so many consumers are looking for a coverage option that works for their health needs and their budget.
- Increased customization. Unlike ACA-compliant plans, alternative plans offer an array of customization options, allowing customers to choose from different coverage levels, deductibles and copays.
- Friendlier regulations. New developments like the repeal of the individual mandate are driving more consumers toward alternative health insurance plans, especially those not eligible for subsidies under employer-sponsored or other group plans.
- Broad demographic appeal. With 10,000 individuals reportedly becoming eligible for Medicare every day, the need for high-quality private plans is ramping up quickly. Another vast potential market for alternative health insurance is younger uninsured consumers — 17% of Americans between 19 and 35 have no medical insurance.
Overall, the alternative health insurance market is poised to grow quickly, and technology will play a major role in that growth. With many consumers expecting the ease and selection that comes with shopping online, digitally enabled insurance broker models are expected to represent 30% of the market by 2022, up from just 10% in 2008, William Blair reports. For businesses across the industry, a high-functioning technology stack will be essential for capitalizing on current and future opportunities.
Building technology to meet growing market demand
As part of the GoHealth family, Creatix is partnering with GoHealth to maximize the potential of the fast-growing alternative health insurance space. Since 2001, GoHealth has developed and introduced its leading marketplace technology successfully in a number of markets, including small group insurance, Medicare and life insurance.
GoHealth bridges a major industry gap, helping carriers gain access to consumers at scale while offering consumers the widest selection of quality insurance options. Its proprietary platform enables consumers to research, compare, and purchase affordable health insurance plans from national carriers, helping GoHealth earn a nod from William Blair as an “early leader in the health insurance technology industry.” The platform also offers end-to-end integration across the entire consumer lifecycle, from initial customer acquisition to ongoing support, markedly improving customer satisfaction and long-term retention.
As a seamless extension of GoHealth’s engineering team, Creatix works to build purpose-driven technology at scale. Our partnership dates back to 2015, when the two companies first collaborated on GoHealth’s vast platform to accommodate growing market demand. Early successes include the creation of GoHealth’s first decision support tool, which recommends insurance plans based on a few simple questions. This tool now provides customers with an easy way to navigate the complex selection process for one of America’s crucial family expenses. Since joining GoHealth earlier this year, Creatix has continued to build on these shared successes.
For our current and future team members, the alternative health insurance market’s upward trajectory means vast opportunities for professional growth. GoHealth has committed to investing in our team and talent, helping us attract the best people and giving them the resources they need to succeed. As GoHealth continues to build on its reputation as an industry leader, Creatix will focus on an array of technology initiatives across customer acquisition, marketing automation, artificial intelligence and machine learning, data engineering and analytics. Our team members have exposure to the latest tools and technologies, opportunities to operate them at scale, and the satisfaction of developing technology that makes a profound difference in the lives of millions of people.
Together, Creatix and GoHealth are perfectly positioned to drive innovation in the alternative health insurance industry. The field has a lot of room for growth — and our people will be the engine that keeps us on the leading edge.