Download

Opportunities in a Dynamic
Global Healthcare Market
Anthony Hidell
Director
Business Development and Client Management
Cigna Global Health Benefits (Hong Kong)
September, 2013
1

Operating in over 30 countries & jurisdictions
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 2

Global Provider Network – Largest in the World
Netherlands
Norway
Sweden
Russia
Canada
USA
Belgium
United Kingdom
France
Portugal
Germany
Czech Republic
Italy
South Korea
China
Korea
Japan
Spain
Morocco
Switzerland
Bahrain
Saudi Arabia
Qatar
Kuwait
Oman
India
Shanghai
Taiwan
U.A.E
Myanmar
Hong Kong
Brazil
Paraguay
Argentina
Kenya
Tanzania
Botswana
Namibia
Dubai
Thailand
Malaysia
Singapore
Indonesia
Australia
Macau
Philippines
South Africa
New Zealand

Cigna Global Health Benefits Membership by Location
• #1 leader in the globally
mobile employee
market
11%
37%
20%
• Cover over 850,000
individuals around the
globe
• Largest provider of
corporate international
health care benfits,
including 40% of
Furtune 100 companies
6%
24%
2%
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 Cigna 4

GLOBAL Macro TRENDS driving transformation
Economic uncertainty
Aging populations and increasing rates of chronic disease
Unsustainable health care costs
Mass personalization and information transparency
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 5

Medical Inflation Outstripping General Inflation & GDP Growth
General Medical Trends
2009 2010 2011 2012 (Expected)
Global 10.20% 9.60% 9.80% 9.60%
USA 9.10% 10.80% 11.50% 11.80%
Hong Kong 6.80% 9.40% 10.00% 9.80%
Singapore 7.10% 8.70% 8.70% 8.40%
China 10.10% 8.30% 9.30% 9.30%
*Source: Tower Watson’s Global Medical Trends Report 2012
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 6

Strategy One: Focus on Prevention
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 7

ASIAN TRENDS driving THE NEED FOR CHANGE
Developed Markets
Developing & Emerging Markets
Economies
experiencing mild
growth
Growing middle
class
Economies
experiencing
greater growth
Emerging middle
class but some still
below poverty line
Growing elderly
population
Established
regulations and
healthcare systems
Overall a younger
population
Pressured
healthcare systems
with shortage of
quality care
Rising healthcare costs a
concern for government
and individuals
Government faced with significant
increase in healthcare costs for
“social provisioning”
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 8

Development model of global commercial health insurance
Creative
product
Development model of global commercial
health insurance
Health care
network
type
Medical
Product
Managed
type
Medical
Produce
Well-developed
product
Hospital
subsidized
products
Supplemental
products
Fundamental
product
Major diseases
Product
Limited protection
simple service
More service
Simple protection
and product design
Medical network, Healthy
service and Flexible design
9

A lot can CHANGE in a short period of time….
Shanghai Skyline – 1990
Pudong
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 Cigna 10

A lot can CHANGE in a short period of time….
Shanghai Skyline – 2010
Pudong
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 Cigna 11

Medical insurance
Medical Costs
Lost Productivity Costs
Presenteeism
- Loss of production
Absenteeism
-Doctor visits
-Sick leave
-Disability
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna 12

THE EVOLUTION OF THE CARE DELIVERY:
TRADITIONAL VS. NEW
TRADITIONAL MODEL: Based on volume
Passive users
Lack of
information
Less options
Paid on volume
Revenue
maximization
Limited coverage
Highly regulated
Financial benefit
Consumers Physicians and partners
Governments
Private carriers
and insurers
Engaged
Better informed
Value conscious
Rewarded for quality
outcomes
Optimal costs
Enhanced care
Private partnerships
Collaboration
Balanced value
propositions
NEW MODEL: Based on value
A sustainable model requires partnerships
13

BENEFITS OF CAC: ALIGNING SUPPLY AND DEMAND THROUGH VALUE-
BASED NETWORK BENEFITS AND REIMBURSEMENT
DEMAND
Customer engagement
Education
Value-based
benefits
Navigation
Motivation
Clinical
integration
Information
Value-based
reimbursement
Alignment of incentives
Health Care Professional Engagement
SUPPLY
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 14

CHALLENGES and opportunities FOR ASIAN MARKETS
Limited collaboration and mutual understanding amongst all
stakeholders
Highly regulated environment with pressure to keep public
healthcare affordable and accessible
Need of a sustainable network and infrastructure
Lack of incentives for health care providers (public and private)
to focus on value instead of volume
Influencing change behavior
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 15

Asian markets are at a
crossroads as to how
they shape their
healthcare model to
deliver value and quality
care for the population.
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 16

Thank you.
17