Can Independent Health Advisors Help Consumers Make Better Decisions?

I attended a presentation this past week discussing health plan reactions to reform. One of my key takeaways was how new consumer attitudes and beliefs were driving change in the industry. A man-on-the-street video highlighted, among other topics, the diverse views around selecting health insurance and the trade-off between quality and price. While there was no consensus around what plans should specifically do, it was clear that consumers yearn for more empowerment as they make decisions about their health.

One of the new solutions described was deploying insurance-backed advisors to help patients choose the right coverage, especially in exchange markets. I think this is a good idea – having a representative walk consumers through the wide range of products can help match a person’s needs to the right product.

However, I’m not sure this model will work for all consumers, especially younger patients. The Internet has created savvy consumers, and any whiff of bias could turn these people off. I like the concept, but I think it could be taken a step further by creating health advisors independent of the industry.

I see this working like financial advisors today (or even rolled into existing financial services). These people would answer basic health questions and help improve health care literacy, whether it’s selecting the right insurance, settling a hospital bill, or understanding preventative medicine. While this could range in engagement (from an annual “checkup” to a 24/7 concierge service), the main focus would be to make healthcare understandable, especially the financial side that is rarely discussed.

The challenge is the business model. A fee-for-service model seems most logical, but could put this out of reach for many Americans. Any sort of rebates or kickback from insurers defeats the purpose and savings calculations, whether it’s vs. their previous plans or vs. expected medical costs, seem complex. Regardless of how this makes money, I think this hands-on service is the right way to customize healthcare to the individual and provide the empowerment consumers are looking for.