{"id":13330,"date":"2012-11-30T13:45:45","date_gmt":"2012-11-30T20:45:45","guid":{"rendered":"http:\/\/stateimpact.npr.org\/idaho\/?p=13330"},"modified":"2013-04-14T19:09:17","modified_gmt":"2013-04-15T01:09:17","slug":"how-obamacare-creates-an-insurance-industry-ad-blitz","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/idaho\/2012\/11\/30\/how-obamacare-creates-an-insurance-industry-ad-blitz\/","title":{"rendered":"How Obamacare Creates An Insurance Industry Ad Blitz"},"content":{"rendered":"<div id=\"attachment_13380\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"Karen Early is the director of corporate communication for Blue Cross of Idaho, the state's largest insurer.\" href=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2012\/11\/Karen-Early.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-13380\" title=\"Karen Early, Blue Cross of Idaho\" src=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2012\/11\/Karen-Early-300x278.jpg\" alt=\"\" width=\"300\" height=\"278\" srcset=\"https:\/\/stateimpact.npr.org\/idaho\/files\/2012\/11\/Karen-Early-300x278.jpg 300w, https:\/\/stateimpact.npr.org\/idaho\/files\/2012\/11\/Karen-Early-620x575.jpg 620w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Molly Messick \/ StateImpact Idaho<\/p><p class=\"wp-caption-text\">Karen Early is the director of corporate communications for Blue Cross of Idaho, the state&#39;s largest insurer.<\/p><\/div>\n<p>One of Blue Cross of Idaho&#8217;s new television commercials opens with a chirpy jingle.\u00a0 &#8220;You&#8217;re protected in the sun, you&#8217;re protected when it rains,&#8221; the song begins.\u00a0 The pitch is clear: this is the insurer for you, no matter your lifestyle.<\/p>\n<p>For Blue Cross of Idaho, this is more than an advertisement.\u00a0 It&#8217;s a big step.<\/p>\n<p>&#8220;This is the first time the company has ever, in its 65 plus years of existence, actually gone out with a brand campaign to explain who we are,&#8221; says Karen Early, the company&#8217;s director of corporate communication.<\/p>\n<p>She says it&#8217;s a direct response to the <a href=\"http:\/\/www.healthcare.gov\/law\/index.html\">Affordable Care Act.<\/a>\u00a0 &#8220;Literally, the day after the bill passed was the day we all looked at each other and said, &#8216;Things are going to change a lot,&#8217; Early says.<!--more--><\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/www.youtube.com\/embed\/8UgXV5oF9hA\" frameborder=\"0\" width=\"560\" height=\"315\"><\/iframe><\/p>\n<p>From the insurers\u2019 perspective, a big change the health care law brings is this: there will be many more people buying insurance in the individual market.<\/p>\n<p>By 2014, insurers won&#8217;t be able to deny anyone coverage based on a preexisting condition.\u00a0 There will be <a title=\"Idaho\u2019s Health Insurance Exchange Debate\" href=\"http:\/\/stateimpact.npr.org\/idaho\/topic\/health-insurance-exchange\/\" target=\"_blank\">online marketplaces<\/a> for comparing and buying insurance.\u00a0 What&#8217;s more, the Affordable Care Act will subsidize the cost of health insurance purchased through those exchanges, and set limited penalties for people who don\u2019t buy insurance.<\/p>\n<p>From there, Early says, it\u2019s simple math.<\/p>\n<p>&#8220;We have about a 20 percent un-insurance rate in Idaho,&#8221; she says.\u00a0 &#8220;That\u2019s roughly 300,000 people.\u00a0 Many of those people are going to be eligible for some level of subsidy to buy health insurance.\u00a0 If even half of those people start shopping, that\u2019s 150,000 new people in the marketplace that we have not seen before.&#8221;<\/p>\n<p><em><\/em>And that\u2019s a business opportunity, says Brian Wieser, a senior analyst with New York-based Pivotal Research Group.<em>\u00a0 <\/em>&#8220;Now we\u2019re in a situation where, for the first time, at scale, it will be in the interests of health insurers to market directly to consumers,&#8221; he says.<em><br \/>\n<\/em><\/p>\n<p>Wieser isn\u2019t a health insurance guy.\u00a0 He\u2019s <a href=\"http:\/\/www.nytimes.com\/2009\/03\/23\/business\/media\/23adcol.html\" target=\"_blank\">spent much of his career forecasting advertising spending<\/a>.\u00a0 This summer, when the Supreme Court upheld the Affordable Care Act, he made a prediction.\u00a0 Health insurers would soon vie for individual customers in a way they never had before, just as Blue Cross of Idaho has already begun to do.<\/p>\n<p>&#8220;It\u2019s a relatively rare example of a situation where a change in government policy leads to the creation of a new advertising category,&#8221; Wieser explains.<em><br \/>\n<\/em><\/p>\n<p>He can only think of one comparable case: the pharmaceutical industry.\u00a0 In 1997, the FDA relaxed regulations on consumer advertising.\u00a0 Since then, drug companies\u2019 ad spending has skyrocketed.<\/p>\n<p>Now, Wieser says, think about the way most people get insurance.\u00a0 They get it through their jobs. Because of that, insurers have focused on what\u2019s called business-to-business marketing.\u00a0 They\u2019ve spent their time pursuing contracts with employer groups, not courting individual customers.\u00a0 Now, the Affordable Care Act could give birth to a $2.5 billion direct-to-consumer ad category.<\/p>\n<p>The Blue Cross and Blue Shield Association&#8217;s Cynthia Rolfe agrees that many companies &#8212; not just Blue Cross of Idaho &#8212; are thinking about how to adjust to the market changes that come along with the health care law.<\/p>\n<div class=\"related-content alignleft\"><h4 class=\"related-header\">Related<\/h4><div class=\"links\"><h5>Posts<\/h5><ul><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/understanding-the-number-of-idahoans-who-will-be-eligible-for-insurance-under-obamacare\/\">Understanding The Number Of Idahoans Who Might Get Insurance Under Obamacare<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/insurance-exchange-delay-gives-gov-otter-more-time-to-get-guidance-from-feds-lawmakers\/\">Insurance Exchange Delay Gives Gov. Otter More Time To Get Guidance From Feds, Lawmakers<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/how-idaho-is-trying-to-boost-its-number-of-doctors\/\">How Idaho Is Trying To Boost Its Number Of Doctors<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/fewer-workers-covered-by-longstanding-health-insurance-plans-as-law-takes-effect\/\">Fewer Workers Covered By Longstanding Health Insurance Plans As Law Takes Effect<\/a><\/li><\/ul><\/div><div class=\"topics\"><h5>Topics<\/h5><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2012\/06\/Capitol-Wide-Shot-ERS.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/idaho\/topic\/health-insurance-exchange\/\">Idaho&#8217;s Health Insurance Exchange Debate<\/a><\/p><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2011\/12\/12-9-Medicaid-60x60.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/idaho\/topic\/medicaid\/\">An Essential Guide to Idaho&#8217;s Medicaid Program<\/a><\/p><\/div><\/div>\n<p>&#8220;Since the Affordable Care Act was passed, a lot of insurers have said &#8216;I need to reconsider what I\u2019m communicating,'&#8221; Rolfe explains.\u00a0 &#8220;The big shift is from selling to a distribution channel to creating that relationship with the end user.&#8221;<\/p>\n<p>Before you get too worked up at the prospect of health insurers pouring money into marketing campaigns, consider one other aspect of the Affordable Care Act.\u00a0 It limits how much insurers can spend on overhead &#8212; like advertising &#8212; compared to how much they spend on what their customers really care about: health care.<\/p>\n<p>&#8220;Blue Cross can invest as much money as they want in advertising,&#8221; explains Karen Pollitz, a senior fellow at the non-profit Kaiser Family Foundation, &#8220;but they\u2019d better get a really good return on it, because there is this overriding limit on how much of the premium dollar you can spend on non-claims costs.&#8221;<\/p>\n<p><em><\/em>From Pollitz\u2019s perspective, perhaps insurers\u2019 flurry of preparation is a good sign.<em>\u00a0 <\/em>&#8220;Insurers are getting ready,&#8221; she says.\u00a0 &#8220;They\u2019re getting ready for 2014. We\u2019ve had a whole lot of uncertainty for the last three years about \u2013 is this going to happen?\u00a0 It&#8217;s going to happen!&#8221;<\/p>\n<p>When it does, the individual insurance market will start to look a lot more like the group market.\u00a0 And insurers want to be sure it\u2019s them \u2013 their coverage, and their brand \u2013 that all of those new buyers think of first.<\/p>\n<p>To listen to an audio version of this story, <a href=\"http:\/\/stateimpact.npr.org\/idaho\/health-insurers-compete-for-customers-as-obamacare-marches-forward\/\" target=\"_blank\">click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of Blue Cross of Idaho&#8217;s new television commercials opens with a chirpy jingle.\u00a0 &#8220;You&#8217;re protected in the sun, you&#8217;re protected when it rains,&#8221; the song begins.\u00a0 The pitch is clear: this is the insurer for you, no matter your lifestyle. For Blue Cross of Idaho, this is more than an advertisement.\u00a0 It&#8217;s a big [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":13380,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[119,65,103],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/13330"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/comments?post=13330"}],"version-history":[{"count":0,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/13330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media\/13380"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media?parent=13330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/categories?post=13330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/tags?post=13330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}