Now You can Buy Health Insurance Off the Store Shelf

People can now buy their health insurance plans from a UNH store.

UnitedHealth Group (UNH), the biggest medical insurance provider in the United States, has just tweaked the rules of the marketplace. Courtesy a novel initiative, people can now buy their health insurance plans from a UNH store. This is however, a calculated move. The Affordable Care Act has made health insurance affordable for many but has raised taxes on every American, eliminated tens of thousands jobs, and has already started undermining professions in the restaurant industry.

A Different Method

According to consultants Oliver Wyman, there will be 85 million insurance customers by 2014 with a combined purchasing power of $60 billion. UNH obviously wants to tap into this huge chunk of the populace. And while other insurance companies like WellPoint have chosen to walk down the avenue of branding to reach out to potential customers, UNH has decided to engage in a different way.

A Novel Way

The UNH outlet in Queens, New York, is one such “concept” store of sorts where you can walk in to browse through the various plans on offer at the iPad stations that dot the store. You can go through the self-guided tours while your kids busy themselves at the Xbox games console or be taken through the various benefit plans by the UNH store staff proficient in eight languages and even some Chinese dialects. These staff members are also knowledgeable on the day-to-day health concerns that may bug you. So while you take your time to decide on the best plan to buy for yourself or your family, you can also seek advice from them on doctors in the area, drug interactions, and attain some free tips on healthy cooking. And while you are here, take the opportunity to have your blood pressure checked.
Interest is rife amongst market watchers and analysts about the feasibility of selling medical plans like garments and shoes, in brick-and-mortar shops. According to Matt Fidler, VP at Highmark, UNH has made a smart move. Obamacare has empowered an additional 30 million Americans, while hamstringing and raising taxes on 150 million other Americans, including seniors, to buy private medical plans for themselves.
Even employers like Sears Holdings are encouraging their employees to opt for private medical plans of their choice; of course, Sears will bear a part of the cost of the plan. The U.S. insurance industry is witnessing a paradigm shift—from business owners and human resource managers choosing medical plans for their workforce to empowered individuals who are keen to buy private plans. Fidler feels that UNH has certainly grasped the first mover’s advantage in this retail insurance sales scenario.

Not Convinced

However, Marc Pierce of Stonegate Advisors, a consulting firm for health insurance companies, prefers to wait and watch before handing out his verdict. According to him, the success of UNH’s strategy purely depends on whether the insurance giant is able to convince its customers that their stores are not just promotional gimmicks but can actually provide solutions to their problems and answers to their queries.

Slow Start

Meanwhile, UNH’s one-year-old Queens store has managed to sell more than 4,000 plans up until last October of 2012, which is a pittance considering that the insurance company has 36.5 million customers. But these are early days yet and the company hopes to increase its customer base by providing personalized assistance and other health and wellness services to build their brand worth and motivate people to drop by their store and pick up a plan or two.