Easily Master the Art of Comparing Health Insurance Competitors

All companies need to know how they want to differentiate themselves from their competitors.  In other words, they need to know their target demographic. The question then becomes: Is that demographic choosing my company?

Your business model must align with your target demographic. If you want to be known as the low cost provider, you must make sure that you ARE the low cost provider. And you also must ensure that you retain that targeted status.

For example: Comparing health insurance competitors for an individual male applicant, age 32, in zip code 80525. He is looking for insurance with a rate below $100 per month ($600 semi-annually; $1200 annually). He has a choice of 2 different companies and 14 different plans. There are some striking differences between the options available. I have highlighted 4 of them below:

The above table contains actual available plans (coverage dates are 9/1/2011, and some items of the plans were omitted for the example). Both companies seem to be going for “low cost provider” since they have rates below $100 per month. But the major difference is how the customer is treated if something were to happen to them. Company B’s Out of Pocket Maximum is MUCH lower than Company A.

This trend is true between the two companies across all 14 plans available to this individual given his demographic and rate preference. I'll pose the question again, do the statistics support your target differentiator?

This data can measure the position of your company whether you are striving for the lowest cost for coverage, most comprehensive coverage, or any other niche you are interested in owning. The more you know about how your plans compare to your competitors, the more informed you will be in positioning yourself in the marketplace.  It may be shocking to learn just how simple comparing health insurance competitors can be.