The insurance industry finds itself at a moment of paradox: it’s more vital than ever, yet it’s less trusted than at any time in recent memory. Skyrocketing costs, consolidation, regulatory complexity, opaque decision-making, and a lack of transparency with the general public have all helped to erode public confidence.
According to an American Hospital Association survey1:
- 54% of patients say health insurance premiums are too expensive
- 86% of patients say more transparency is needed from health insurance companies on which services need prior authorization, and why
- 55% of patients find health insurance companies responsible for the health care roadblocks they have experienced
Ouch.
Navigating the challenges of the health insurance industry
Health insurers exist to safeguard people from catastrophic medical expenses, and for the majority of Americans, they do just that. However, running a business that shields members from potentially paying millions out of pocket follows a complicated roadmap.
Insurers navigate challenges like increasing state and federal regulation, dramatic cost pressures from specialty pharmaceuticals and large-hospital system consolidation, and other economic trends, which puts extreme pressure on profitability.
Insurers address those challenges very differently, largely dependent on their culture. At Wellfleet, we face those challenges with an unwavering focus on integrity, transparency, building trust, and customer-centricity. It’s in our mission statement: “to deliver customer-centric insurance solutions with quality service and uncompromising ethics.”
Successful compliance and solid underwriting don’t make for an exciting newspaper headline, but as a Berkshire Hathaway company, where integrity is non-negotiable, it does pass Warren Buffett’s “newspaper test.”
This mentality of ethics & integrity drives Wellfleet’s approach to providing student health insurance: do the right thing. Focus on the member. Strive to deliver the right care, at the right price, to the student’s satisfaction.
We’ve built the industry’s only pharmacy solution tailored to students’ medical needs, offering 50+ medications at $0 copay. We’ve created self-help tools to help understand their plan and their benefits, like the WellFinder digital care navigation tool, and our mobile app, and CareConnect, giving student members easier access to behavioral health services.
Building reputation and trust through ethical leadership
Berkshire Hathaway’s approach to business is simple yet profound: think long-term (i.e., have a 100-year outlook) and act with complete integrity. As Buffett once said: “Lose money for the firm, and I will understand; lose a shred of reputation for the firm, and I will be ruthless.” The message: reputation and long-term trust are more valuable than quarterly earnings.
In a world of increasing cost pressures, stricter regulation, and a focus on meeting quarterly earnings, operating with transparency, integrity, and a long-term perspective not only helps us serve our members better but also helps us build and strengthen our reputation for dependability.
Resources
1 American Hospital Association. (2023 July). New consumer poll finds patients are concerned about commercial insurer barriers to care: infographic. Retrieved from, https://www.aha.org/infographics/2023-07-11-new-consumer-poll-finds-patients-are-concerned-about-commercial-insurer-barriers-care-infographic.
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