Commentary: The biggest story this month in health benefits comes down to one word: consolidation. Whether its the Aetna-Humana merger, CVS buying Target's pharmacies, or Willis and Towers Watson combining forces mass consolidation has benefits leaders and consumers alike wondering if this latest wave of consolidation will add up to less choice in the market. While
History shares good lessons on this topic. In the past, industry consolidation has made it more difficult for large incumbents to innovate, and often reduced incentives to invest heavily in new products and solutions. As these large-scale mergers and acquisitions go through, they will likely be focused on the business of integrating their teams and re-arranging their processes in an effort to achieve better operating efficiency.
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But when it comes to offerings that benefit consumers and employers, its natural for many to fear that fewer players will equal less choice in health plans, less differentiation and innovation in every area from member experience to productivity and management tools, and less willingness to accommodate employer requests from data access to customization.
But, theres good news. While these big mergers are grabbing our attention, there is an interesting trend happening at the other end of the market. In the last few years, health care startups have received an ever-increasing level of investment, suggesting that the days of innovation in health care arent over theyre just beginning. The numbers speak for themselves health care investing hit an all time high in the first quarter of this year, with U.S. medical startups raising a record
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Considering employers control the majority of the conversation by paying
This trend is why benefits leaders can breathe a sigh of relief. While the big players get bigger, theyre also opening up opportunities for, and partnerships with, the newest entrants to ensure a better experience for consumers and employers alike. A great example of this is visible in the rapidly changing market around the consumer experience of health care. Its here that tech-enabled health care companies are already gaining traction and driving results for customers.
Whether its
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So, theres a silver lining. As you consider your 2016 health benefits strategy, you can be confident that the
Rajaie Batniji, MD, DPhil, is chief health officer with Collective Health, a technology firm offering a cloud-based self-insurance platform for employers.