We cannot guarantee that the content will display correctly while using Internet Explorer. To have the best browsing experience, please upgrade to Microsoft Edge, Google Chrome or Safari.

July 10, 2020

Measuring Digital Health Maturity: The Adoption of Digital Health Solutions by Payers in the US.

Reports
HealthXL Research Team
&

For long, healthcare payers have been digital laggards, seemingly reluctant to embrace the many opportunities and benefits digital (health) has to offer. Digital disruption, however, has begun encroaching on the industry! Slowly but surely we are seeing payers explore and embrace the true value and potential of digital and yet, it is difficult to ascertain to what extent leading insurers are actually engaging with digital to drive real change. With this in mind, this quarter, we assessed the digital health maturity of leading plans in the United States.

A recap of the self-assessed maturity of some of the top US health plans

Payer coverage is heavily dominated by six large health plans, however, plan innovation and new entrants are changing the landscape. Digital (health) offers payers many great opportunities to tackle some of the industry’s greatest challenges. The potential modalities of engagement are manifold and the solution types are even more diverse - ranging from screening and diagnostic solutions to administrative focused solutions. Digital health can help payers improve member satisfaction, increase efficiency, whilst lowering costs, create better member outcomes and collect higher quality member data. Payer investments in and partnerships with digital health companies have grown nearly exponentially since 2013 (see Humana’s investment in Livongo; Aetna’s partnership with Talkspace etc.)

Increases in investment acquisition and partnerships over the previous 5 years
Increases in investment acquisition and partnerships over the previous 5 years

While there is clear evidence that payers are engaging with digital, we delved deeper in this latest report, honing in on digital health strategy & vision, investments & partnerships, outcomes & impact, culture & leadership, as well as resources & support. We asked the top health plans directly and here is an excerpt of what they said about their digital maturity:

Strategy and vision

Our investigation suggests that payers are actively engaging in digital health, with nearly half of respondents having a solid digital health strategy in place. Our data also revealed that payers are active participants in the investment craze - 88.8% told us that they invest moderately to extensively in digital. As the world adjusts to living alongside Covid-19 and the remote ways of life, we expect this figure to continue to rise. So while initial investments in this space may have been tentative and high-risk, engagement with digital is now essential for business to remain afloat alongside competitors. 

Extent of US payer investments in digital health 

Outcomes and impact

We investigated how outcomes and impacts of digital health solutions are measured and if they align with organization and member objectives. Currently, digital health initiatives reach as little as 35,000 members and as many as 2 million. Despite the enormous potential, less than half of plans say they have been able to demonstrate positive member outcomes and impact through these initiatives. This result reveals that although the value of digital health is evident and intrinsic to business solutions, ROI is more difficult to establish (in the short term) and may take longer to quantify.

Range of members impacted by digital health initiatives
Range of members impacted by digital health initiatives

Culture and leadership

Digital is gaining traction and payers are focusing on creating an adaptive as well as flexible culture to facilitate digital transformation and innovation. We found that over half of payers adopt a digital-first mindset when it comes to finding new solutions. Although positive and encouraging, these organizational tendencies do not necessarily translate into meaningful initiatives, unless, they are truly championed at the top. 

Extent of digital first mindset among payer organizations
Extent of digital first mindset among payer organizations

Resources and Support

We discovered that payers are well resourced to manage their transition to digital. 75% have dedicated budgets and funding in place to support their digital health strategy. This result is very reassuring as access to essential resources and support sets the scene for a successful digital health journey!

Extent of digital strategy and dedicated digital health funding among payer organizations
Extent of digital strategy and dedicated digital health funding among payer organizations


So, what next? 

Results of our assessment demonstrate a clear digital evolution in the US payer market. Health Plans are aware of the opportunities and have a clear digital health vision and focus. The majority of the plans we spoke with through the course of this report have been dabbling with digital health initiatives more actively than we previously knew. This surprised us - in a good way! However, experimentation with new business models, large scale investing and partnering across the spectrum outside of ‘member wellness’ or ‘employee wellness’ is still in its nascency. 

We have the data and we’ve laid out the facts! Now we want your opinions!  For payers, this report shows how you stack up in your digital journey against your competitors. If you work in the payer healthcare space, and would like to provide us with your feedback or participate in our post-report survey, get in touch with us! 

The full report is accessible to all HealthXL members on our Insights Platform. 

Not a member, but would like a copy of the report? You can get a free preview of the report here. If you would like to get access to the full report, contact our customer team here.



We can provide an introduction on your behalf so that you can contact them directly with any questions/queries on this topic. Simply click on the link below to request an introduction.

We can provide an introduction on your behalf so that you can contact them directly with any questions/queries on this topic. Simply click on the link below to request an introduction.

Request an Introduction

We can provide an introduction on your behalf so that you can contact them directly with any questions/queries on this topic. Simply click on the link below to request an introduction.

Request an Introduction

Ready to read more? HealthXL members can access the full peak of the report on the HealthXL Community Hub.

Not yet a member of HealthXL? Download your 11 page snapshot of the report.

Download your 11 page snapshot

Connect with peers and share insights

Don't miss out on the discussion of the latest insights and reports on digital health. Meet with peers and take a deep dive for 75 minutes. Unlike at webinars, you can freely exchange experiences and insights to solve challenges and design the future of DTx.

Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)

Masterclass: How to Navigate the NHS Digital Technology Assessment Criteria and NICE evidence guidelines

1st February @ 10AM GMT / 6PM AWST

Are you trying to increase adoption and use of your Digital Health solution across the UK's National Health Service? Join your peers in this meeting as they deep dive into this topic. Apply now to secure your place as seats are limited.

Featuring
Richard Bunney
Richard Bunney
Director, Cuniculo Ltd
Featuring
Richard Bunney
Richard Bunney
Director, Cuniculo Ltd
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)

Masterclass: Endpoints and Control Arms in Trials for DTx

15th February @ 10:45AM EDT

Proving clinical efficacy is one of the biggest challenges for DTx companies. Apply now to join HealthXL in this session to dive deeper into this topic with leaders in this field.

Featuring
Acacia Parks
Acacia Parks
Chief Science Officer, Twill
Featuring
Acacia Parks
Acacia Parks
Chief Science Officer, Twill
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)

The Role of the Consumer Experience in DTx

15th February @ 10:45AM EDT

As technology advances in all sectors (e.g. fintech, entertainment, etc), consumer behaviour changes and the expectations on user experience are higher than before. Apply now to secure your place in this meeting where you will dive deeper into this topic with your peers.

Featuring
Lee Shapiro
Lee Shapiro
Managing Partner, 7wireVentures
Featuring
Lee Shapiro
Lee Shapiro
Managing Partner, 7wireVentures
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)
Digital Therapeutics (DTx)

Masterclass: Incorporating Extended Reality (XR) in Physician's’ Daily Work

28th February @ 10:45AM EDT

The healthcare industry is undergoing a digital transformation and extended reality (XR) technologies such as virtual reality (VR) and augmented reality (AR) are expected to play a significant role in this change in the next few years. Apply now to join this Masterclass led by Nemanja Kovačev, MedTech Expert at HTEC Group.

Featuring
Nemanja Kovačev
Nemanja Kovačev
MedTech Expert, HTEC Group
Featuring
Nemanja Kovačev
Nemanja Kovačev
MedTech Expert, HTEC Group

Are you a HealthXL Member? See the Full Report Here

Non-HealthXL Member? You can purchase the report HERE

HealthXL Digital Health Meetings

Want to join the discussion now?

Join our Digital Health Meetings and take a deep dive for 75 minutes into topics like digital therapeutics, patient support, telehealth, clinical trials, dermatology and many more. These Meetings are not regular webinars: No audience, no recording and no hiding behind a screen. You actively participate in a discussion to solve your present challenges and design the future of digital health. And with a free account on our Community Hub, you stay connected and up-to-date on the latest news and insights, allowing you to fully immerse yourself in the topic before, during and after.

Digital Health in Oncology
31st January @ 10:45AM EDT

Are Hospitals the Right Partner for Digital Health Companies in Oncology?

Digital health in oncology is still a very raw and undefined practice with companies still searching for a best approach to put these solutions into the patients' hands. Join this peer-to-peer conversation to deep dive into this discussion.

Eoin Tabb
Featuring
Eoin Tabb
A/ Chief II Pharmacist, Cancer Services, HSE
Clinical Trials Innovation
1st February @ 11AM EDT

HealthXL Webinar: The Potential of AI in Drug Discovery

The drug discovery process has traditionally been costly and very time-consuming. Join this Webinar to deep dive into this topic with senior leaders in this area.

Armen Vidian
Featuring
Armen Vidian
Digital Health Venture Capitalist
Digital Therapeutics (DTx)
1st February @ 10AM GMT / 6PM AWST

Masterclass: How to Navigate the NHS Digital Technology Assessment Criteria and NICE evidence guidelines

Are you trying to increase adoption and use of your Digital Health solution across the UK's National Health Service? Join your peers in this meeting as they deep dive into this topic. Apply now to secure your place as seats are limited.

Richard Bunney
Featuring
Richard Bunney
Director, Cuniculo Ltd
Telemedicine & Virtual Care Delivery
2nd February @ 10:45AM EDT

Masterclass: How to Make Value-Based Health Care (VBHC) work with Digital Health?

Would you like to learn more about value-based health care models (VBHC) and the interplay between these systems and digital health solutions? Join HealthXL in this Masterclass led by Matt Hickey to deep dive into this topic. Seats are limited so apply now to secure your place.

Matt Hickey
Featuring
Matt Hickey
CEO, The Health Value Alliance

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

We cannot guarantee that the content will display correctly while using Internet Explorer. To have the best browsing experience, please upgrade to Microsoft Edge, Google Chrome or Safari.