Winning Under ACA New Entrants Are Key

May 22nd, 2013

www.SantiagoSolutionsGroup.com  t: 818.736.5661  Carlos@SantiagoSolutionsGroup.com

Housekeeping
• Submitting Questions
– Just click the Q&A button on the upper left of your screen and type them into the box

• Technical Difficulties
– Call 888-506-3671 for MeetingBurner support

• Archived Recording
– An online archived video will be available to view after the meeting

• You are on Mute
– As you all probably know by now, everyone else is on mute, so only those of us in the presenting room can be heard

 2013 Santiago Solutions Group Inc.

2

About the Presenter
Carlos is a nationally-recognized business strategist. He is known for his innovative branding, segmentation and ROI analytics. Carlos founded Santiago Solutions Group in 2000, developing proprietary econometric methodologies for analysis of the multicultural segments. Over the last 12 years, he has guided strategic growth, corporate planning, product branding, consumer engagement, and social marketing strategies for organizations such as AARP, Campbell’s Soup, GMAC Mortgage, Health Net, HP, Humana, Johnson & Johnson, Nestlé, and many others.

 2013 Santiago Solutions Group Inc.

3

Context
– Preparing for massive change

Greatest challenge and opportunity since Medicare Part D
– Extremely hectic time

132 days to Open Enrollment
– Even more limited resources

Teams are playing double duty

 2013 Santiago Solutions Group Inc.

4

Opportunity is Here!

 2013 Santiago Solutions Group Inc.

5

3 in 10 of Immediate New Growth Opportunity for
Uninsured under ACA originates from Hispanic segment
USA Total Uninsured Newly Eligible for Subsidies
100-400% FPL

African Am 3.2 14%
Hispanic 7.0 29%

Asian 0.5 2%

White NH 13.2 55%

Total = 23.9M
Sources: SSG Analysis of self reported data per Scarborough 2011-2012 and Census ACS
 2013 Santiago Solutions Group Inc. 6

Hispanics represent an even greater source of
growth in large markets…
Chicago Currently Uninsured & Newly Eligible for Subsidies 100-400% FPL

In Chicago metro, 4 in 10 uninsured eligible (100-400% FPL) are Hispanic Hispanic 321K 44% NH 403K 56%

Total = 724K
Sources: SSG Analysis of self reported data per Scarborough 2011-2012 and Census ACS
 2013 Santiago Solutions Group Inc.

7

Millennials are also critically important
Denver Uninsured Distribution within Generation
Total = 341K 100% 126K 115K 100K

80% 60% 40%

43%

40%

24%

• Millennials represent a substantial portion of the currently uninsured • In many large & medium-sized cities, such as Denver, Millennials are heavily Hispanic

76% 57% 60%

20%
0%

Millennial (18-29)

Gen X (30-44)

Boomer (45-64)

NH

Hisp.
8

Sources: SSG Analysis of self reported data per Scarborough 2011-2012 and Census ACS
 2013 Santiago Solutions Group Inc.

Hispanics are Somewhat different
Currently Uninsured & Newly Eligible for Subsidies 100-400 FPL

NonHispanic
• Younger • Socioeconomic level • Inexperience in health insurance decisions

Hispanic

Foundational Similarity
 2013 Santiago Solutions Group Inc. 9

Hispanics are Somewhat different
Currently Uninsured & Newly Eligible for Subsidies 100-400 FPL

NonHispanic
• Younger • Socioeconomic level • Inexperience in health insurance decisions

Hispanic
• Cultural imperatives • Attitudes & behaviors • Slow to trust

Foundational Similarity
 2013 Santiago Solutions Group Inc. 10

Capturing Hispanics doesn’t require a different plan,
it calls for an integrated plan

Distribution

Messaging

Differentiated Value Proposition
 2013 Santiago Solutions Group Inc. 11

Capturing Hispanics doesn’t require a different plan,
it calls for an integrated plan

Messaging
• Potential members and influencers • Cultural knowhow • Emotional connection
Differentiated Value Proposition

Distribution
• Wrap-around • Customer Experience

 2013 Santiago Solutions Group Inc.

12

Let’s get Started!

 2013 Santiago Solutions Group Inc.

13

Focused Approach

Nurture Customer Experience

Simplify Communications Capture Low Hanging Fruit

Foundation of Trust
 2013 Santiago Solutions Group Inc. 14

Tip # 1

Brand Trust is key in Attracting Previously Uninsured

 2013 Santiago Solutions Group Inc.

15

Tip # 2

Start with Low-hanging Fruit
a) Assess your strengths b) Find critical mass c) Leverage partnerships with established entities among Hispanics

 2013 Santiago Solutions Group Inc.

16

Tip # 3

 2013 Santiago Solutions Group Inc.

17

Tip # 4

Enhance your Customer Experience
Extremely Satisfied Members… More likely to Recommend & Learn from Friends

Hispanics tell an average of 7 family members and friends about +

Hispanics tell an average of 5 family members and friends about Hispanics are more likely than NH to learn about Medicare Advantage plans from friends & relatives
 2013 Santiago Solutions Group Inc. 18

Tip # 5

Engage THEIR way!
Great opportunity for Word-of-Mouth…

Digital
An enabling tool for your ACA strategy…

 2013 Santiago Solutions Group Inc.

19

Capturing Hispanics Under ACA is

within your reach
Opportunity is knocking 1. Follow a Focused Approach 2. Take Short-Term efforts with impact 3. Look for Aligned Impact & Long-Term growth

 2013 Santiago Solutions Group Inc.

20

Q&A
Winning the Hispanic Market – New Entrants are Key
Have a Question?
 If you have a question, click the button above the presentation [Q&A] and type your question into the box  We will address as many questions as possible within our allotted time  If we are not able to answer your questions feel free to contact SSG at
Tatiana@SantiagoSolutionsGroup.com

Key Takeaways
• • 3 in 10 of the newly subsidized market will be Hispanic (total US) Millenials, many of whom are Hispanic, will also achieve critical mass in the new market The newly subsidized population shares many similarities; there are but a few key differences to address for successful outreach Tips
– – – – Establish trust Leverage relationships with cultural know-how Simplify all communications and touch points Enhance your Customer Experience


 2013 Santiago Solutions Group Inc.

About Santiago Solutions Group
The SSG team counts on decades of client experience working with national and regional health and wellness businesses. By incorporating econometric models and assessing a broad set of internal & external factors, we objectively discern the key drivers of growth.

We combine general market expertise with multicultural and generational segments to make our insights more precise and actionable. This knowledge reveals the total market opportunity and the drivers to profitable growth captured in a fitting roadmap.
As a partner we can guide your implementation across the organization with particular expertise on strategy, customer experience, marketing effectiveness, distribution and overall organization preparedness.

© 2012 Santiago Solutions Group Inc. Santiago Solutions Group Inc.  2013

22

SSG Senior Team
Carlos Santiago – President & Chief Strategist • Strategic planning expert coaching solutions for Fortune companies such as J&J, Health Net, Humana, AIDS Institute, AT&T, PepsiCo, Wells Fargo, Campbell’s, HP, Principal Financial, among others since 2000. Previously, Carlos led segment marketing for Bell Atlantic-Verizon, a $3B business unit overseeing brand strategy, retail channels, direct response and loyalty. Steve Moya – Senior Advisor • Immediate former chief marketing officer of Humana, a FORTUNE 100 company. Steve was founding partner of LatinWorks and senior vp/partner at Manning, Selvage & Lee and Fleishman Hilliard. Steve brings decades of high-level corporate experience in the consumer products and healthcare arenas, with expertise in strategy, marketing, segmentation, and PR/communications. Derene Allen - Partner • Strategic and tactical expertise in Latin America, the Caribbean and US Multicultural markets, Customer Acquisition, Customer Experience and Loyalty Programs including Humana, Cigna, AARP, Ortho-McNeil-Janssen, AMEX, Dannon, and Verizon. USF Adjunct Professor. Bessie Ramirez - Partner • Seasoned strategist who specializes in the application of insights in the development of strategic plans and the implementation of growth initiatives. Experienced in brand & category management, product development, multicultural planning and change management for companies such as Health Net, J&J Nutritionals, Nestlé, Home Depot, and Quaker.

 2013 Santiago Solutions Group Inc.

23