Stronger Patient Control, Online Privacy Shape Consumer Expectations

Increasingly, consumers want to exercise more control over their treatment options and expect stronger privacy guarantees online when it comes to sharing health information,
according to two studies released last week. The findings signal the need to develop campaigns that drive home "take charge" healthcare messages and instill confidence in your
security policies.

More than 83% of American adults surveyed by the Medtronic Foundation, a medical technology firm, said they were taking more personal responsibility for their health. The study
also found that when consumers need health information they are just as likely to consult friends, family, the Internet and books as they are physicians. However, this proactive
attitude is deflated during physician office visits, where more than 76% of those surveyed said they lacked "complete control" over the treatment options offered by the doctor.
These results were announced at The Patient Summit conference in Washington, D.C., where more than 300 healthcare providers, patient advocates and policy makers met to discuss the
implications of recent patient-empowerment trends.

The study's findings represent a two-fold challenge for healthcare marketers - while consumers may want the opportunity to drive healthcare decisions, they also want more
support and encouragement from physicians to do so.

Shopping Around

One of the best ways to tackle this issue is for employers to allow employees to shop for their own health coverage through defined contribution programs, says Dr. Regina
Herzliner of the Harvard Business School who spoke at the conference. This would go a long way toward giving consumers the healthcare accountability they crave while motivating
physicians to focus more on patient needs rather than health plan restrictions.

The option is starting to catch on with both employers and employees. More than two-third of large employers are considering a shift to defined contribution options, according
to market research firm Booz Allen.

And KPMG, another market research firm, found that 73% of employees surveyed at Fortune 1000 companies expressed interest in this kind of health benefits program.

Highmark Blue Cross Blue Shield in Pittsburgh, Pa., is positioning itself to ride this trend when it hits full force over the next three to five years. This month the managed
care organization launched BLUeCHOICE, an online insurance program that allows employees to choose from up to 16 different health plan options.

Providing this level of choice is similar to the vast options employees will have when employers hand over the health benefit reigns to them.

"Just as defined contribution 401(k) plans empowered employees to become more knowledgeable about their saving and more involved with their investments, BLUeCHOICE changes the
role of consumers with their healthcare.members will automatically become more involved," says Dr. Kenneth R. Melani, EVP of Highmark's strategic business development.

The program is being piloted at 30 to 50 small to midsize companies primarily in the technology sector. In January Highmark plans a wide-scale offering that will target
employers with 50 to 1,000 employees.

Overcoming Privacy Barriers

Highmark, like other healthcare organizations, is relying on the Internet as one of the best vehicles for delivering the increased healthcare choice and control consumers
crave. But a Cyber Dialogue study on online privacy sounds a cautionary alarm about the barriers to capturing consumer healthcare information. Among the 37 million online users
who are not surfing for e-health information, the survey's authors estimate that 6.3 million are not doing so primarily because of privacy and security concerns. The pressing
consumer fear is that the mere act of surfing for general health information may bring repercussions from insurers and employers, says Carolyn Gratzer, senior analyst in Cyber
Dialogue's health practice and co-author of the report. These concerns are more pronounced with minorities. While 49% of Caucasians online seek health information, only 37% of
African Americans, 37% of Asian Americans and 29% of Hispanics do so.

The findings, based on interviews with more than 1,000 Internet users, are especially disheartening for sites sponsored by insurance and pharmaceutical companies. Forty-eight
percent of health seekers say that knowing a site is sponsored by an insurance company would negatively affect their choice to submit personal information. Pharmaceutical company
sponsorship would cause 40% of health seekers to think twice before parting with similar information. But the news is better for research organizations, medical associations,
hospitals and disease-specific sites, where consumers have a higher level of trust. These sites are perceived as providing credible health information that is not influenced by
advertising or e-commerce.

Across the board, however, healthcare organizations will have to be more aggressive about promoting their online privacy policies to consumers. There is an overall lack of
understanding as to whether Internet privacy is protected, how it should be regulated and who should be responsible for any oversight. For instance:

  • 70% of online users say they don't know whether any current state or federal laws protect the privacy and confidentiality of personal medical information;
  • 20% think that there are no such laws; and
  • 6% believe that such laws do exist.

If you're looking to position your organization as a privacy proponent, consider these springboard opportunities:

  • Display your privacy policy prominently and in consumer-friendly language throughout your Web site
  • If your company falls into one of the less-trusted categories, consider forging an online relationship with a better trusted partner like a hospital, association or network of
    doctors.
  • Become a vocal advocate of privacy protection and education by sponsoring privacy debates and industry conferences.

(Medtronic, Diana Campau, 763/514-4920, Highmark Blue Cross, Jean B. Edwards, 412/544-8888; Cyber Dialogue, Grant Sanborn, 212/651-7000)

Most Trusted Health Sites

On a scale of 1 to 5, here are the sites that generated a rating of 4 or 5 by e-health information seekers, according to the Cyber Dialogue study.

Medical Research Institutions
44%
Medical Associations
42%
Hospitals
41%
Disease-specific Sites
32%
Medical-focused Sites
32%
Not-for-profit Groups
30%
Patient-run Sites
24%
Health News Sites
20%
Online communities
14%
Pharmaceutical Companies
14%
Portals
14%
Online Drug Stores
12%