Crains New York - July 15, 2013 - (Page 13)

H E A LT H C A R E ‘It’s a tough environment to be doing all this against the incredible misinformation that is out there’ REPORT —Elisabeth Benjamin, vice president, Health Initiatives Community Service Society of New York, Page 14 Nonprofits’ new world FIDELIS Executive VP and COO David Thomas said health reform means Fidelis will have to set its insurance premiums for the very first time. Top NY insurer Fidelis, other carriers remake business models to prep for Obamacare 885K NUMBER OF FIDELIS MEMBERS in the state, most of whom have low incomes $4B BY BARBARA BENSON buck ennis Picture this: You run a company that has a fabulous opportunity to sell to a new market, to potential cusPREMIUM REVENUE for Fidelis tomers who have never had access to in 2013, up from $3.3B in 2012 your wares before. But there’s a catch: To reach them, you must create wholly new products and figure like Fidelis, specialize in Medicaid, out how to price them without los- Medicare, Family Health Plus and ing your shirt—and state regulators Child Health Plus. With Catholic roots, Fidelis has will be watching your every move. Welcome to the world of Fidelis long provided insurance to lowerCare, one of several New York City income New Yorkers. Its more than nonprofit health plans that will be 885,000 members—about half of making the leap to selling health them residents of New York City or coverage on the state-run online Long Island—make it the state’s largest insurer for New York statemarketplace debuting this fall. In response to the sweeping sponsored health insurance prochanges imposed by Obamacare, grams, or second-largest if MediFidelis, like other insurers, has over- care membership is included. hauled how it does business so it can Revenue this year from insurance participate in the New York Health premiums is estimated at $4 billion, Benefit Exchange, a key feature of up from $3.3 billion in 2012. A chunk of that revenue has been the federal health-reform law intended to make it cheaper and easi- reinvested in beefing up Fidelis so it er for individuals and small busi- can sell insurance on the new individual exchange.David Thomas,Finesses to purchase health care. “It is a huge lift for everybody, a delis’ executive vice president and tremendous undertaking for the chief operating officer, said the instate,” said Patricia Boozang, a man- surer put together an in-house team aging director at Manatt Health So- almost entirely devoted to getting lutions and counsel to the Coalition ready for the exchange,and since last summer has hired of New York State “dozens and dozens of Public Health Plans, a THE ROAD TO See INSURERS on Page 14 group of insurers that, HEALTH REFORM: Individuals required to buy insurance don’t understand the online marketplace selling it BY TESSA BERENSON The success of a new marketplace to buy health insurance—a key feature of Obamacare—will hinge on whether New Yorkers know it even exists. So far, not many do. As a result, selling the New York Health Benefit Exchange as a new way to comparison-shop for health insurance online will take extraordinary showmanship on the part of state health officials. The stakes are high: Success means insuring 1 million people through the exchange. But if only the sickest New Yorkers sign up, premiums will be too high for insurers to compete for healthy individuals who can buy coverage elsewhere, and the exchange will fail financially. But how to explain what the exchange is, and why New Yorkers should flock there? Most don’t un- INSURERS derstand the new marketplace or how it could benefit them. Many are not native English speakers, or have never had health insurance. “This is an enormous challenge in educating New Yorkers about how to gain access to insurance,” said Brian Griffin, president and chief executive of Empire Blue Cross Blue Shield, which will be among a number of companies selling health plans on the exchange (the list of state-approved insurers will be announced later this month). “For this to be successful, there needs to be public awareness.” ᮢ Health exchange aims to raise visibility, win 1 million enrollees To spread the word, New York state will spend $40 million on a broad advertising campaign over two years, run by DBB Worldwide Communications Group Inc. Keyed to the open enrollment period that begins Oct. 1, the spending spree will likely benefit all major New York media outlets: television, radio, websites, print and social networks. “We expect to announce and launch our name and a new brand this summer,” said Danielle Holahan, deputy director of the exchange. “All of our materials will convey that brand message.” See HEALTH EXCHANGE on Page 14 July 15, 2013 | Crain’s New York Business | 13

Table of Contents for the Digital Edition of Crains New York - July 15, 2013

Crains New York - July 15, 2013
IN THE BOROUGHS
IN THE MARKETS
SMALL BUSINESS
THE INSIDER
BUSINESS PEOPLE
OPINION
STEVE HINDY
GREG DAVID
REAL ESTATE DEALS
REPORT: HEALTH CARE
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - July 15, 2013