Segment 1

Segment 1 – Undisciplined, Unhealthy, Uninformed & Price-Sensitive

I’m moderately educated, but I’m not at all that knowledgeable about financial or health issues. I lack financial discipline, often missing my credit card payments, and I have no long-term financial plan. I do not feel financially secure, and since I struggle to make payments, I really don’t have extra capital to invest in the market. Since I don’t have a high income, I haven’t had the need to learn about tax deferral, and so I don’t really understand the advantages of an HSA. I’m not very happy with my current health insurance, and I’ve heard that an HDHP + HSA could save me money. However, with my lack of financial knowledge and discipline, I worry that an HDHP will increase my health expenses. I’m risk averse and fairly anxious about health care in general, so even though I’m unhappy with my current coverage I’m not looking for a new type of plan.

Demographics # Financial #
Age 45.1 % preparing own taxes 47%
HH Income (Index): 76 % with retirement plan 67%
% Male 30% % pays cc balance ea. mo. 28%
% Married 53% % with any credit card debt 67%
% College Graduate 47% % owns stocks/mutual funds 18%
With Kids 35% % in company w 500+ workers 46%
Health Ins. Characteristics # Health Behavior #
% HMO 30% % in very good to excellent health 49%
% PPO 47% % very/extremely satisfied with plan 25%
% with HSA 12% % actively managing weight 32%
Single coverage 49% % used uncovered health care 40%
Av Deductible $1,988 % smoke cigarettes 16%
Total Health Spending $1,512 % exercising weekly 49%
Financial Confidence & Knowledge
  • Ignores opportunities to lower income taxes, completely unfamiliar with tax deferral
  • Strongly dislikes finances, not sophisticated consumer of financial products/services
  • It’s not worth their time to move funds to chase higher returns
Health Confidence & Knowledge
  • Has some trouble making health care decisions
  • Not sophisticated health consumer – some do research online, but most understand little about health care.
  • Rarely gets second opinion or exerts effort to see specialists
Financial Discipline & Control
  • Has difficulty sticking to a budget, frequently misses monthly credit card payments
  • Doesn’t spend much time managing money and has no long-term financial plan
  • Half have never used a financial website
  • Sometimes prepares own tax return
Health Discipline & Control
  • Struggles to make health insurance decisions, often renews current health plan out of convenience
  • Less likely to eat healthy, believes more responsibility would improve health
  • Concerned with future health care costs
Perceived Financial Security
  • Not secure overall, over 60% live paycheck to paycheck
  • Feels worse off than friends and acquaintances
  • Many secure in job but still worried about finances
Perceived Health Security
  • Most anxious about health security: 74% worried about affording health care
  • 43% worry more about health care expenses than peers
  • Lowest confidence in future choice, coverage, costs
HDHP Interest & Knowledge
  • 63% at least somewhat interested, only 27% somewhat familiar
  • 84% unsure how to select HDHP, 79% would need an advisor
  • 67% expect health costs to increase with HDHP, 63% unprepared to manage HSA
Risk Management
  • Not risk tolerant with personal finance; not generally willing to play stock market or take more risk for more return
  • Half would rather pay higher premium for better benefits, but only 23% willing to take higher deductible/lower premiums
Price/Premium Sensitivity
  • Highly price-sensitive: only 36% don’t worry about health costs since copay is so low
  • Not price shopper: only 30% compare prices of medical services/drugs
  • 57% would cut dosage to cut costs; 54% think many diagnostics not worthwhile
Plan Satisfaction
  • Most dissatisfied; 27% report being unsatisfied, only 25% satisfied
  • OOP Expense has greatest impact on satisfaction
  • If could lower one aspect would lower: premium cost (36%) or Deductible (36%)
Decision Making
  • Advice seeking: only 21% handle investments w/o advisor, 52% wld use benefits mgr
  • Few have preferred financial supplier (22%)
  • Somewhat attached to provider: 60% won’t switch plan if requires switching primary provider
Engagement Preference
  • After Dr. and Health website, most preferred sources: Friends / relatives (30%), Telemedicine (22%)
  • Uses slightly fewer info sources than other segments
  • Under half would want to receive alerts from financial institutions

© Copyright 2019-2020 ExperienceLab Inc

Segment 1 in brief
The least financially knowledgeable and disciplined segment, Segment 1 also tends to be less physically healthy. They often experience anxiety about their health and personal finance and need basic information & simple advice about how to use their health and personal finance products.

Anxiety indicators from our survey and Segment 1:
74% of segment ones are anxious they won’t be able to afford the quality of healthcare services they need.
76% of segment ones don’t know how to forecast future medical expenses
70% of segment ones get stressed out by aspects of their health plan that they can’t control.

Read our blog about anxiety:
Segment 1s are a prime target for anxiety communications. See our thinking in “Tools to reduce health and finance anxiety”.
Click here to read it now.

Contact Personatm for a list of your Segment 1s
You can be communicating with just your segment 1s in a week or two.
Click here to contact us with questions or call us at 978-290-5785.

FREE Offer! Can attitudinal research help you?
With a sample of your benefits communications, we’ll report how Personatm can increase their engagement!

Click Contact Us to get started!

Navigation

Get In Touch

Mail: info@experiencelab.com
Phone: (978) 290-5785

Office

ExperienceLab, Inc.
12 St Louis Ave
Gloucester, MA 09130