Segment 7 - The Persona Blog by ExperienceLab

Segment 7 – Insecure Bargain-Hunters

I am moderately educated, and I have a fairly low salary. I don’t understand finances or tax savings, but my income is low enough it may not be worthwhile anyway. I am not very financially disciplined, and often miss payments, although this may also reflect general financial insecurity. I would like the tax savings of an HSA, but, even if an advisor were to help me choose the right plan, I’m worried that I’d end up spending more with an HDHP. I am not in great health, and I have some unhealthy habits. My current plan has too many out-of-pocket expenses, and I think that’s only going to get worse as time goes on. I rely on my physician for advice, but I’m not so attached that I wouldn’t switch plans if I could save some money. I’m not satisfied with my current plan, but I need to be convinced, probably from an expert/advisor type, that HDHP will lower my expenses,

Demographics	#	Financial	#
Age	45.2	% preparing own taxes	72%
HH Income (Index)	85	% with retirement plan	79%
% Male	36%	% pays cc balance ea. mo.	26%
% Married	61%	% with any credit card debt	75%
% College Graduate	54%	% owns stocks/mutual funds	17%
With Kids	40%	% in company w 500+ workers	56%

Health Ins. Characteristics	#	Health Behavior	#
% HMO	22%	% in very good to excellent health	55%
% PPO	56%	% very/extremely satisfied with plan	35%
% with HSA	28%	% actively managing weight	38%
Single coverage	43%	% used uncovered health care	37%
Av Deductible	$2,117	% smoke cigarettes	14%
Total Health Spending	$1,593	% exercising weekly	55%

Financial Confidence & Knowledge	Not very attentive to income tax lowering opportunities, unfamiliar with tax deferral Strongly dislikes finances, not sophisticated consumer of financial products/services Not worth their time to move funds around to get higher return
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	Majority has problem sticking to a budget, frequently misses monthly credit card payments Rarely use financial websites, no long-term plan Does not prepare own taxes
Health Discipline & Control	Struggles to make health insurance decisions, often renews current health plan out of convenience Less likely to eat healthy, less likely to immediately see a doctor for any health concern Only about 1/3 think about and save for future medical expenses.
Perceived Financial Security	Not secure overall, over 60% live paycheck to paycheck Most worried about job security and finances Feels worse off than friends/acquaintances
Perceived Health Security	Very insecure: 60% worried about affording health care, expect OOP expenses to increase About 30% worried about losing insurance due to chronic illness, stay in job for insurance Few are confidence in health coverage over next 10 years
HDHP Interest & Knowledge	57% somewhat interested in HDHP/HSA and 44% very familiar 70% expect health care spending to be higher with HDHP 62% don’t want to have to think about cost of each doctor visit
Risk Management	Not risk tolerant; about half not willing to play stock market or take more risk for more return Almost half (45%) would prefer less benefits and higher pay Only 26% would accept lower higher deductible for lower premium
Price/Premium Sensitivity	Very price-sensitive: 54% cut dosage to cut costs 49% think diagnostics not worth cost, 71% delay purchases to save money Moderate shopper: 33% compare prices, 83% wld skip checkups if had to pay full cost
Plan Satisfaction	Not satisfied; 21% report being unsatisfied, only 35% satisfied OOP Expense has greatest impact on satisfaction If could lower one aspect would lower: deductible (39%) or premium (35%)
Decision Making	Independent w advice: 36% handle investments w/o advisor, 35% wld use benefits mgr Few have preferred financial supplier (29%) Not as attached to provider: 50% won’t switch plan if requires switching primary provider
Engagement Preference	After Dr. and Health website, most preferred sources: Health plan portal (27%), Friends/relatives (31%) Most likely NOT to want to receive alerts from financial institutions (36%), though about half still do (48%)

Segment 7 in brief:
Similar to Segment 1, Segment 7 has little knowledge of personal finance. However, they are somewhat more knowledgeable about health finance, and use this knowledge to get the most value for their limited dollars.

Segment 7 research insights:
>15% have a long term financial plan (as opposed to 88% of Segment 2s)
>47% say they would reduce their stress if they learned more about planning their finances.
>59% are anxious they won’t be able to afford the quality of healthcare services they need.
>55% spend a significant amount of time worrying about their finances.
>33% compare prices of their options before seeing a doctor or filling a prescription.

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