Alegeus Healthcare

Consumerism Index
Measuring the degree of engagement and ‘consumerism’
exhibited during healthcare spending and saving decisions
 Executive overview 1

Table of Methodology 2

Contents 2016 Alegeus Healthcare Spending Index 3

2016 Alegeus Healthcare Saving Index 7

Conclusion 10

About Alegeus 11

2
 1 Consumers are increasingly responsible
for the cost of their healthcare – as
Executive evidenced by rising deductibles, growing
out-of-pocket costs, and accelerating
Overview adoption of consumer directed health
plans and accounts.

However, it’s evident that consumers may not be fully

prepared to manage these new financial responsibilities.
This index seeks to measure the industry’s progress in
empowering consumers to take greater ownership of
their healthcare finances.

Cost/value orientation Savings focus/discipline

exhibited during healthcare to plan for healthcare cost
“purchases” responsibilities

1
 2 A survey of more than 1,000 US healthcare
consumers evaluated two specific
Methodology aspects of healthcare consumerism.

For each category of consumerism – spending

and saving – survey responses were tabulated into
a single rating score on a 0-100 point scale. The
bigger the number, the greater the degree of
consumerism exhibited.

Research Online survey, data Margin of error for

commissioned by collected April 2016 this sample size is
Alegeus, performed +/-3.1% at a 95%
by a third-party confidence level
research firm

2
 3 Consumers were asked to assess their
attitudes and behavior for a wide set of
2016 Consumer spending decisions – including both
healthcare and non-healthcare purchases.
Healthcare
Spending Index The same set of questions were asked for each type
of purchase decision to allow easy comparison. For
example, consumers were asked:

• Are they focused on reducing costs?

• Are they focused on getting better value for the
dollars they must spend?
• Does cost influence their decision-making for
whether to spend, or which option to choose?
• Do they understand costs before they purchase?
• Can they forecast how much they will need to spend
this year and into the future?
• What is the degree of diligence performed
before spending?
• Do they compare options for cost, quality and value?
3
 Based on responses to these questions,
a single rating score was developed for
2016 Consumer each decision type – based on a scale of
0-100. The bigger the number, the greater
Healthcare the degree of cost/value focus and
Spending Index consumerism exhibited.

2016 Consumer Healthcare Spending Index

Healthcare Spending
54.4

Buying a TV
78.9

Choosing a Cell Phone Provider

76.2

Booking Travel
73.2

Buying a Car
77.6

0 25 50 75 100

Healthcare consumers are more engaged and thoughtful about buying a TV or

booking travel than they are about making decisions concerning their
own healthcare.
4
 Prior year consumer responses offer a
year-over-year benchmark for healthcare
Year-Over-Year decisions and shows that, while growth is
slow, engagement levels are rising.
Comparison
Reveals Modest Year-over-year comparison
Improvement 2016 Healthcare Spending Index
54.4

2015 Healthcare Spending Index

48.3

2014 Healthcare Spending Index

40.4

0 25 50 75 100

As consumers feel the effects of increasing financial responsibility for

healthcare they are becoming more engaged.

5
 76% of US consumers are focused on
getting the best value for their
Increasing Focus healthcare dollars.

on Cost and Value Previous year results found consumers resistant to

engage and become accountable for their healthcare.
However, the reality is, as consumers become
increasingly responsible for the cost of healthcare they
do become more engaged and want to deliver the
best outcomes for their family.

40% 42% 69%

YOY YOY YOY

59% 54% 54%

Research procedure Research physician Seek second opinions

effectiveness and and facility quality regarding diagnosis
success rates ratings and treatment options

6
 4 Consumers were asked to consider their
attitudes and behaviors regarding saving
2016 Consumer for various costs such as retirement,
their kid’s college education, and an
Healthcare Saving emergency fund.
Index The same set of questions were asked for each type
of savings to allow easy comparison. For example,
consumers were asked:

• Do they know how much they will need to save?

• Do they have a specific savings goal?
• Do they have existing savings toward this goal?
• Have they budgeted an amount to save each month?
• Do they have dedicated accounts and investments?
• Are they confident that they are saving at the
appropriate rate?

7
 Based on responses to these questions,
a single rating score was developed for
2016 Consumer each decision type – based on a scale
of 0-100. The bigger the number, the
Healthcare Saving greater the degree of savings discipline
Index and consumerism exhibited.

2016 Consumer Healthcare Saving Index

Healthcare savings
21.9

Retirement savings
41.5

“Emergency fund” savings

41.6

College savings
29.8

0 25 50 75 100

Disciplined saving for short and long term healthcare costs represent a
paradigm shift for most consumers, and the majority of consumers are
currently under-funding their healthcare savings.

8
 Many US consumers continue to live
paycheck-to-paycheck, with only 50%
Consumer currently making contributions toward
retirement each month – more than
Healthcare Saving twice the number that are saving for
Habits healthcare.

Today, consumers simply don’t view their healthcare

costs from a long-term perspective.

66% 23% 69%

Don’t know how Are saving Are not confident

much they need to aggressively for they have maximized
save for healthcare healthcare their tax benefit for
costs this year healthcare savings

9
 5 The 2016 Consumerism Index

Conclusion

Demonstrates some Clearly signals the

progress in the way need for significant
consumers are managing education, tools and
healthcare spending and support as consumers
saving, but still a long assume more financial
way to go before true responsibility for their
consumerism is realized. healthcare costs.

For more information, visit

alegeus.com/consumerism

10
About Alegeus
Alegeus is the market leader in consumer directed healthcare, offering
the industry’s most powerful engagement platform to help consumers
maximize savings and optimize spending for their healthcare. With more
than 300 clients, Alegeus:

Engages more Supports more Processes Powers more than

than 29 million than 215,000 more than $8.9 40% of the benefit
consumers employer groups billion consumer accounts in the
healthcare market
transactions

Corporate Headquarters
1601 Trapelo Road
South Building, Second Floor 800-369-9794
Waltham, MA 02451