Marketing Strategy Flaws: #3 Insurance Equals Low Cost

| September 9, 2010

This is the third part of a five part series which addresses the flaws inherent in an insurance-centric marketing strategy. This post describes how insurance companies ultimately force destinations into becoming a low-cost solution.

U.S. Insurance 101

In the U.S., insurance companies wield tremendous power and use this power to drive prices unrelentingly low.  U.S. insurance carriers do not pay retail. Rather, they pay a few percentage points above the Medicare/Medical discount rates. For example, a surgical heart procedure that retails for $45,000 will be paid out at a discounted rate of $13,000.

This is as simple as it gets: If you want to dance with the U.S. insurance carriers, you have to be prepared to play the price game.  In the U.S. market, Insurance equals Low Cost.

Throw away all your pre-conceptions that the insurance markets are the “golden ticket.”  If you want to be a premium healthcare brand, you will have to go direct to the consumer.

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Category: Marketing/Branding Strategy

About Marc LeShay: I am a strategic consultant helping people find clarity in chaos View author profile.

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