The importance of health insurances as a target group for ...€¦ · Integrated CRM-systems ... New customer segmentations. Staff for controlling contract management Down-sizing

The importance of health insurances as a target group for the pharmaceutical industry

Consequences for market research

Market Access Strategy“Which target group is most important to talk to when launching a new Rx drug?“ Answers in %

0

9

36

55

0 10 20 30 40 50 60

Stakeholder

Health Care Professionals

Patients

Politics

Survey with 83 Market Access Specialists, Kienbaum Executive Consultants, Spring 2010

Health Insurances in Germany

167 Social Health Insurances (May 2010) withlong-time history and single client base consolidation and competition (236 SHI in 2007)

All sizes: 8,5 Mio members (Barmer GEK) down

to 900 members (B&V BKK)

48 Private Health Insurances (~ 10% market share)

Financing of Public Health Insurances Until 2008:

members

fee

expenditures

hospitals

doctors

drugs

Since 2009:

distribution key

fee

Health Fund

Financing of Public Health Insurances

expenditure925 € / year

1.973 € / year

distribution keyHealth Fund

Example:

Peter Müller, Policemen, 51 years

Diabetes Type II with insulin therapy

2.798 € / year 2.898 € / year

- 100 € / year

Financing of Public Health Insurances

expenditure925 € / year

1.973 € / year

distribution keyHealth Fund

Example:

Peter Müller, Policemen, 51 years

Diabetes Type II with Insulin Therapy

2.798 € / year 2.898 € / year

Reduce costs!(improve therapy)

...a lot of activities were done:

Free choice ofinsurance

Rebate contracts

2007

1996

2003

First pilot projects between SHI and Pharmaceutical Industry

Rebate contractsmandatory 2009

Obligation to close selective

contracts

First Generic Tender Business

New contract models (risk share contracts,added value contracts...)

Effects of Rebate Contracts: Generic Market

Source: IMS Health Flashlight Contract Management 2009, SHI Prescription Data April 2010

Tender of 14insurances (AOK) within 64 molecuels (99 Mio units)

Accepted tenders Turnover MAT 04/10 Growth in %

Ratiopharm 0 562 Mio -12%Winthrop (Sanofi-Aventis) 51 107 Mio +107%Axcount Pharma 5 13 Mio +496%Biomo Pharma 0 25 Mio -28%

Changes in Pharmaceutical Companies due to new Trend“How do you respond to increasing influence of health insurances?“IMS survey at pharmaceutical companies, respond in %

26,7

33,3

46,7

56,7

66,7

73,3

0 10 20 30 40 50 60 70 80

Implement Contract- and Account Management

Integrated CRM-systems

Up-sizing special sales force covering SHI

New customer segmentations

Staff for controlling contract management

Down-sizing primary care sales force

Health Insurances as a Target Group for the Pharmaceutical Industry

Consequences for market research:

Analyzing new data sources to provide

information to all involved persons

Ad hoc market research with this new

target group

Source: IMS Contract Monitor® National, April 2010

Share of Products with Rebate Contracts (Total Market):

SHI-market sales Share of patent-protected products within rebate contract segment

14% 18%

2008 2009with Rebate-Contract

18 Bln € 19 Bln €

GK

V-sh

are

in %

(tur

nove

r)

13%

Originals without generic competition = 435 mill. €

3,4 Bln €

Impact of Rebate Contracts: Example AOK Baden-Würtemberg

Source: Insight Health Kostenträger Analyzer

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Losartan Germany

Impact of Rebate Contracts: Example AOK Baden-Würtemberg

Source: Insight Health Kostenträger Analyzer

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M.S. Units

Losartan AOK B-W

Losartan Germany

Start of rebate contract

Health Insurances as a Target Group for the Pharmaceutical Industry

Consequences for market research:

Analyzing new data sources to provide

information to all involved persons

Ad hoc market research with this new

target group

The right Position for each Insurance?

Grund-versorgung

Preis- und Produkt-differenzierung

Discountinsurance

Premium insurance

Popularinsurance

ContractA

ContractB

ContractC

Addedvalue

contracts

ContractD

Contracts E

ContractF

Contract G

Genericrebate

contracts

The Agencies Point of View Health insurances might be a new research target group,

but they are well known as clients

In 1996, when free choice of health insurance was established in Germany, at least the big insurances started marketing activities

Need for market research!

Market Research Projects- conducted for health insurance clients -

Segmentation Analyses

Product Concept (Acceptance) Tests

Pricing Analyses

Advertising Evaluation

Evaluation of Disease Management Programs

Mystery „Shopping“

Analyses of Customer Loyalty

Tests of Website Usability and Acceptance

Relationship between Health Insurances and the Pharmaceutical Industry

Topics of market research conducted by pharmaceutical industry Strategy (indications, patient target groups, disease

management programs, integrated care, rebate contracts, …)

Co-operation with pharmaceutical companies (industry image, relationship management, operational issues)

Additional information like insurance image, public awareness etc.

Many stakeholders –different interests

On insurance side• insurances as public institutions often have very complex organizational structures difficult to identify the right contact person(s)

On clients‘ side• sometimes difficult to find a concept that satisfies all involved departments

Market Research with Health Insurances -Classical B2B-Research

Interviews: Discussions withexperts

• highly qualified interviewers with good knowledge of health care system needed

• high level of expertise needed to draw conclusions and give recommendations that add a real benefit!

- Challenges in terms of content -

B2B-Research with Health Insurances

- Operational issues -

Target group difficult to reach

• difficult to get contact details

• time pressure - difficult to schedule appointments

• willingness to take part is limited

• methodological flexibility needed, e.g. mixed mode research designs

Incentives• information as an incentive

• charity incentivizing

Case Study: Insurance Strategy

1

DPC GKV-Markt

April 2010

Dirk Weller | [email protected] | +49 221 42061 426 Markus Schöne | [email protected] | +49 30 3087447 10

German Health Insurance Market: Trends in Strategy, Communication and ServicesA qualitative study with decision makers

Case Study: „From a Money Changer to a Service Provider“In consequence of the "Wettbewerbsstärkungsgesetz" (law to strengthen competition) the health insurances had to face new challenges:

An equal contribution rate of 14 percent replaced the price competition between the insurances

New financing system (Health Fund, Morbi-RSA)

Re-positioning of health insurances, their internal andexternal business relationships and processes

• Review and adjustment of strategies

• Study objective: Collection and analysis ofopinions and new strategic approaches

Case Study: Research Design

Sample: 36 Health Insurances4 x AOK2 x Ersatzkassen3 x IKK25 x BKK (subgroups)2 x LKK

Participants:15 Board members and deputies 8 Heads of Corporate

Development/Strategy9 Heads of Marketing4 Heads of Customer Service

The involved insurances cover in total approx. 33.7 mio insurants.

Telephone interviews of 45 minutes (average)

Incentives: Access to study results

Due to the equal price rate, health insurances have severe problems differentiating themselves from their competitors

Thus, there is a need to review and re-define their strategic positioning

Two strategic approaches emerge: Growth Strategy: Using scale effects and market power in

contracting to optimize costs. Merger as a strategic option.

Niche Strategy: Focusing on certain target groups, by choosing specific topics and regional engagement

Case Study - Conclusion: Strategy and Market Behaviour

Additional Information on Health Insurances To gain a comprehensive picture of health insurances,

further information can be useful for the industry:

Positioning of insurances (image)

Assessment of insurance and its strategy by the insurants

Perception of insurance as a brand

Due to the fact that big health insurances act like brand manufacturers, plus they are perceived as brands, conventional market research methods can be applied

Measuring Brand Perception – Standard Tools can be applied

-30

-20

-10

0

10

20

30

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50

60

70

80

90

100

03.0

3.08

17.0

3.08

31.0

3.08

14.0

4.08

28.0

4.08

12.0

5.08

26.0

5.08

09.0

6.08

23.0

6.08

07.0

7.08

21.0

7.08

04.0

8.08

18.0

8.08

01.0

9.08

15.0

9.08

29.0

9.08

13.1

0.08

27.1

0.08

10.1

1.08

24.1

1.08

08.1

2.08

22.1

2.08

05.0

1.09

19.0

1.09

02.0

2.09

16.0

2.09

02.0

3.09

16.0

3.09

30.0

3.09

13.0

4.09

27.0

4.09

11.0

5.09

25.0

5.09

08.0

6.09

22.0

6.09

06.0

7.09

20.0

7.09

03.0

8.09

17.0

8.09

31.0

8.09

14.0

9.09

28.0

9.09

12.1

0.09

26.1

0.09

09.1

1.09

23.1

1.09

Sco

re

AOK Techniker Krankenkasse

BrandIndex® – measured daily

BrandEngine®: Deutsche BKK

All respondants

Insurants of the BKKRespondants who know the BKK

28

0 20 40 60 80 100 Top

AOK

BIGdirekt

gesund

BIGdirekt

gesund

SBK

GEK

25

41

35

60

59

Sympathy

Purchase Willingness

Conviction

Satisfaction

Conciseness

Index*

Deutsche BKKBKK Gesundheit

KKH-Allianz

AOK

bestworstMarkt

Brand Strength Deutsche BKK

General Findings from an Agency’s Point of View Success factors for market research with health

insurances are the same, that apply to other B2B-studies

Identification and Recruitment

Qualification of interviewers

Incentivizing

Health insurances act like brand manufacturers – hence we can apply the same tools

Key Messages and Outlook:

Health Insurances are becoming increasingly important as a target group for pharmaceutical companies

The company researchers need to take this development into account for providing their internal customers with the relevant information and consulting

Due to the complexity of the subjects and the specific features of the target group, there are special requirements of the reseach companies and the methods to be used

ANY QUESTIONS?