More news from the technology front: Aetna acquires bswift. Last year, it was Towers Watson buying Liazon, now Aetna and bswift, and next year it will be someone else. Under the radar a little bit was the Oct. 16 Hodges-Mace announcement of their SmartBen acquisition. It doesn’t carry the cache of Aetna or Towers Watson, but it was still a market move. Is this just beginning of the dance where everyone needs to choose a partner? And what does this mean for the benefits market and the benefits broker?
For some, this acquisition may be strange. Aetna buys a company that provides technology used by their competitors. The bswift enrollment platform handles enrollment for many employers that don’t have Aetna insurance. Towers Watson bought a company distributed by their competitors, other brokers. What most people aren’t realizing is that the world has changed. In many industries companies that compete in one market segment may be partners in another. If you view this acquisition in the old world where competitors don’t work together you may see it one way, but in a new world it may look a little different.
My message to brokers on this is to start thinking differently. Those who don’t will get left behind. The rules of the game are changing and you don’t get to make all the rules.
I have been fortunate to have worked in some capacity with Mark Bertolini, CEO of Aetna, and Rich Gallun, CEO of bswift. Both are outside-the-box thinkers. Aetna has invested billions in technology preparing for what they view as a consumer-centric health care model. They want to reinvent the patient experience. To quote Bertolini, “We’re going to begin to change the health care industry by giving people tools they can put in the palm of their hand.”
Here is another quote from Bertolini that would make brokers pause. When asked about the future of health care, Bertolini responded: “There wouldn’t be plan designs. You wouldn’t need them. What you would do is invest in all those things that are necessary to keep people healthy.” You can see a full overview of the Aetna model by viewing this presentation from their 2013 Investor Conference.
More than a business move
Some may think this is an acquisition of a benefits enrollment platform by Aetna. But I see this as another step by Aetna to execute on a plan to compete effectively in a new health care world. A world where consumers are in more control. Where provider systems are engaged in a patients wellness and not just proving treatment after the fact. A world where health information and communication is moved via Web and mobile.
In this case, bswift made a strategic move into the consumer centric world through their private exchange technology with individual rating and decision support tools. Now it has paid off. This made them attractive to Aetna. Congratulations to bswift for a job well done.
So what does this mean for benefits brokers? A few weeks ago I wrote an article titled “Does Apple’s HealthKit signal the end of employer-based insurance?” Some may not relate Apple’s investment to the Aetna acquisition of bswift; however, I think they are related.
Apple is clearly one of the top consumer technology vendors in the market. Aetna is driving consumer centric health care. They are pieces of the same puzzle. It is a puzzle benefits brokers need to pay attention to because the market is changing around them. A carrier buying an enrollment vendor says one thing, Aetna’s and Apple’s investments mean something different. In a not-so-obvious way the health care world is changing in a way that most brokers are not recognizing. Consumer-centric; mobile; doctors as wellness facilitators; employers out of the risk business? Maybe. So get ready.