BCBS is using mobile to more deeply engage their customers on very personal concerns on health. Listen to Patrick describe how they’re using these personal mobile devices to create very personal conversations. This deeper level of engagement will help all brands understand the potential mobile has to connect to your consumers on an individual level.

1. Innovation
for a New Reality
Patrick Feeney
Senior Manager, Electronic Commerce
@pdf1974, @bcbsil
Event hashtag #MobiU2011

2. Innovation in Health Care
Key Themes Emerging Now, Soon … and Beyond
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3. The Need for Innovation
Health Care Increasing Customer
Reform Expectations
Rising Costs and Shift to Consumer Focused
Aging Populations Business Models
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4. Four Key Themes
The Personalized
The Rise of
Health Care
Prevention
Experience
The The
“Unwiring” Consumerism
of Health Care of Health Care
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5. Health Information Anytime, Anywhere
Health care is no longer confined to the hospital or doctor‟s office.
At an increasing rate, health professionals and those they serve are seeking and
receiving health information anytime, anywhere.
Now Soon …and Beyond
Simple remote Cross-stakeholder Advanced genome
patient monitoring health information mapping
exchange
Integrated wellness Smart-chip
Tele-Doctor /
programs Tele-Medicine
sensor networks
Accountable care 2D Code Health Advanced
organizations Care Applications Bioinformatics
Online personal
Digital health Health care retail
health records
coaching exchanges
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6. Innovation at HCSC
How we are pushing the boundaries
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7. Health Care Service Corporation (HCSC)
Life, Disability
and Annuities
Dental
13 Million+ Members || 16,000+ Employees || $15B+ 2010 Revenue
Other Subsidiaries and Joint Ventures
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8. A Fundamental Shift
“business as usual”… “new reality”
Existing members Potential new members
13M
Different characteristics
Traditional products New products
B2B focus
Direct B2C market Prevention/wellnes
s
Traditional channels New channels
Tsunami of Regulation
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9. Case Study:
Blue Access Mobile Program
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10. Significant Opportunity
The competitive … required the timely
landscape creation of a robust
facing HCSC… mobile program
Business Context Our Solution
• Rising costs for care/disease • Develop mobile solutions to
management and member create a simpler, more
servicing affordable, and more
• Shifting member expectations to accessible experience
engage differently with their • Develop a targeted multi-waved
health plan approach focusing first on
• Increasing competitor interest in members
mobile • Build industry-leading capabilities
• Rising ubiquity of mobile usage to become more in line with user
across member base expectations
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11. Significant Opportunity
Blue Access Mobile aligns with HCSC’s …and enables HCSC to deliver a targeted
corporate strategy… and personalized mobile experience
Simpler
Mobile provides members with convenient
access to information and transactions
Members interact with mobile devices all
day, every day
2013
More Affordable
Mobile can help bend the cost curve by:
2012
Reducing member servicing cost
2011
(calls to call center, member
mailings)
Improving outreach and compliance
with disease management programs
…allowing for lower premiums
More Accessible
Approximately 90% of HCSC members Measurable Benefits
have a mobile phone Decreasing Administrative and Medical Costs
Mobile phones allow for real time interaction Generating revenue growth opportunities
with members at the point of decision Improving quality of care and member satisfaction
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12. “Mobile” is a combination of technologies
Mobile phone sits at the intersection Devices still evolving
Communication Communication Medium
Medium • Mobile is no longer simply voice, it is
voice and text
In the first half of 2010, it was estimated that
Tablet? 72% of adults use their cell phones as a
means to send or receive text messages
• The trend is moving towards even less
voice communication
Teens spend about a half hour a day talking
on a cell phone, but 1½ hours a day sending
or receiving texts. 3
Application Platform
• Google, Apple, Palm and Blackberry
provide a platform for mobile application
development
“People aren’t making their decisions about
phones based on what apps to buy. But it is
becoming something of a consideration.”2
Tracking Device
• The mobile devices is becoming both
contextually and personally aware of you
Application Tracking In February 2009, Google launched
Platform Device Latitude enabling people to track friends,
family, employees with, or without, GPS
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13. Targeted Audience
1 2 3
Focus on the Identify Target Provide targeted
Member first Member Segments segments with
personalized
opportunities
• HCSC‟s member population • HCSC‟s member population • mOpportunities were
is inherently mobile, making was segmented across three identified based on the
them the first population to different levers: targeted segments‟ wants
target for a mobile strategy • Member servicing costs and needs
• Care management
• Members account for the • Market segments • HCSC will ultimately provide
majority of both HCSC‟s cost a personalized mobile
and revenue • Member segments with largest experience that decreases
mHealth ROI are targeted cost and increases revenue,
quality of care and member
satisfaction
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14. Evolution of Mobile
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15. Targeted Audience
Cost Revenue Quality Satisfaction
Member
Servicing Costs
(claims and EOB
inquiries, etc.)
  
Use of Mobile Health Status
(Power, Casual,
Non)
(asthma, COPD,
diabetes, etc.)   
Sales Segment
(individual, large group,
etc.)
 
Segmenting Members
Prioritizing & Targeting Segments
HCSC‟s membership will be segmented through two different • Member segments will be prioritized
lenses: and targeted based on a number of
• Members will first be segmented by their mobile various factors
usage from power users to non users
• Once segments are prioritized, those
• Members will then be further segmented by HCSC
with the largest potential mobile ROI
business unit view of member (disease state, market
will be targeted
segment, admin cost)
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16. Targeted Audience
Primary Targets Secondary Targets Non-Target
The Mobile The Whiz The Late The The Lost
Managed Bangs Bloomers Hesitants Causes
11% 21% 24% 20% 24%
“All of my
“It would be nice “They can tell me information is all “Health insurance “I only have this
if you could send where the nearest over the place. I fraud is difficult one phone and
us a text saying Starbucks is, they would love to have to reset and I I‟m not looking to
the last time you should be able to it in one place and would want to upgrade… I still
got this test was tell me where the just show the know that it's want my carrier
Aug. 2006; you nearest hospital doctor „here look secure” sending me mail”
should schedule a is” at this app‟” -26-35 year old , -- 55+ year old,
new one now” - 26-35 year old , 46-55 year old IL OK
– 31 year old , OK IL diabetic , NM
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17. Mobile Approach
Mobile Web Mobile Mobile
Messaging Applications
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18. Multi Wave Approach
Mobile Product Strategy User Experience
All users experience standard, basic
Wave 1
Foundational
•Basic mobile capabilities and low data capabilities mobile capabilities focused on mWeb
•Offers a „one size fits all‟ opportunity to members and targets and 1-way SMS as fundamental
all members technology is built out
Intermediate Capabilities including dynamic
Wave 2
•Intelligent communications delivered via basic mobile communication are added, enabling
capabilities
more effective exchanges between
•Mostly „one size fits all‟ opportunities with specific upgrades to
member and payer
accommodate for data integration
Advanced User preferences are leveraged and
Wave 3
•Leveraging sophisticated mobile technologies to provide a incorporated into the communication
seamless member experience complete with channel experience to ensure a streamlined
optimization experience for member and payer
Technologies supporting multiple
Wave 4
Integrated channels and communication platforms
•Building out the infrastructure to enable all necessary systems
are integrated to consolidate
to interface with mobile applications
communications
The user has a holistic healthcare
Customized
Wave 5
•Provide a personalized mobile health experience tailored to a experience with all tools, channels,
user based on their health data preferences, and health data integrated
and personalized for a user experience
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19. HCSC Blue Access® Mobile
HCSC’s Multi-phased …is expected to produce a
Blue Access Mobile significantly positive ROI
Strategy… beginning with the first “wave”
Wave 1 ROI (2010 -> 2016)
Cost Implementation: $4.3m
Maintenance: $8.3m
Benefit Admin cost: $25.0m
(savings) Medical cost: $26.6m
Net $39m
• Earlier “waves” focus on building foundational • Benefits from administrative costs will be seen
capability and addressing “low hanging fruit” first, followed by medical cost savings
• Later “waves” include more advanced • By leveraging the investment from Wave 1,
capabilities designed to provide customers subsequent waves are able to generate
with a comprehensive mobile experience similar or greater ROI
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20. Blue Access Mobile: Public Site
Mobile Public Site
Sample Features
Mobile Quote Provider Finder
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21. Blue Access Mobile: Member Site
Mobile Member Site Sample Features
Coverage
Claims Status
ID Card Information
Maternity Care Diabetes
Information Articles
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22. Blue Access Mobile: One-Way & Two-Way SMS Text
Sample Features
Diabetes Care Claims Status ID Card
Management Tips
BCBSIL
Text:
Eating protein with every IDCARD
meal or snack helps slow
the rise and fall of blood ID #: ##, Medical Group #: ##,
Coverage Effective
sugar and reduce hunger Date:MM/DD/YYYY
cravings.
A claim has been
paid. Please log
onto the Blue
Access website for
details.
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23. Advanced Mobile Programs
Sample Features
Blue Cross Blue Shield WellDoc Diabetes Care
Provider Finder Management Pilot Program
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24. Blue Access Mobile Utilization
Mobile Web - National Statistics • Illinois Provider Finder Mobile App
• Mobile Public site visitors downloads (YTD)
• 300%+ increase in public • Android: 5,747 downloads
mobile website hits from April • iPhone: 11,665 downloads
2010 to 2011
• Blue Access for Members (BAM)
Mobile website stats (YTD)
• 20,895 BAM logins via mobile
• 8,186 BAM mobile claims
page views
• Shop for Insurance - Individual Retail
Quotes (YTD)
• 5,601 quotes generated
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25. Questions
and Answers
#MobiU2011 - @pdf1974 - @bcbsil