March 13, 2006

RX for Business

Arguably, our biggest domestic issue is healthcare. We spend more on it than we spend on food. Healthcare insurance costs - which uniquely in this country are principally paid by employers - are skyrocketing and endangering the future of American businesses large and small. And, if you really look at how the healthcare insurance industry works, you can see that the crisis is only going to get worse.

It's a complex issue. We know more about it than we did a decade ago. The rational way to solve it is clearer. But the political barriers to solving it are more daunting than ever before.

Is there a way for those of us in marketing and communications to use our skills to convey the problem and possible solutions and try to contribute to more responsible thought and action on the part of our elected officials?

The answer to the challenge of these painfully rising costs seems to be a universal system of public insurance, such as one finds in several European countries. All the evidence points to this kind of system providing better coverage, coverage to all, and more economically efficient coverage.

For example a study conducted by the Urban Institute found that "per capita spending for an adult Medicaid beneficiary in poor health would rise from $9,615 to $14,785 if the person were insured privately and received services consistent with private utilization levels and private provider payment rates."

One distinct advantage of public health insurance is lower administrative costs. That's because private insurers spend so much trying to identify and screen out high-cost customers. In 2003, for instance, Medicare spent less than 2% of its resources on administration, while private insurance companies spent more than 13%.

The fragmentation and private component of our system is preventing us from controlling these runaway costs. A nationwide public health insurance program would reduce costs, lift this enormous burden off of businesses, and provide coverage to the tens of millions of people who are uncovered today.

Everyone 65 or over is covered by Medicare. But, of those below 65, only 5.3% buy health insurance for themselves. Another 63.1% receive health insurance through their employers. That leaves 31.6% with no health insurance coverage at all.

As costs skyrocket, the number of companies providing health insurance is diminishing. And, among those continuing to provide coverage, many are regularly reducing benefits. More and more Americans are becoming uninsured or underinsured.

We have a crisis. Our citizens are in danger. And our businesses are on the ropes. Elected officials may recognize it, but they won't solve it...at least without some powerful communications from their constituents. Can't we help with those communications?

When You've Run Out of Ideas

Everyone is blasting Mastercard for its lame commercial in which it asks people to come up with a commercial for the seemingly endless "priceless" campaign.

While the idea may have come out of some group grope about how to play into our culture's obsesssion with interactivity ("Hey, here's an idea. Why don't we let the people out there create their own spot for us?!"), it seems to me like interactivity gone awry.

One of the beers did this with an outdoor campaign. They encouraged consumers to submit quotes about why they liked the beer, or even to come up with ad slogans. It was Amateur Night, to be sure. The results were so lame that they were embarrassing.

While consumers most certainly like to have their say, and they like to have things "their way," they don't want to do our work for us. We need to pull our own weight and give them plenty of reasons to be engaged. "Write me a spot," doesn't do it.

Racing for the Women

NASCAR merchandisers are focusing on women (with - for example - a NASCAR crock pot and a Daytona 500 fragrance from Elizabeth Arden), because women represent 40% of the NASCAR fan base.

The purchasing power of women never ceases to be amazing. For instance, women make 77% of the wine buying decisions and 80% of the home improvement buying decisions.