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WellPoint CEO: Insurer readies for technology wave

By WTOP Staff

TOM MURPHY
AP Business Writer

NEW YORK (AP) — WellPoint CEO Joseph Swedish says that when people ask what a doctor’s appointment will be like in the future, they assume that patients will physically have to visit an office.

They’re wrong, the insurance executive told The Associated Press during an interview at its New York headquarters.

“I would argue that will no longer be necessary in the not too distant future,” Swedish said after pulling out a smartphone to show how it can be used to help remotely diagnose problems like ear infections.

Swedish says adapting to technology is a top priority for him as he leads the nation’s second largest health insurer. The U.S. health care overhaul also is a big focus for WellPoint Inc., which is one of the biggest players in the overhaul’s public insurance exchanges. The largely online exchanges debuted last fall and helped roughly 8 million people find coverage.

Swedish has gotten a good reception from Wall Street since taking the top job at WellPoint last year after a long career running large hospital networks. The Blue Cross Blue Shield insurer’s stock has climbed about 76 percent since WellPoint named him CEO — more than twice the growth of the Standard & Poor’s 500 index over the same period.

During the AP interview, Swedish talked about a variety of topics, including how WellPoint is adapting its coverage to keep up with rapidly changing technology and about getting customers prepared for health care decisions they may not be ready to make.

Below are four takeaways from the interview:

RIDING TECHNOLOGY WAVES

WellPoint is adapting to technology by doing things like covering visits to workplace health kiosks, where a company’s employees can speak live with a doctor and get diagnosed without leaving the office. It’s also testing a program that allows a mom to attach an otoscope to her smartphone and let a doctor remotely peer inside her child’s ears. That doctor can then electronically file a prescription, and the mom doesn’t have to miss work for the doctor’s appointment.

These advances can make care access easier, and they cater to younger generations that have grown up with smartphones.

“We really have to pivot and adapt to the demands of the consumer,” Swedish said.

DATA MINING

Marketers have used so-called big data for years to figure out where consumers spend their money. Swedish calls the 581 million medical claims that WellPoint processes every year an “incredible data mine” that can offer valuable insights. Data mining can help WellPoint determine whether patients are filling prescriptions and if they need reminders about follow-up care.

Insurers see what some may call a form of cyber nagging as ways to improve care and cut costs in the long run. That happens when the diabetic who is prodded to keep up with his care doesn’t develop heart disease and wind up in the emergency room with a heart attack.

A TOUGH TRANSITION

The days of people simply using whatever health plan their employer offered are starting to fade. They now face choices, so they have to figure out which plan offers the best doctors for their needs or which coverage has manageable out-of-pocket costs.

Insurance also isn’t covering as much of the bill as it used to, which exposes patients more to health care costs. That means they have to figure out how to shop around for both the best deal and good quality.

Swedish said consumers aren’t yet ready for this industry-wide shift toward health care shopping, and it will be a difficult transition.

“We now have a responsibility to give people information that they can understand,” he said.

THE OVERHAUL PART II

Technology glitches and crashes marred last year’s debut of the health care overhaul’s public insurance exchanges. The federal government labored feverishly to improve the exchanges, but Swedish still expects some problems when a new enrollment period starts this fall for insurance that begins in 2015. Millions will seek coverage and those who signed up last year also will have to re-enroll.

“My concern is (the exchanges) may not be as fluid and flexible and accommodating as is necessary,” he said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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