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Mary Meeker's Internet Trends 2018: Consumers paying and expecting more from healthcare experience

The biggest surge in healthcare costs is the rise in deductibles, with 22 percent of employees paying a $2,000 deductible versus 7 percent in 2009.
By Susan Morse , Executive Editor
Consumers paying more and expecting more

Mary Meeker's highly-anticipated annual trends report gives numbers to the industry's concern of rising healthcare costs.

It also shows what experts have long touted. As prices rise, consumers want to know how they're spending their money, and they want their experience to rival what they get on Amazon.

More than three-quarters are also willing to share their personal information to get a clear benefit.

Data can be an important driver of customer satisfaction, the report said. Data-driven personalization drives customer satisfaction.

Amazon leads in the customer satisfaction category, followed by Google, (Alphabet), Facebook and Netflix.

When searching for just about anything online, consumers want to know what's near them. Seventy-nine percent are willing to share personal data for a clear personal benefit, according to information in the report from Deloitte.

They're using the internet more than ever, with a greater number going mobile than on desktops or other devices.

Healthcare will continue to rise as a percentage of household income, according to "Internet Trends 2018" by Mary Meeker, of Kleiner Perkins Caufield Byers.

Healthcare as a percent of household spending is 7 percent today, versus 5 percent in 1972. Compare this to food spending, which today is 12 percent of household spending versus 15 percent of 28 years ago. 

Also not surprising are figures showing consumers are picking up a greater portion of their healthcare costs. Today, consumers are paying 18 percent, versus 14 percent in 1999 for their portion of insurance coverage.

The biggest surge is the rise in deductibles. The number of employees who have a $2,000 deductible is 22 percent, versus 7 percent in 2009, the report said.

With this, the trends report says Americans are more in debt than ever, and are saving less. Debt to annual income is 22 percent versus 15 percent 50 years ago.

Household spending is rising in the areas of shelter, pensions, insurance and healthcare, and falling in categories of food, entertainment and apparel.

Confirming what healthcare experts have long said, when consumers start to spend more, they pay more attention to value and prices.

Because they're paying more, and also because they're now used to the digital experience they can get from Amazon and elsewhere, consumers expect more from their healthcare experience, according to the report.

They want a modern retail experience, digital engagement, on-demand access including pharmacy prescriptions, specific solutions, transparent pricing and a simple way to pay.

Healthcare providers and insurers have been working on giving consumers all of the above. This spring, Centers for Medicare and Medicaid Services Administrator Seema Verma promoted interoperability for consumers in new rules for EHR access and price transparency.

The report shows market peaks and declines, and concludes that when markets reach mainstream, new growth is harder to find, as evidenced by zero percent new smartphone unit shipment growth in 2017.

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com