Health plans, like many other industries, are motivated to diversify their offerings for a multitude of reasons.

However, in recent times, this motivation has become more pressing than ever before. In this essay, we will explore four reasons why health plans are motivated to diversify now more than ever.

Firstly, the COVID-19 pandemic has highlighted the need for health plans to diversify their offerings. The pandemic has brought about a dramatic shift in how healthcare is delivered, with virtual healthcare becoming the new norm. Health plans that have already diversified and invested in telemedicine and other digital healthcare services have been able to better serve their members during the pandemic. Diversifying in this way has not only allowed health plans to maintain continuity of care during lockdowns and other restrictions, but it has also increased accessibility and convenience for members. Health plans that have not yet diversified in this way have been left scrambling to catch up, and many have been left behind.

Secondly, the changing demographics of the population have created a need for health plans to diversify. The baby boomer generation is aging, and with age comes a greater need for healthcare services. This has resulted in increased demand for specialized care, such as long-term care and home health services. Health plans that can offer these specialized services are better positioned to attract and retain members. Furthermore, the younger generation, particularly millennials, have different healthcare needs and expectations than previous generations. They are more likely to seek out alternative therapies, such as acupuncture and chiropractic, and are more focused on wellness and preventive care. Health plans that can offer a diverse range of services that cater to these needs and expectations are more likely to attract and retain younger members.

Thirdly, increased competition within the healthcare industry is driving health plans to diversify. Consolidation within the industry has resulted in fewer players, but those that remain are larger and more powerful. This has created a need for health plans to differentiate themselves from their competitors. By diversifying their offerings, health plans can set themselves apart from the competition and attract members who are looking for more comprehensive and personalized healthcare options. For example, health plans that offer integrated care, such as combining medical and dental coverage, are better positioned to attract and retain members who value convenience and simplicity.

Lastly, regulatory changes within the healthcare industry are driving health plans to diversify. The Affordable Care Act (ACA) has had a significant impact on the healthcare industry, and health plans have had to adapt to the new regulations. The ACA has placed a greater emphasis on preventive care and wellness, and health plans that can offer these services are better positioned to meet the needs of their members. Furthermore, the ACA has placed limits on the amount of profits that health plans can make, which has put pressure on them to find new revenue streams. Diversifying their offerings can help health plans to generate new revenue streams and maintain profitability.