Last Updated 05 Mar 2020

The Patient Protection and Affordable Care Act

Essay type Research
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1. Determine how this Federal law will affect market-driven and non-market driven decisions. This federal will affect the marketing aspect of the health care industry regardless if they are driven or not. If the companies are driven and market correctly then they will be able to attract people that are willing to pay for the services they provide. This will cause for private health insurance providers to change the way they provide services. The new marketing strategies will show how they are providing better care for those who have pre-existing conditions.

This law will affect how the private health insurance sector markets the different types of services they provide. The companies will have to go back and look at how they are marketing their services to get the clients they want to attract. If they are market driven then they will market things that are more appealing to the clientele they currently serve or want to be serving, this could involve free health screening, more bang for their bucks, and the opportunity to understand all that the company offers to its insured.

Some will be more ambitious to provide new marketing ideas to keep current clients and attract new ones while others might hate change and move slower towards new ideas. This will cause them to either loose current clients and not attract new ones. 2. Describe the circumstances at which you would prepare a strategic plan to include this new law in your marketing decisions, knowing this new law may or may not take effect. I would focus more on the issue of providing current policy holders that currently have pre-existing conditions with better options to health care.

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I would try to incorporate lower premiums or not charge them as much as competing insurance companies do. I would advertise free screening to all my customers and guarantee coverage. I would sit down with each of my potential policy holders and explain to them the ins and outs of what we offer and what would benefit them. I would want them to feel cared about and not just another policy number. They would feel comfortable coming to us with questions or concerns they may have about their policy.

I would provide an around the clock support line just in case they came across a situation where they needed guidance. Also something that would be extremely important would be to have a website where all the needed forms can be accessed and they would also have access to their account information online. My marketing strategy would emphasize on family and hospitality, since that’s what’s most important to people. 3. Discuss how each of the five (5) environmental forces will be affected by the new law, which you believe will be the most affected and why. -Jockeying for position among current competitors.

This is the aggressive competition between current firms or companies, the fact that these insurance companies will spend so much on having the best marketing strategy will cause the return compensation to be low. This is because they spend so much money on marketing and competing with its opponents. -Threat of new entrants. Since the new law applies to everyone that means everyone will most likely have to start from scratch or updater their antics. If it’s easy for new comers to come along and get their program up and running, the competitions between the difference companies will only become fiercer.

Some barriers of entries for the new comers are if existing customers can trust their current companies, or if there are elevated fixed rates or not enough access to resources. -Bargaining power of customers. If the consumers can produce enough force to affect how many boundaries and capacity they can create, then they hold an incredible amount of power. Reasons why the consumers can have so much power is if they buy large amounts of the products being sold, if the company doesn’t have very many clients, or if they have the opportunity to change companies due to products eing so easy to come about. -Threat of substitute products or services. Depending on whether or not the cost of changing up providers is low and more efficient will determine if substituting is necessary. If the insurance companies are marketing the same products and services that one is already using depending on which more is appealing to the purchaser will determine who gets the service. -Bargaining power of suppliers. If these insurance companies can produce enough force to affect how many boundaries and capacity the companies can create, then they hold an incredible amount of power.

Reasons why the companies can have so much power is if there are limited or no alternates, not many companies with products of interest, or they have something of extreme interest to the buyers and they can’t go without it. I think the rivalry between the current firms will be affected the most, because they will be so wrapped up in their marketing strategy and trying to be the best that they won’t really notice how much money they are spending on the project.

Once it starts to show that they are actually losing more money than they are making then it will be too late and another company would have come in and stolen the pie. 4. Describe one (1) new target audience and include the characteristics of their demographic and psychographic profiles. The new target audiences the insurance companies are focused on are lower middle income families instead of higher income families. They base this on income brackets, which neighborhoods theses potential clients live in blue collar workers versus white collar workers.

Some companies only serve them through current employment under business aspects. Another target audience is expecting women; the insurance companies are looking to insure the baby as soon as it’s born. This way they can collect premiums on the infants from the start of their lives, while insurance policies for them are extremely high. They also allow young people to be insured who are likely to die soon due to illnesses in their families and based on current health conditions. This way they can assemble the premiums and not have to pay out so much money in the process.

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The Patient Protection and Affordable Care Act. (2017, May 25). Retrieved from https://phdessay.com/patient-protection-affordable-care-act/

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