When Dave Helwig took over as CEO of Blue Cross of California in 2001, it was running soundly. But that wasn’t enough. The organization has laid out a goal to transform healthcare and become the most valued company in its industry by 2010.

The organization has been serving the healthcare needs of Californians since 1937, providing services to more than 6.8 million members. One of the reasons Blue Cross has been able to stay so successful is because of its customer focus. It’s organized into customer segments, with different managers responsible for areas such as individual businesses, small and large groups, and senior businesses. “This structure allows us to understand the customer and deliver the right products and services,” Helwig said.

Looking around
When Helwig took the helm, he took a unique approach compared to many other companies in his industry. “I found that we kept comparing ourselves to other health plans in the state, and we were feeling good about it. But the problem is that our industry doesn’t give good service in general,” he said.

The CEO began to compare his organization to other world-class service providers. Helwig met with executives from Dell and Fidelity, among others, and had several teams visit other companies. “We want to be Disney friendly, Fed-Ex fast, Visa accurate, and Amazon easy.”

For example, in the health insurance industry, a 1% error rate on a claims payment is considered the gold standard. “But if your Visa or Master-Card had one out of every 100 transactions wrong, you wouldn’t be a happy camper,” Helwig said.

Another customer service initiative stemmed from an old letter the organization sent out to the parents of a child who could no longer be covered by their insurance. In the past, the letter referred to the child as an “over-aged dependant.” Today, Blue Cross sends out a personalized letter that addresses the dependant by name. “This falls under our consumer-centric focus,” said the CEO.

Keeping pace
Blue Cross has strong competitors, but it has been able to stand its ground with innovative programs. Blue Cross uses a consumer-centric approach, focusing on how members perceive its service to make for better interaction. “We spend a lot of time working to understand our customers’ needs,” Helwig said.

For instance, the organization came up with a program for young people called Tonik, which it developed based on information gathered from focus groups and questionnaires. “We use the Tonik product and services to go after the uninsured 19- to 29-year-olds. We found that many people in this age group were interested in getting health insurance, but they felt it would be too complicated or expensive, so they would often procrastinate,” said the CEO.

This is where Tonik comes in handy, with plans that are simple and easy to understand. “We put in a communications style they can appreciate,” said Helwig. “We also made it simple so that the application can be finished in about 15 minutes. If we can grab their attention for that amount of time, we can get them enrolled.”

The program has been going well considering it was launched just last year; 70% of the people enrolled are previously uninsured. Sixty-five percent are under the age of 30, and 85% are under the age of 40. “We hit the market we were aiming for. This is our second best seller on the individual market, and I think it’s about 17% of our total sales, with more than 200 applications a day.”

On a grander scale
Blue Cross has the advantage of size, which adds to its reputation. “We have the ability to deliver innovative and diverse products with the best and broadest networks and discounts,” Helwig said.

The organization recently launched a program called BeneFits to tap small businesses that don’t offer insurance to their employees. The program is based on research that found these types of employers don’t know much about how insurance works.

“They don’t know how inexpensive it can be or that it is tax deductible. Many don’t know that they can have employees contribute,” Helwig said. Blue Cross established a few simple plans for these types of businesses. “The application is simplified: it is one page, with English on the front and Spanish on the back.”

The big challenge with the uninsured is reaching out to them, so Blue Cross is launching several programs to communicate the advantages of the product. “Many of these smaller companies’ owners have insurance, and it’s often with COBRA; those premiums can be $400 to $700 a month. With BeneFits, we can set it up so that each employee can contribute as little as $50 a month.”