Health Plan SWOT Analysis

When considering a new health plan, a management tool that can be quite useful is a SWOT analysis. SWOT--or Strengths, Weaknesses, Opportunities and Threats--allows you to group key features of each plan into individual "buckets" that will allow you to make an intelligent and informed choice.

Strengths

• List all the strengths of each plan you are considering individually. Examples of strengths include having a large number of available doctors that are covered under the plan, a small deductible and lower out-of-pocket costs for preventative care.

Weaknesses

• List all the weaknesses of each plan. Examples of weaknesses include high out-of-pocket costs, few available doctors and facilities that are covered and a long list of uncovered items.

Opportunities

• List all opportunities for each item. Examples of opportunities include being able to fund your plan with pre-tax dollars, being able to add additional coverage in the event of a major life-changing illness such as cancer and being able to lower your premiums over time based on utilization.

Threats

• List all the threats associated with the plans. Examples of threats include the possibility of a plan being canceled for low enrollment, or the possibility of premiums going up due to new changes in legislation.

Putting It All Together

• Review all four categories for each listed plan, and make the best choice. It may be helpful to plot the results on a chart, so you can visually analyze the information.