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TMCNet: The Agency Inside Harte-Hanks Announces Findings of Health Care Reform Readiness Survey Among Marketing Organizations

[March 23, 2012]

The Agency Inside Harte-Hanks Announces Findings of Health Care Reform Readiness Survey Among Marketing Organizations

(Marketwire Via Acquire Media NewsEdge) YARDLEY, PA -- (MARKET WIRE) -- 03/23/12 -- The Agency Inside® Harte-Hanks (NYSE: HHS), a multichannel relationship marketing agency, announced today the release of a new qualitative report showing health care organizations are seeking to create competitive advantages in reaction to the reforms taking effect in 2014 under the Affordable Care Act, but seven in ten report lack of strategy, leadership or funding. The report titled "U.S. Health Care Reform Study: Marketplace Readiness" is based on a 2011 survey of mid- and senior-level executives inside health care insurance organizations.

The survey was conducted via email in August-September 2011 and garnered 20 responses representing not-for-profit Blue Cross Blue Shield organizations with plans in 29 states, with additional participation from regional and national independent firms.

"While 15 percent of respondents believe the current law will be repealed or significantly pared down, half of respondents believe the Affordable Care Act will stand as written," said Jeannine Falcone, managing director, The Agency Inside Harte-Hanks, and corporate officer, vice president, Harte-Hanks. "Among respondents, 85 percent aspire to gain a marketing advantage, but troubling the picture is that only one in four felt fully mobilized to capture the opportunity. This needs to be rectified well ahead of 2014 if aspirations are to be met." Among survey results, the report included these findings: As a result of the Affordable Care Act, four of five respondents believe small group business will decline, while nine in ten feel subsidized individual membership plans will increase; Organizations are highly confident that medical home health care models will reduce cost of care, but wellness programs broadly will not (65 percent rate high or next-to-high impact for home models, while 25 percent feel the same about wellness programs); Half of plan providers responding to the survey state they will turn to consulting firms for help with preparation, but will rely on internal resources for increased enrollment and customer service activity; A full 85 percent plan to compete for marketing advantage vigorously, with direct marketing the tactic of choice -- however, half of respondents report having three or fewer top executives with direct-to-consumer experience pointing to potential recruitment.

"Uncertainty over the final form of health care may linger until the 2012 Presidential Election outcome, and possibly longer, forcing health plans to outline contingencies," said Scott Overholt, vice president and group account director. "However, there are imperatives now to ready service capacity, direct marketing expertise and multicultural capabilities, among other areas, and organizations need to start pilot testing these efforts now if they plan to gain the competitive advantage they seek." A Webinar reporting full findings of the report is posted here: http://www.harte-hanks.com/Registration/Health_Care_Reform A Webinar discussing what health care executives need to know about retail marketing to succeed in this new environment is scheduled for Tuesday, April 17 at 2pm EDT/11am PT. Register at www.harte-hanks.com/registration/healthexec.

[Editor's Note: Individual charts and graphs from this study are available for editorial use, with credit given to "Source: U.S. Health Care Reform Study: Marketplace Readiness, The Agency Inside Harte-Hanks, Winter 2012." Contact Morayea Pindziak to arrange for prompt delivery.] About Harte-HanksHarte-Hanks, Inc.® (NYSE: HHS) is a worldwide, direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to local, regional, national and international consumer and business-to-business marketers. Visit the Harte-Hanks Website at http://www.harte-hanks.com or call (800) 456-9748.

The Agency Inside Harte-Hanks is a full-service, multichannel relationship marketing agency specializing in direct and digital communications. With award-winning strategy, creative and implementation services, The Agency Inside helps marketers within targeted industries understand, identify, and engage prospects and customers in their channel of choice. Recognized and respected as a market leader for many decades, it is our mission to deploy world-class, insight-driven, multichannel relationship marketing programs that address each client's acquisition, cross-sell, retention and loyalty needs.

This document may contain trademarks that are owned or licensed by Harte-Hanks, Inc. and its subsidiaries, including, without limitation, Harte-Hanks®, The Agency Inside, and other names and marks. All other brand names, product names, or trademarks belong to their respective holders.

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