Questions (Case study 2) 1. What are the main drivers of protability for a health insurer? How do you see industry protability changing over the coming 5 to 10 years? 2. Do you agree with Paul Markovich's view that non-prot insurers are best positioned to drive change in the health care industry? Why or why not? 3. Consider integrated provider/insurance systems such as Kaiser, traditional \"disconnected\" systems in which insurance and care are provided by different entities, and ACOS such as the one built by Blue Shield in combination with Dignity Health and Hill Physicians Group in Sacramento. What do you consider the advantages and disadvantages of each system from the perspective of patients, physicians, technology innovators (i.e., drug companies, diagnostics companies), and the overall health care system? 4. What strategy would you recommend Blue Shield pursue for the individual exchange market? Would you recommend Blue Shield offer an exchange product and, if so, how aggressive should they be on pricing? What do you believe will be drivers for individual decisions on which insurance plan to choose? 5. What are the drivers of industry consolidation in the health care industry? Would you recommend that Blue Shield look for additional acquisitions? If so, what type of companies should they target and why? Should Blue Shield be open to be acquired? Why and why not