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It just makes sense: shifting decisions to consumers in health care reduces costs. A CIGNA study found that 42,000 first-time participants in its consumer-driven health plans (CDHP) not only decreased costs 8 percent but lived healthier. The savings covered total medical costs excluding prescription drug expenses for enrollees in a CIGNA Choice Fund plan. Among those in a traditional HMO or PPO plan, the costs increased about 4 percent. The cost savings came from reductions in both inpatient and outpatient facility costs, which declined approximately 5 percent and 12 percent over the prior period. Inpatient and outpatient facility costs for CIGNA Choice Fund enrollees also were lower than costs for members of the control group enrolled in a traditional plan. While overall costs decreased for these services, the actual number of admissions increased compared to the prior period. When it came to prescriptions, consumer-driven care produced more preventive use of medications and, when medications were required, an increased use of more cost-effective alternatives such as generic or over-the-counter drugs. CIGNA Choice Fund members with prescription drug coverage through CIGNA HealthCare significantly increased their usage of medications for:
They also reduced prescription drug purchases for medications such as for migraines (-4 percent) and anti-ulcer drugs (-7 percent) when over-the-counter alternatives were available. In fact, prescription drug costs for CIGNA Choice Fund members were 5 percent less than costs for the control group of members enrolled in a traditional plan. Both HR and benefits managers believe consumer-driven care will increase employee awareness of health care costs (84 percent). Half of the benefit managers also expect the plans to change employee purchasing behavior. Finally, more than a quarter of all managers (27 percent) expect to see improvements in employee health and wellness. The Consumer-Driven Health Plan concept is a dynamic, fast-growing innovation still in its infancy. While early adopters have proven the benefits, most managers still know few specifics about the plans. But one thing already is clear: communication is a key ingredient to success. About two-thirds believe employees will need intensive communications and support to get started and follow-through after plans are launched. For information on how The Benefit Advocates can help you create the communications and support to make your consumer-directed health care plan a success, call us today at 1-800-344-5677 or 721-2029 in Winston-Salem. Source: Plan Sponsor
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Consumer-Driven
Health Plans Save Costs
