Healthcare Consumerism

Wellpoint 2008 CDHP Data and Trends

WellPoint CDHP Trend & Data Report 2008

SUMMARY  -

A recent study of consumer-directed health plans (CDHPs) by WellPoint, Inc. found good news for both employers and consumers. Employers, the most common source of health benefits in the United States, are faced with increasing cost pressures. However, the employers in WellPoint’s study who switched to a CDHP in 2007 saw a slight decrease in their cost trend while costs for other plan types continued to climb. At the same time, the consumers enrolled in CDHPs had higher utilization of preventive care than consumers enrolled in non-CDHPs. The difference was more pronounced for males than females. WellPoint’s analysis found the male CDHP members had 8.8 percent higher preventive utilization than their counterparts enrolled in other plan types. This is a particularly positive finding as men generally tend to have fewer preventive care visits than women... Download 2008 WellPoint CDHP Study

Industry Trend Studies 2009

1. PwC Trend Report - From one year to the next, healthcare costs for employers and their workers always go up. Yet, for the past five years, there’s been some positive news. The growth rate has been dropping. However, that trend will level off in 2009, according to employers and health plans. This report looks at what to expect in medical cost growth for 2009, key influencers of that growth, and strategies for employers and payers to respond to ever higher healthcare spending.

 Key Findings: The growth in medical cost trends for the private sector is expected to level off in 2009 following five years of deceleration. Costs are expected to grow 9.6% in 2009 compared with 9.9% in 2008. Decelerators of cost growth in 2009: Improved medical management of high-cost patients. Two-thirds of employers say they contract with disease management programs that focus on reducing and eliminating hospitalizations. For example, the number of cardiac procedures has been dropping largely due to improved adherence to medications and more coordinated discharge planning… Download 2008 PwC Healthcare Trends

2. Aon Trend Report for 2009 - Aon Consulting surveyed more than 70 leading health care insurers, representing more than 100 million insured individuals, and found that health care costs are projected to increase by 10.6 percent for HMOs, 10.5 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. These represent the lowest trend rate increases since the study began in 2001, and are slightly lower than one year ago, when HMO cost increases were 10.9 percent, 10.8 percent for POS plans, 11.2 percent for PPOs and 10.7 percent for CDH plans... Download 2008 Aon Healthcare Cost Trends

3. Mercer Trend Report for 2009 - After three years of double-digit growth in the first half of the decade, annual health benefit cost increases slowed in 2005 and have stayed there ever since. Preliminary survey findings released today by Mercer indicated growth is likely to slow a little further in 2009, to 5.7 percent – which would be the lowest increase in years. Mercer’s annual survey found that average health benefit cost per employee rose 6.1 percent in 2007.  Mercer’s complete survey results won’t be released until later in the year, but for the 1,317 employer health plans have responded so far, the total cost to renew their current health plans – if they were to make no changes – nearly 8 percent on average. Small employers (those with 10–499 employees) would see an even higher increase... Download 2008 Mercer Healthcare Cost Trends

4. Watson-Wyatt Trend Report for 2009 - U.S. employers expect health care cost increases to hold steady at 6 percent and more plan to adopt consumer-directed health plans (CDHPs) in 2010 in an effort to control cost increases, according to a forthcoming survey by Watson Wyatt, a leading global consulting firm, and the National Business Group on Health, an association of more than 300 mostly large employers, including 64 of the Fortune 100. The survey of 489 large U.S. employers found that the median rate of health cost increases is expected to remain at 6 percent in 2009, although this is still nearly twice the rate of inflation. The increase is the same rate that employers experienced in both 2007 and 2008. In 2006, health care costs increased by 8 percent.

“Cost increases have stabilized, but the financial crisis is causing many companies to reevaluate their health plan strategies,” said Ted Nussbaum, group and health care practice leader at Watson Wyatt. “While large-scale changes appear unlikely, economic realities are leading companies to adopt strategies that emphasize greater personal health accountability to their workers.”

Just more than half (51 percent) of companies now offer workers a CDHP, up from 47 percent in 2008. Another 8 percent are expected to adopt a CDHP by 2010. CDHPs are helping employers control costs — companies with at least half of their workers enrolled in a CDHP have a two-year cost trend (4.6 percent) that is 25 percent lower than non-CDHP sponsors (6.1 percent)... Download 2009 Health Care Benefit Cost Increases to Remain at 6 Percent in 2009

Oliver Wyman - Carrier Trend Report 2008.2

 

Download 2008 Wyman Oliver Trend Report Final 2008 2  

CIGNA CDHP Cost Trends

13 January 2009

CIGNA Study: Americans with CDHPs Cut Medical Costs Without Cutting Care

Study Shows CDHP Cost Savings Can Help in an Ailing Economy

 BLOOMFIELD, Conn., January 13, 2009 - CIGNA Choice Fund account-based consumer driven health plans (CDHPs) reduced medical cost trend by 13 percent relative to HMO and PPO plans, even as individuals enrolled in CDHPs use more preventive services and comply with their medical treatments, according to a new multi-year study that compares the health care claims experience of nearly 440,000 covered by CIGNA CDHPs and traditional HMOs and PPOs.

“In these tough economic times, it’s critical that we all do what we can to cut medical costs without cutting care,” said CIGNA Chief Medical Officer, Jeffery Kang, M.D. “Critics of consumer driven health plans contend that people will sacrifice their health to save money; when in fact our data show that account-based plans save money even as individuals receive the same or higher levels of care than those in traditional health plans.”

According to Dr. Kang: “In our latest study of medical claims for 440,000 people covered by CIGNA plans, we reviewed claims for 22,000 individuals who have either hypertension or diabetes and found that medical cost trend was substantially less for those with CDHPs, while their treatment regimens were the same or better than those in traditional HMOs and PPOs.”

Key findings of the 2009 CIGNA Choice Fund Experience Study include:

• Chronic Conditions: Medical cost trend was substantially less for CIGNA Choice Fund customers with diabetes (20 percent less) or hypertension (18 percent less) than for individuals with either of those diseases in traditional CIGNA health plans. Notably, these individuals maintained similar treatment regimens regardless of whether they were covered by CDHP or HMO or PPO plans; suggesting that the lower cost trend are likely a result of better chronic disease management, rather than patients foregoing recommended care.
• Pharmacy: In the first year, pharmacy cost trend for those covered by CIGNA Choice Fund plans was 10% lower than traditional plan cost trend, with the use of generic medications being nearly 5% higher among individuals covered by CIGNA CDHPs.
• Overall Medical Trend: In the first year, normalized medical trend for CIGNA Choice Fund plans was -3.3% versus 10.6% for traditional plans. The study also shows lower medical trend for CDHP continues in subsequent years. People with CIGNA Choice Fund continued to receive recommended care at compliance rates that were similar or better than those covered by traditional CIGNA health plans.

“Not only does the data show that consumer driven health plans save money without compromising care; but there is mounting evidence that suggests people in these plans are increasingly engaged and smarter about their health care,” Dr. Kang said “For example those in CIGNA CDHPs have greater access to our personal health advisors; they are more likely to receive preventive services, such as annual check ups, and breast and colon cancer screenings; and are nearly twice as likely to register to use CIGNA's online healthcare quality, cost and health improvement resources.”

Individuals Becoming Smarter About Their Care

Individuals enrolled in CIGNA Choice Fund continued to receive recommended care at the same or higher levels as those enrolled in traditional plans in an evaluation of compliance with more than 300 evidence-based measures of health care quality. Preventive care visits for CIGNA Choice Fund individuals were 8% greater when compared to traditional plans and preventive care visits for renewal year CIGNA Choice Fund were 15% greater when compared to traditional plans.

Pharmacy cost trend for those newly enrolled in CIGNA Choice Funds was 10% lower than those enrolled in traditional plans. When compared to the prior year, usage was higher for new CIGNA Choice Fund individuals and average unit trend cost was lower, for maintenance medications, suggesting that these individuals were compliant with their medications while exercising lower-cost options such as purchasing their medications by mail order and electing to use generic medications.

Connecting Online

Study results suggest that people with CIGNA plans are becoming more engaged in their health care, with increasing numbers of individuals turning to online information and decision support tools offered via myCIGNA.com.

Currently an average 55,000 individuals visit myCIGNA.com each business day in order to get the most out of their health care benefits. Online capabilities include the award-winning CIGNA Care Connections, a personalized online search engine that helps those with CIGNA health plans find the highest quality and cost efficient physicians and hospitals, conduct side-by-side cost comparisons for generic, brand name and available therapeutic alternative medications at more than 57,000 pharmacies nationwide and locate the most cost effective medical facilities, including convenience care clinics.

“CIGNA's mission is to improve people’s health, sense of well being and security; as our latest CDHP study shows, these plans are part of the solution for creating a more affordable, accessible, sustainable and high quality healthcare system,” said Dr. Kang.

CIGNA (NYSE:CI), a global health service company, is dedicated to helping people improve their health, well-being and security. CIGNA Corporation's operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 47 million people throughout the United States and around the world. To learn more about CIGNA, visit www.cigna.com.

*These plans are offered through Connecticut General Life Insurance Company