In a The Health Care Blog posting dated 9/26/2010, Joe Flower, a noted healthcare systems expert, looked at three programs that have different methods and viewpoints to see how changing the traditional patient/provider/payer roles and responsibilities can impact results. He found while each program had a different starting point, by influencing patient behavior all three had positive impacts on both patient wellness and cost reduction.
Employer Driven Programs
Because of its’ size, Boeing corporation chooses to self-fund their employee healthcare. As an experiment, the company, and Regent BC/BS who runs the plan, asked employees if they wanted to enroll in a special program. Those who said no were the “control” group; those who said yes were “test” group. The test group was overseen by multi specialty clinician groups that evaluated health risks and set improvement goals. The goals were supported by health improvement plans, coaching, classes, and new meds, anything that would change lifestyle and support compliance. The outcome? From the article…
After 30 months, this “medical home” team model and intensive focus showed results: The experimental group not only showed marked improvement in health metrics, but even counting the cost of all the extra work and attention, its medical costs were 20 percent lower than those of the control group. Twenty percent savings on your “frequent fliers”—that’s a big number.
A similar pilot program was run through the organization HealthMapsRX. HealthMapsRx has a roster of pharmacists that businesses can utilize to be health coaches for their employees, helping patients manage chronic diseases. HealthMapsRX was recently involved in the 10 city diabetes challenge sponsored by Glaxo, Smith, Kline and the American Pharmacists Association. During the program, 30 employers in 10 cities waived co-payments for diabetes medications and supplies if participants met regularly with HealthMapsRx coaches, who helped them track their A1C, blood pressure, and cholesterol, and who also taught patients to manage their disease through exercise, nutrition and other lifestyle changes. Pharmacists communicated with patients physicians after every visit and referred patients to other health care providers for additional care or education as needed. Data from the program showed average total health care costs were reduced annually by $1,079 per patient compared to projected costs if the DTCC had not been implemented.
Insurance Driven Programs
There has been a lot of discussion regarding the impact on Health Savings Plans and Health Reimbursement Arrangements on healthcare costs. CIGNA has a Choice Fund plan that allows consumers to utilize HSA’s and HRA’s. Now one would think that because consumers have “skin in the game” with this type of coverage, they would consume less healthcare. However that is not the case. From the article:
Every year end for several years now, CIGNA has released the results of participation in its Choice Fund consumer-directed health plan (CDHP). In January of this year, for instance, CIGNA reported that employees enrolled in the CIGNA Choice Fund, compared with those enrolled in their more traditional plans, incurred 14 percent lower medical costs. People with specific chronic conditions did even better—15 percent lower for diabetes patients, 21 percent lower for people with joint and back pain and 27 percent lower for people with high blood pressure.
And this is key: The employees did not save money by skipping medical care. People on both types of plans were equally compliant with treatment regimens. The difference in cost seems to spring from better management of the chronic conditions and more careful use of preference-sensitive services.
The business press regularly reports the results as proof that CDHPs lower health care costs and improve employees’ health—but that’s getting the story wrong. The CDHP alone is not what works. What works is using the employees’ “skin in the game” as the basis for a comprehensive program of incentives and massive clinical and information support aimed at behavior change, education, preventive measures and control of chronic syndromes. The programs vary from market to market, even from one employer to another, and often involve contracts with specific health care providers to deal with specific types of problems. Employers pay a small amount extra per year for the extra support, expecting that they will be able to recoup the extra payment in lower costs over time.
So three different programs, three different starting points, similar outcomes. By making patients active participants instead of passive consumers, costs go down, outcomes go up. With 70-75 % of healthcare costs to be driven by chronic conditions, the model has to change for the US to get greater value for its’ healthcare dollar. With a bit of creativity, and patient nudges, it can.
To see the post click here.