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Health care industry

Consumer-Driven Health Plans Deliver Quality, Affordable Care at Substantially Lower Costs

Strategic Insights

— 2 min read

A recent multi-year study by CIGNA revealed that medical costs for individuals in consumer-driven health plans (CDHPs) decreased by 26% over four years, while levels of care for preventive medicine, chronic disease management, and evidence-based treatments were higher than their counterparts in traditional PPO and HMO health plans. The study, which analyzed the health care claims experience of 655,000 CIGNA customers, found that CDHPs result in an immediate and sustained improvement in health care quality and lower costs.

Key Takeaways:

  • CDHP medical costs are 14% less than traditional plans in the first year, with cumulative cost savings rising to 19% in the second year, 23% in the third year, and 26% in the fourth year.
  • CIGNA Choice Fund customers received recommended care at compliance rates similar or better than those covered by traditional CIGNA health plans, with key indicators such as use of preventive care, evidence-based care, and disease management program participation being measurably better.
  • Individuals with chronic conditions, such as hypertension, joint disease, and diabetes, incurred medical cost trends that were substantially less for CIGNA Choice Fund customers compared to traditional CIGNA health plans.
  • If the share of Americans enrolled in CDHPs rose from 18% to 50%, and the results of the CIGNA study were applied, the U.S. could achieve $350 billion in savings over 10 years.
  • Companies like Land O'Lakes, Inc. and CIGNA have seen significant cost savings and improved health outcomes by implementing CDHPs, with Land O'Lakes saving over $10 million in health plan costs since 2007.
  • Individuals enrolled in CIGNA Choice Fund plans are more engaged and more likely to comply with and complete their plan disease management programs, with disease management program follow-through and completion rates being 22% higher than traditional CIGNA managed care plans.

Statistics:

  • 655,000 CIGNA customers were analyzed in the study.
  • CDHP medical costs decreased by 14% in the first year, 19% in the second year, 23% in the third year, and 26% in the fourth year.
  • CIGNA Choice Fund customers had a higher statistical compliance with 11% of evidence-based measures in the first year, and 16% higher for Choice Fund customers enrolled for multiple years.
  • Preventive care visits for first-year CIGNA Choice Fund customers were an average of 16% greater compared to traditional plans.
  • Pharmacy costs for new CIGNA Choice Fund customers with pharmacy benefits were cut by more than half compared to those enrolled in traditional plans.

Sources:

  • CIGNA Corporation's Fourth Annual CIGNA Choice Fund Experience Study
  • CIGNA Corporation's press release (no date)
  • Land O'Lakes, Inc. press release (no date)
  • Diabetes Week, "CIGNA's Choice Fund Study: Consumer-Driven Health Plans Deliver Quality, Affordable Care at Substantially Lower Costs" (2010)
  • NewsRx.com, "CIGNA Corporation's Choice Fund Study: CDHPs Deliver Affordable, Accessible Care at Substantially Lower Costs" (2010)

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