Inflation is half as high among consumer-driven health plans as it is among HMO and PPO plans, according to a recent study of more than 430,000 CIGNA members.
The two-year study suggests that medical costs were much lower for CDHP members (as compared with HMO and PPO participants), while use of preventive care increased for CDHP members. Out-of-pocket costs and use of best practices remained constant. CDHP users continued to receive recommended care at similar compliance rates as traditional plan members, and their medication compliance improved, the study indicates.
Medical costs were 12% lower for CDHP members than for HMO and PPO participants in the first year and 5% lower in the second year. Health care inflation was 4.4% for second-year CDHP members, compared to 9.8% for traditional plan participants. Out-of-pocket costs for first-year CDHP members were similar to that of traditional plan participants, and that does not take into account the difference in premiums, the study finds.
"CIGNA's research adds to the mounting evidence that consumer-driven health plans offer an affordable, cost-effective way to provide benefits that can save money, increase consumer engagement and not compromise the quality of care," says Helen Darling, president of the National Business Group on Health.
CIGNA HealthCare President David Cordani says that the hallmark of "responsible consumer-driven plan design" is lowering patient costs without cost-shifting or reducing quality of care. He considers the four key elements of CDHP plan design to be:
- Benefit levels that are comparable to traditional plans.
- 100% coverage of preventive health services.
- Helping members make informed health choices.
- Proactive health coaching.
Bill Reindl, senior vice president of consumer segments for Cigna HealthCare, remarks, "If designed properly, these plans do show a material impact in the first year. A lot of organizations have been able to quote and generate that – but they can't show on a year-over-year basis. You've got to create something of value to get members to say why this makes sense. You've got to build the savings back into the benefit."
