Health Insurance Daily

CDHPs May Save Money, Maintain Quality Of Care

Consumer-directed health plans result in lower medical costs, maintained or improved levels of chronic and preventive care and increased usage of generic medications and consumer tools, according to a new study from Aetna, which sells consumer-directed health plans.

Aetna President Ronald Williams notes, "The financial results achieved by full replacement plans are particularly significant, equating to a savings of $1 million per 1,000 members over a three-year period while still maintaining quality care." Aetna reviewed four years of data to determine the impact of CDHPs on 1.6 million Aetna members.

Employers that offered Aetna's health reimbursement arrangement experienced an average medical cost trend of 6.7% from 2002 to 2005. Furthermore, patients with chronic conditions in Aetna's HRA and health savings accounts maintained or improved the level of care they received prior to joining the plan. Generic drug utilization for HRA users was 4.5% higher than for PPO members. Meanwhile, Aetna HRA members accessed online tools more than twice as often as members in other plans.

A separate survey from Blue Cross and Blue Shield Association shows the popularity of HSAs is equally distributed across consumers aged 25 to 54, with demand also coming from all education and income levels.

About 46% of HSA users choose HSAs because they consider them less expensive, while 38% of account holders view HSAs as a long-term savings vehicle, and 38% are seeking greater control over their medical expenses, BCBSA indicates.

There's room for improvement in savings rates. Only 57% of HSA-eligible enrollees opened accounts this year, BCBSA reports. However, 52% of Aetna's HSA members rolled over their entire fund last year.

Article provided by Benefitnews, October 5, 2006

posted by Mike @ 8:50 AM