Friday, February 13, 2004
Hello from Bryan Riley -- I just received the following email from www.galen.org:
Galen Institute
Health Policy Matters
February 13, 2004
Consumer Choice Care
The Galen Institute briefing on Wednesday dazzled the audience with "Reports from the Field" about Consumer Choice Health Care. The hearing room in the Senate Dirksen building was packed, with standing room only.
Six companies presented evidence that dispelled myths about these plans. The facts:
Enrollees are more likely to be older and sicker, not young and healthy.
Despite this, consumer directed plans do lower costs.
Utilization of preventive services increases by as much as 60%.
Patients choose generic drugs up to 50% more often.
Satisfaction and re-enrollment rates are high, up to 98%.
The briefing was organized and moderated by Greg Scandlen, Galen's most able director of our Center for Consumer Driven Health Care, with an introduction by Sen. Larry Craig, chairman of the Senate Special Committee on Aging. "Passage of Health Savings Accounts may be one of the most important accomplishments of this Congress," Craig said.
There also was early good news about HSAs: Scott Krienke of Assurant Health (formerly Fortis Health) says that 30% of those who have signed up for HSA accounts since January 1 were previously uninsured.
The briefing, however, largely focused on experience so far with the more established Health Reimbursement Arrangements, authorized by regulatory action in 2002, that provide employers with an opportunity to allow employees to participate in cost-saving by making wiser use of health services.
Companies represented at the briefing were Aetna, Definity Health, Destiny Health, Assurant Health, Lumenos, and Destiny.
Some highlights:
Aetna conducted a detailed study of enrollees in its consumer choice HealthFund and matched it to a similar population. The results: Eligible charges for the HealthFund group rose by only 1.5% while the control group rose 15.7%.
Participants in the HealthFund programs had an average deposit of $940, with 69% of the money being spent on health services. And 51% of enrollees had money left to rollover in their account at the end of the year.
People pay more attention to their health and use information resources, like nurse hotlines and on-line services, more often.
Populations in Destiny's program were equally mixed between blue and white collar workers, with "lower-income workers more likely to see the value of this savings opportunity than higher-income employees," according to Stuart Slutzky of Destiny.
Bottom line: Accusations that those selecting consumer-directed health plans are "healthy and wealthy" just doesn't hold up against the data. Workers who are older and more likely to need health services see greater value in the control they get over their health choices. And they aren't skimping on preventive services but are making wiser choices on discretionary expenses, are reducing emergency room and outpatient visits, and are using generics more often.
Many participants wrote to us praising the conference. "By far, this was the most informative and productive consumer choice healthcare seminar I have attended over the last two years," one said.
Our website provides a link to all of the speaker materials that are available electronically. Click here for the agenda, contact information on companies, and speaker materials. We plan to produce a paper with more details, so stay tuned. Consumer choice in health care is the future.
Grace-Marie Turner
Galen Institute
Health Policy Matters
February 13, 2004
Consumer Choice Care
The Galen Institute briefing on Wednesday dazzled the audience with "Reports from the Field" about Consumer Choice Health Care. The hearing room in the Senate Dirksen building was packed, with standing room only.
Six companies presented evidence that dispelled myths about these plans. The facts:
Enrollees are more likely to be older and sicker, not young and healthy.
Despite this, consumer directed plans do lower costs.
Utilization of preventive services increases by as much as 60%.
Patients choose generic drugs up to 50% more often.
Satisfaction and re-enrollment rates are high, up to 98%.
The briefing was organized and moderated by Greg Scandlen, Galen's most able director of our Center for Consumer Driven Health Care, with an introduction by Sen. Larry Craig, chairman of the Senate Special Committee on Aging. "Passage of Health Savings Accounts may be one of the most important accomplishments of this Congress," Craig said.
There also was early good news about HSAs: Scott Krienke of Assurant Health (formerly Fortis Health) says that 30% of those who have signed up for HSA accounts since January 1 were previously uninsured.
The briefing, however, largely focused on experience so far with the more established Health Reimbursement Arrangements, authorized by regulatory action in 2002, that provide employers with an opportunity to allow employees to participate in cost-saving by making wiser use of health services.
Companies represented at the briefing were Aetna, Definity Health, Destiny Health, Assurant Health, Lumenos, and Destiny.
Some highlights:
Aetna conducted a detailed study of enrollees in its consumer choice HealthFund and matched it to a similar population. The results: Eligible charges for the HealthFund group rose by only 1.5% while the control group rose 15.7%.
Participants in the HealthFund programs had an average deposit of $940, with 69% of the money being spent on health services. And 51% of enrollees had money left to rollover in their account at the end of the year.
People pay more attention to their health and use information resources, like nurse hotlines and on-line services, more often.
Populations in Destiny's program were equally mixed between blue and white collar workers, with "lower-income workers more likely to see the value of this savings opportunity than higher-income employees," according to Stuart Slutzky of Destiny.
Bottom line: Accusations that those selecting consumer-directed health plans are "healthy and wealthy" just doesn't hold up against the data. Workers who are older and more likely to need health services see greater value in the control they get over their health choices. And they aren't skimping on preventive services but are making wiser choices on discretionary expenses, are reducing emergency room and outpatient visits, and are using generics more often.
Many participants wrote to us praising the conference. "By far, this was the most informative and productive consumer choice healthcare seminar I have attended over the last two years," one said.
Our website provides a link to all of the speaker materials that are available electronically. Click here for the agenda, contact information on companies, and speaker materials. We plan to produce a paper with more details, so stay tuned. Consumer choice in health care is the future.
Grace-Marie Turner
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