Friday, July 02, 2004
Aetna announces success of consumer-directed plans
[Press Release, "Aetna HealthFund® First-Year Results Validate Positive Impact of Health Care Consumerism," Aetna Inc., 22 June 2004.]
Aetna insurance recently released data on the results of their foray into consumer-directed insurance, and the news is good. Not only did costs drop, but patients actually increased their use of preventative care:
Aetna announced today the results of a research study of first-year members in its Aetna HealthFund Health Reimbursement Arrangement (HRA) plan. The study of 13,500 HealthFund members, analyzing claims and utilization data for the full 12 months of 2003, provides further validation that the consumer-directed plan encourages active engagement in health care decision-making. Among the key findings, employers offering these plans as an option experienced low medical cost increases of 3.7 percent, while a full replacement plan sponsor experienced a medical cost decrease of 11 percent. These savings were driven by lower member utilization of physician and facility services. At the same time, member utilization of some preventive care measures increased by as much as 23 percent, and diabetic members either maintained or increased the frequency with which they received important tests and screenings.
"We’re pleased to see that the full-year findings for our Aetna HealthFund members are consistent with the preliminary results released earlier this year. In short, these early indicators show that the consumer-directed elements of the plan appear to have a positive impact on controlling health care costs, while at the same time enabling members to access the care that they need for both routine and certain chronic health care conditions" [said Aetna President Ronald A. Williams.]
Key study findings show that:
- General adult preventive exams increased by 23 percent, compared to an 8 percent increase for a similar population
- Gynecological exams increased 4 percent for both Aetna HealthFund members and a similar population
- Child preventive exams for three to four year olds increased 4 percent, comparable to a 5 percent increase for a similar population; for five to nine year olds preventive care increased by 8 percent, compared to a 6 percent increase for a similar population
- Aetna HealthFund members with diabetes either maintained or increased the level of care they received on important tests and screenings.
- Employers experienced a 3.7 percent medical cost increase, compared to double-digit increases for a similar population
- For the one full replacement plan sponsor in the study, medical costs decreased by 11 percent
- The low medical cost increases for all members in the study were driven by two major factors: a reduction in certain physician visits, including a 11 percent reduction in primary care office visits, and a modest 3 percent increase in specialist visits; and a reduction in utilization of facility services, including a 3 percent decrease in emergency room visits, a 14 percent decrease in outpatient cases, and a 5 percent decrease in inpatient admissions
- Members experienced a 5.5 percent decrease in pharmacy costs driven by a 13 percent decline in overall prescriptions and a 7 percent increase in overall generic utilization
"As a business facing intense competition and cost pressures, Logan Aluminum chose Aetna HealthFund because we saw its potential to help hold the line on a disturbing cost trend. But we also made this decision for the benefit of our employees," said Howard Leach, head of human resources, Logan Aluminum, Inc. Logan Aluminum is among the 19 plan sponsors included in the 12-month study, and is the only full replacement plan included. "Now, with more than a year’s experience in a consumer-directed plan, I am confident that we made the right call based on the fact that we’ve been able to reverse unsustainable health care cost increases, while at the same time not negatively impacting our employees’ use of preventive services and the care needed for serious medical issues."
[Press Release, "Aetna HealthFund® First-Year Results Validate Positive Impact of Health Care Consumerism," Aetna Inc., 22 June 2004.]
Aetna insurance recently released data on the results of their foray into consumer-directed insurance, and the news is good. Not only did costs drop, but patients actually increased their use of preventative care:
Aetna announced today the results of a research study of first-year members in its Aetna HealthFund Health Reimbursement Arrangement (HRA) plan. The study of 13,500 HealthFund members, analyzing claims and utilization data for the full 12 months of 2003, provides further validation that the consumer-directed plan encourages active engagement in health care decision-making. Among the key findings, employers offering these plans as an option experienced low medical cost increases of 3.7 percent, while a full replacement plan sponsor experienced a medical cost decrease of 11 percent. These savings were driven by lower member utilization of physician and facility services. At the same time, member utilization of some preventive care measures increased by as much as 23 percent, and diabetic members either maintained or increased the frequency with which they received important tests and screenings.
"We’re pleased to see that the full-year findings for our Aetna HealthFund members are consistent with the preliminary results released earlier this year. In short, these early indicators show that the consumer-directed elements of the plan appear to have a positive impact on controlling health care costs, while at the same time enabling members to access the care that they need for both routine and certain chronic health care conditions" [said Aetna President Ronald A. Williams.]
Key study findings show that:
- General adult preventive exams increased by 23 percent, compared to an 8 percent increase for a similar population
- Gynecological exams increased 4 percent for both Aetna HealthFund members and a similar population
- Child preventive exams for three to four year olds increased 4 percent, comparable to a 5 percent increase for a similar population; for five to nine year olds preventive care increased by 8 percent, compared to a 6 percent increase for a similar population
- Aetna HealthFund members with diabetes either maintained or increased the level of care they received on important tests and screenings.
- Employers experienced a 3.7 percent medical cost increase, compared to double-digit increases for a similar population
- For the one full replacement plan sponsor in the study, medical costs decreased by 11 percent
- The low medical cost increases for all members in the study were driven by two major factors: a reduction in certain physician visits, including a 11 percent reduction in primary care office visits, and a modest 3 percent increase in specialist visits; and a reduction in utilization of facility services, including a 3 percent decrease in emergency room visits, a 14 percent decrease in outpatient cases, and a 5 percent decrease in inpatient admissions
- Members experienced a 5.5 percent decrease in pharmacy costs driven by a 13 percent decline in overall prescriptions and a 7 percent increase in overall generic utilization
"As a business facing intense competition and cost pressures, Logan Aluminum chose Aetna HealthFund because we saw its potential to help hold the line on a disturbing cost trend. But we also made this decision for the benefit of our employees," said Howard Leach, head of human resources, Logan Aluminum, Inc. Logan Aluminum is among the 19 plan sponsors included in the 12-month study, and is the only full replacement plan included. "Now, with more than a year’s experience in a consumer-directed plan, I am confident that we made the right call based on the fact that we’ve been able to reverse unsustainable health care cost increases, while at the same time not negatively impacting our employees’ use of preventive services and the care needed for serious medical issues."
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