Do consumer directed health plans (CDHPs) really save money? This is the million dollar question. Actually it’s the billions of dollars question since we are talking healthcare. Employers are looking for ways to cut costs and ways to deal with the tax on high cost health plans that are sure to hit come 2014.
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This article goes into the nuts and bolts of how CDHPs save money, but it only briefly touches on the fact that there are huge cost savings when people are responsible for their healthcare under a CDHP. The points in the below two paragraphs are great, but the important fact is that the cost savings when people are healthier and cost conscious are astronomical when you compound the savings year after year.
“If anything, it is the level of engagement among CDHP enrollees that could influence long-term health costs and give hope to employers concerned about improving the health of the workforce. For example, among employer groups where CDHPs are the only health plan option, individuals improved their health risk profile by 12% in the first year, thereby lowering their risk of developing or worsening a chronic condition, such as diabetes or heart disease.”
“In addition, the Cigna study found that those enrolled in a CDHP are twice as likely to complete a health risk assessment and, if they have a chronic illness, are up to 25% more likely to participate in a disease management program than individuals enrolled in a traditional plan. These CDHP consumers were also 59% more likely to seek out Cigna’s cost and procedure information, more likely to choose generic medications and 6% less likely to use the emergency room than their peers enrolled in traditional plans.”
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