Managed Care - March 2009 - (Page 41) Numbers point to CDHP potential onsumer-directed health plans manage to save money without compromising care, according to a large study of Cigna members. The Cigna Choice Fund plan reduced the rate that costs rise by 13 percent compared to the HMO and PPO plans that Cigna sells. The “Cigna Choice Fund Experience Study,” released in January, reviewed the claims history of 440,000 members enrolled in the three types of plans. “The study examined the total cost of claims for both employers and individuals to isolate behavior changes associated with enrollment in consumer-directed plans,” the study summary states. C Medical cost trends 2006 vs. 2007 –3.3% Traditional plan Cigna Choice Fund 10.6% In addition, pharmacy costs for Cigna Choice Fund members were 10 percent lower than for those in the company’s traditional plans. Perhaps because generic usage was 5 percent higher for the CDHP members. Pharmacy costs 2006–2007 The costs decelerated even more in 2008, suggesting that cost reductions with CDHPs are sustainable. –3.3% Traditional plan Cigna Choice Fund Projected medical costs $140 7.7% Traditional plan $120 $122 $135 $111 $100 $114 $105 Cigna Choice Fund 2nd year 3rd year Percentage of prescriptions filled with generic drugs (2007) Cigna Choice Fund $100 $100 $80 $97 1st year Before Choice Fund This cost-cutting occurred even as Cigna Choice Fund members used more preventive services and complied more often with treatment recommendations. 61.4% Preventive care visits 2006–2007 42% 44% 39% Traditional plan 56.9% Cigna Choice Fund Cigna Choice Fund (1st year) (2nd year) Traditional plan (2007) * Total medical cost is what is paid out in medical and pharmacy claims from all sources: the employer health plan, individual's health savings account funds, and individual's out-of-pocket expenses. Source: “Cigna Choice Fund Experience Study,” Cigna, January 2009. MARCH 2009 / MANAGED CARE 41
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