How Consumer Driven Health Care Plans Reduce Costs

Consumers who moved from a traditional health plan to consumer driven health plan (CDHP) were able to reduce their health care spending significantly. They also increased their use of preventive care, according to a study by Health Care Service Corp. (HCSC).  HCSC operates Blue Cross and Blue Shield Plans in Il, Texas, Okla. and N.M.

The CDHP program, BlueEdge, is offered through the four Blue Cross and Blue Shield Plans and includes health savings account (HSA) and health reimbursement account (HRA) options. The study reveals the following about members who went from a traditional plan to a CDHP:

• They were 4% more likely to get preventive services.
• They reduced health care utilization more than 12%.
• They were 10% more likely to fill prescriptions with generics.
• They spent 24% less on in-patient hospital services and 8% less on out-patient services.
• They had a 12% decrease in emergency room visits.
• They reduced combined medical and pharmacy spending by 11%

Employers that offered only a CDHP saw even greater spending reductions up to 14.4% over the three years after moving from a traditional plan to a CDHP