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Greg Hummer, Gregory Hummer, Simplicity Health, Simplicity Health Plans, CDHP, Consumer Directed Health Plan, HSA, Self Funded Small Group

CDHP COST SAVINGS DATA, Aetna, McKinsey, Simplicity Health Plans

Aetna's data from 2010 of April of its HealthFund consumer-directed plans showed continued cost savings for employers and members. Greg Hummer said, “This data from over 2 million members on CDHP plans shows conclusively that CDHP saves money and does not sacrifice quality healthcare.”Dr. Hummer went on to say that CDHP members had more than 15% lower primary care physician use for non-routine visits, and more than 10% lower overall medical costs than members in a preferred provider plan.”

Gregory Hummer pointed out that McKinsey’s studies showed similar results. Aetna’s data also showed:

HSA members are more involved in their health care: They are two and half times more likely to use online tools and three times more likely to take a health assessment than their PPO counterparts.

For full replacement HRA and HSA plans, employers saved $118 million per 10,000 members over five years.

Members in Aetna HealthFund plans spent more on preventive care and accessed higher levels of screenings for breast and cervical cancer as compared to members in traditional PPO plans; visited the emergency room less than their PPO counterparts; used the prescription drugs necessary to treat chronic conditions such as diabetes and heart failure at rates similar to PPO members; and used generic drugs at higher rates than members in a PPO plan.

Greg Hummer said, “The most important story of the last 30 years of healthcare has been missed by the major media. Not only does CDHP work to stem cost, but also people on a CDHP actually get healthier. What should be over the front page of every newspaper and in every magazine is the single most important fact that McKinsey discovered and that is that 25% of the people on a CDHP actually change their life style. That means they lose weight, stop smoking or drinking, wear seat belts, etc. all to keep from getting sick or injured. What an amazing fact! This alone has enormous implications for long-term cost for employers. Everyone should be on a CDHP, especially Medicaid recipients. For Medicaid alone, the Government would save about 90 billion a year in both fraud and decreased costs.”

Gregory J. Hummer, M.D.
Simplicity Health Plans
Consumer Directed Health Plan (CDHP)
Cleveland, Ohio