Sustainable Reductions in Health Plan Costs

Background:

A large life insurance company continued to see health plan premiums rise on a yearly basis. In 2009, to address increasing costs, the client had the foresight to put in an onsite clinic, employer health management program, incentive management program and environmental change with the anticipated result being the reduction of health plan costs. They were able to decrease the rate of increase of health plan costs, but eventually, costs began to rise, which challenged reserves, and in 2015 the client chose the Vigilant model to intervene.

 

Action:

Vigilant Health was engaged to bring in its unique integrated care model, population health management system, and payment structure to transform outcomes and produce better integrated care across the spectrum of the plan, unifying employer health management, incentive plans, clinical care and local medical community involvement.

 

Results:

  • Total Plan Paid as well as Plan Paid per Member decreased progressively and significantly over the last four years by 13% ($523,856) after the costs of the program. There is no adjustment for medical inflation in these figures.
  • These decreases occurred in Employees (~15%) and especially Spouses (~30%), who together comprise 79% of Plan cost.
  • Clinic Users with Chronic Disease have seen strong progressive reductions in total cost since 2014 (↓24%) with even larger changes in cost per member, resulting in a savings of $5,352 per member in 2017 relative to 2014.

 

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