Study: Integrated health benefits could save $976 per employee

Study: Integrated health benefits could save $976 per employee

By Rhys Dinshan | BenefitsPRO

A study of more than 91,000 insured members found significant cost savings for those using bundled health services.

Integrated health care benefits, which bundle certain services in one offering, are likely to give clients a better return on their investment (ROI) than traditional plans, according to a new study by Health Advocate. The study evaluated outcomes for 28 Health Advocate customers enrolled in their Empowered Health program, which integrates a proactive wellness program, administrative assistance in navigating the health care system, and a data analytics platform to track costs and outcomes, among other services. The 28 clients represented around 91,000 insured members.

Health Advocate found that, when compared to the health care market, the overall per member per year (PMPY) cost of those in its integrated benefits program was almost $1000 lower. Taken across the 28 clients, the savings represented a ROI ratio of 17.6 to 1, the study concluded. The PMPY costs for the integrated health benefits also grew almost 2% from 2017 to 2018, compared with the nearly 4% growth in the overall market.

“This analysis confirms the value and cost savings organizations can achieve by using our integrated, personalized approach to employee health and well-being,” Abbie Leibowitz, founder and president emeritus of Health Advocate, said in a press release.

Beyond costs, the study found that preventive and recommended care benchmarks also improved for those using the integrated health plan. Among the 28 clients, compliance with colorectal cancer screenings rose from around 54% to 63%, while compliance with breast cancer screenings increased from around 69% to 77%. There was also marginally improvements in compliance with breast cancer screenings and diabetes tests.

Health Advocate also noted that it contacted around 52 percent of the study’s members via calls, letters and emails in a bid to foster better health habits. For those members, PMPY costs increased 1.5% on average from 2017 to 2018 compared to the almost 4% increase in the market. The study also looked at two clients who were new to the integrated benefits programs. While one saw a 4% decrease in their PMPY costs against a 6% market increases, another saw their PMPY rise 1% against a 5% market increase.

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