A new study from CIGNA shows medical costs for individuals in account-based consumer-driven health plans (CDHPs) went down 26 percent over four years. Additionally, levels of care for preventive medicine, chronic disease management and evidence-based treatments were higher than their counterparts in traditional PPO and HMO health plans.

The Fourth Annual CIGNA Choice Fund Experience Study examined health care claims experience by 655,000 CIGNA customers over multiple years.

According to a press release from CIGNA, more than any health reform proposal currently on the table, these innovative free market plans have been consistently proven to deliver actual quality, accessible health coverage at substantially lower costs.

"The empirical data is in and it's undeniable: when health plans provide incentives for people to be engaged, their health care quality goes up and costs go down," said CIGNA President and Chief Operating Officer, David M. Cordani. "CIGNA's study shows that the incentives offered by consumer-driven plans--such as lower premiums, freedom of choice, and the ability to build up health savings--result in an immediate and sustained improvement in health care quality and lower costs."

Findings from the study show sustainable cost savings for CDHPs versus traditional plans. CDHP medical costs are 14 percent less than traditional plans the first year, cumulative cost savings rise to 19 percent in the second year, 23 percent in the third year and 26 percent in the fourth year.

Cordani estimates that if half of Americans enrolled in a CDHP (share is currently at 18 percent), the U.S. could achieve $350 billion dollars in savings over 10 years, based on results from the CIGNA study.

Other findings from the study:

Higher levels of care: People with CIGNA Choice Fund received recommended care at compliance rates that were similar or better than those covered by traditional CIGNA health plans. Key indicators such as use of preventive care, evidence-based care and disease management program participation were measurably better among those in CIGNA CDHPs than those in PPOs and HMOs.
Less cost for those with chronic conditions: Medical cost trend was substantially less for CIGNA Choice Fund customers with hypertension (27 percent less), joint disease (21 percent less), and diabetes (15 percent less), than for individuals with either of those diseases in traditional CIGNA health plans. According to the study data, these cost savings were achieved without sacrificing care.

Instant Insights /

CIGNA study: Medical costs decline for individuals in CDHPs

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