Consumer Driven Health Plans Save 21%

[NateRiver]

Health Plans
The American Academy of Actuaries published a study on Consumer Driven Health Plans that not only showed savings but also care was received in equal or greater degrees to traditional plans.

So far all that is being offered by the administration will increase cost and down the quality of care.

[Chris]

With regard to first-year cost savings, all studies showed a favorable effect on cost in the first year of a CDH plan. CDH plan trends ranged from -4 percent to -15 percent. Coupled with a control population on traditional plans that experienced trends of +8 percent to +9 percent, the total savings generated could be as much as 12 percent to 20 percent in the first year. All studies used some variation of normalization or control groups to account for selection bias.

For savings after the first year, at least two of the studies indicate trend rates lower than traditional PPO plans by approximately 3 percent to 5 percent. If these lower trends can be further validated, it will represent a substantial cost-reduction strategy for employers and employees.

Generally, all of the studies indicated that cost savings did not result from avoidance of inappropriate care and that necessary care was received in equal or greater degrees relative to traditional plans. All of the studies reviewed reported a significant increase in preventive services for CDH participants. Three of the studies found that CDH plan participants received recommended care for chronic conditions at the same or higher level than traditional (non-CDH) plan participants. Two studies reported a higher incidence of physicians following evidence-based care protocols.

http://www.actuary.org/pdf/health/cdhp_may09.pdf

[Chris]

My stepfather started out as an actuary.  They are the bean counters that figure actuary charts, averages, and statistics for every procedure, for every demographic, and plan for contingencies.  His degree is in mathematics... they figure everything down to the tenth of a penny.  If insurance wasn't such a profitable business, the gummint wouldn't be going after them.  But its still better than dying at home while the ****ing government sends you home to wait your turn.

[Chris]

Since 1970 -- even without the prescription drug benefit -- Medicare's costs have risen 34% more, per patient, than the combined costs of all health care in America apart from Medicare and Medicaid, the vast majority of which is purchased through the private sector.

Since 1970, the per-patient costs of all health care apart from Medicare and Medicaid have risen from $364 to $7,119, while Medicare's per-patient costs have risen from $368 to $9,634. Medicare's costs have risen $2,511 more per patient.

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=480067

[NateRiver]

YEP!You want it screwed up and expensive, hand it over to the government. 

[md11hydmec]

Yep, the government motto is ---If it aint broke, fix it till it is!

[Gratiot]

Yep, the government motto is ---If it aint broke, fix it till it is!

I don't know what the solution is.  But it'd be hard to declare that our medical system isn't already broken.  Something needs to drastically change.