Lowering Costs, Empowering Members
Consumer-driven health care (CDHC) is about engaging and educating members so they can take control of their health. It’s about encouraging them to evaluate options and make informed choices that are both medically and financially prudent, ultimately benefiting both employers and employees.
Over the past several years, health care costs have risen at dramatic rates1:
- While inflation has tracked around 3% on average over the past 10 years, health care services rose on average more than 11%
- Annual health care costs have increased by double-digit amounts since the year 2000
- The average cost to cover each employee has almost doubled in just five years
To help alleviate the burden, many employers have shifted costs through higher copays, deductibles and coinsurance. However, as we face continued increases for health care services, it’s time to consider a new approach.
Compared to traditional health care plans, high-deductible CDHC plans typically carry a considerably reduced employer premium — some employers may experience as much as 18 to 20% lower premiums — making CDHC a viable alternative that can bring cost relief to health care budgets at the breaking point.
How CDHC Addresses Today’s Health Care Environment
CDHC engages consumers by incorporating fundamental changes in beliefs and behaviors:
- People who take care of their health gain control of their life. Our Medical OutreachSM program focuses on the 10% of members who drive nearly 80% of costs2, offering tools and information to help members manage chronic conditions, enjoy a healthier lifestyle and manage episodic care.
- To change behavior, people must believe their efforts make a difference. Our unique education program, Great-West Healthcare Driver’s EdSM, helps employers influence employee actions via targeted communications designed to educate consumers on the true costs of health care.
- Employees asked to take greater responsibility for their health care decisions need support. Our comprehensive web site offers 24/7 access to decision making tools, providing useful information such as hospital quality comparisons, estimated treatment costs and prescription drug costs.
- Employees faced with life-threatening illness may not have the luxury of time to consider cost; however, with more discretionary services, employees should be engaged in making responsible decisions.
- CDHC plan designs play an important role in driving member behavior. Great-West Healthcare Consumer AdvantageSM supports varying coverage levels for services and gives members a clear understanding of costs.
1 Hewitt Health Value Initiative, 2004
2 Great-West Healthcare claims data, January 2005