December 2006

CDH model can motivate improved lifestyle

When health-promotion and wellness programs are integrated with an overall consumer-directed healthcare (CDH) plan, members are positively motivated to modify behavior according to a research brief by Aon Consulting.

According to Tom Lerche, senior vice president with Aon Consulting, “CDH provides significant motivation for employees to spend their healthcare dollars wisely, and one of the best ways to do this is by developing and maintaining a healthy lifestyle. Health-promotion and wellness programs connected to more traditional health plans have experienced limited success due to a lack of both personal and financial motivation. However, we now have evidence that CDH works with promotion and wellness programs to improve personal health status and lower claims.”

This research brief also reveals the following:

• Plans that include a wellness/incentive plan and offer riders for individuals with chronic conditions work well for both the healthy and the sick.

• CDH members consume less healthcare when paying from their HSAs, (health-savings accounts) but do not accomplish this by avoiding necessary care. Rather, the savings trace to a reduction of more discretionary spending. For example: Chiropractic care runs less than two-thirds the industry standard, and emergency room visits are 15 percent below the norm.

• Short-term cost-saving behaviors do not result in long-term ill effects.

The research brief can be found in its entirety at www.aon.com/cdh_impact_research_brief.

Source: Aon Consulting Worldwide, www.aon.com/hcc