Health Savings Account Blog

In addition, the expenses paid directly by members in Cigna’s CDHPs were similar to traditional plans in the first year and 4% lower in the second year, refuting criticisms that consumer-directed plans shift costs to consumers. In addition, the two-year survey found that use of preventive care increased, CDHP members continued to receive recommended care at rates similar to traditional plan members, and medication compliance, especially for those with chronic conditions, improved.

Helen Darling, president of the National Business Group on Health, said, "As we debate in earnest, at national and state levels, how to provide insurance for millions of people without protection, consumer-driven plans have to be at the top of the list of reasonable solutions."

And there is more: HealthPartners, a Minnesota-based health plan, released results of a study it conducted that also shows members who have Health Savings Accounts and Health Reimbursement Arrangements have lower medical costs and are more engaged in seeking out more cost-effective care.

The analysis shows that even when adjusted for illness burden, health care costs were 4.4 percent lower for HealthPartners members in these consumer directed health plans compared to members in traditional plans. Researchers found the lower costs were driven by CDHP members receiving care from lower cost providers and that providers used fewer resources such as diagnostic imaging and other procedures.

Both companies say that the cost-saving results have encouraged more employers to offer HSAs and HRAs in the upcoming 2008 open season, which begins in a few weeks.