Why CDHPS Are Flourishing

In the face of another year of economic volatility and legislative and regulatory change, Cigna’s consumer-driven health plan (CDHP) participation grew by 26% during 2012, resulting in one-in-five customers now participating in a Health Savings Account (HSA) or Health Reimbursement Account (HRA). Cigna president and chief executive, David M. Cordani said, “The growth of consumer-driven health plans continues because they help customers reduce their health risks and improve the quality and efficiency of their care, which results in lowering their total medical costs.” When compared to customers in traditional PPO and HMO plans, those in a CDHP achieved the following:

 They Lowered their health risks: When employers transitioned to only offering a CDHP, people improved their health risk profile by 12% in the first year compared to customers in a traditional plan.
• They reduced total medical costs: Cigna’s CDHP medical cost trend was 13% lower than traditional plans during the first year: costs were 20% lower for HSA customers and 11% lower for HRA participants. Cost reductions were achieved without employers shifting out-of-pocket health expenses to their employees. Seventy-five percent of HSA customers contribute more to their accounts than they spend.
 They became more engaged in health improvement: CDHP customers are twice as likely to complete a health risk assessment and those with a chronic illness are up to 25% more likely to participate in a disease management program than those enrolled in a traditional plan.
• They were more likely to compare cost and quality: CDHP customers were 59% more likely to use the directory to access cost and procedure information to help them review potential medical costs.
• They became more savvy health care consumers: Customers with Cigna Choice Fund plans and Cigna pharmacy benefits were more likely to choose generic medications compared to those in a traditional plan. In addition, CDHP customers used the emergency room at a 6% less than did people enrolled in HMO and PPO plans.
• They Received higher levels of care: CDHP customers had consistent or higher compliance with over 300 evidenced-based medical best practices than did their counterparts in traditional plans. CDHP customers also sought preventive care more frequently than customers enrolled in a traditional plan.

Last Updated 8/2/2017

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