NoBlood

Jan B. Wade · #1 (**permalink**) 10-13-2005, 05:53 PM

Another Paradigm is Shifting

http://www.medscape.com/viewarticle/513086?src=mp (requires registration)

Why Is Consumer-Directed Health Care (CDHC) Growing Rapidly in America?

Posted 09/30/2005
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Grace-Marie Turner

The American health insurance marketplace is being transformed by the move toward consumerism, with patients seeking more control over their healthcare spending and treatment options. This is precipitating many changes in the medical profession -- some welcome, some not.
Increased consumerism can strengthen the patient-doctor relationship, with patients working more actively with their physicians, instead of their insurance companies, in making vital decisions.

But it also means that patients will demand more medical and cost information from their physicians.

Health Savings Accounts, or HSAs, can give patients an incentive to seek value in their spending on healthcare. Those with HSAs are motivated to engage in managing their own health.

For example, one major study[1] found that consumers with HSAs were 50% more likely to ask about costs and 3 times more likely to choose a less extensive, less expensive treatment option.

These HSA consumers also are more attentive to wellness and prevention: They were 25% more likely to engage in healthy behaviors and 30% more likely to get an annual physical. Why? Fifty-one percent of these consumers agreed that "If I catch an issue early, I'll save money in the long run."

Many companies are instituting new programs to engage employees with chronic conditions in better coordinated care since patients in consumer-directed health plans are more likely to comply with treatment regimens for their chronic conditions.

Of course, consumer-directed health care is not a complete solution for America's healthcare problems, and it presents many challenges for physicians. But it is rapidly growing and can help in many ways, including motivation to return the medical profession to its foundation of care centered on the patient-doctor relationship. One key is for physicians to be responsive to this emerging movement.

That's my opinion. I'm Grace-Marie Turner, President, Galen Institute.

Galen Institute: http://www.galen.org/

References

McKinsey & Company. Consumer-Directed Health Plan Report -- Early Evidence is Promising. June 2005. Available at: http://mckinsey.com/clientservice/payorprovider/Health_Plan_Report.asp

Dave Brewington · #2 (**permalink**) 10-14-2005, 09:40 AM

Do you think this new swing towards consumer directed healthcare will effect bloodless/ blood conservation programs?
In what way?

Jan B. Wade · #3 (**permalink**) 10-15-2005, 11:19 AM

We are seeing bloodless move from a small niche accomodating basically one group to the mainstream of health care. The effect of Consumer-Directed Health Plans on Jehovah's Witnesses may or may not be significant. They are already very involved in directing their care. When it comes to the general population seeking alternatives to blood transfusions the studies mentioned in the attached article seem to indicate better access to our programs.

Here's a quote from the attached article -

"One study found that patients in consumer-directed health plans were 20% more likely to comply with treatment regimens for chronic conditions."

Here's another - "

"Consumers are more attentive to cost control and to behavior changes that could result in better health outcomes and cost savings over the long term.

CDHC consumers were more likely to perform independent research to identify treatment options, for example, even when insurance was paying, and they were 20% more likely to comply with treatment regimens for chronic conditions."

Here's a link to an article explaining the topic of Consumer Directed Health Care.
http://www.galen.org/fileuploads/Consumerism.pdf

Here's the opening statements from the article -

"Consumerism is working in the health sector, with a number of studies showing that companies and individuals who move to Health Savings Accounts and similar plans experience lower costs while maintaining access to needed health care.

Health Savings Accounts are the newest entrants in the field of consumer-directed health care. HSAs were created as part of the Medicare Modernization Act and
became available January 1, 2004. They allow individuals, employers, or employees
to invest tax-free dollars in health accounts to pay for routine health care. The accounts
are accompanied by insurance policies to cover larger medical bills.

Americaâ€™s Health Insurance Plans, which represents the countryâ€™s major insurers and
health plans, surveyed its members earlier this year and found that more than a million people were enrolled in HSAs as of March, 2005.

The study also found that 37 percent of those purchasing individual policies were
previously uninsured. While critics claim that HSAs will be attractive only to the young and healthy, studies have shown that 40 percent of HSA purchasers make less than $50,000 a year, a majority of purchasers are families with children, and about half are over age 40, showing they have broad appeal.

Consumerism in health care also has led to new incentives for people to be more engaged in managing their health. Many companies are instituting new programs to provide better coordinated care for those with chronic conditions, such as diabetes,
heart disease, and asthma. One study found that patients in consumer-directed health plans were 20% more likely to comply with treatment regimens for chronic conditions.

HSAs are only one example of a constellation of offerings that give consumers more power and control over health care decisions. Other consumer directed products, such as Health

Reimbursement Arrangements (HRAs), also are helping companies to lower their health
costs while providing incentives for employees to be more engaged in managing costs and care."