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Alegent Health Sharing Rebates With Employees Thanks to Consumer-Driven Plan
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| Copyright: | PR Newswire | | Source: | PR Newswire | | Wordcount: | 1030 |
OMAHA, Neb., April 25 /PRNewswire/ -- The check is in the mail to the more
than 5,000 employees of Alegent Health who are participating in the health
system's ground breaking -- and money saving -- consumer-driven health care
plans.
But even more significant than the cost savings achieved through the
consumer-driven health care program has been the improvement in the health of
participating employees and their families over the past two years, Alegent
Health's leadership said. For example, nearly 400 employees successfully
completed smoking cessation classes while 670 participants in weight
management programs lost a combined 6,500 pounds.
"When we launched our Next Generation health plans two years ago, we
wanted to provide incentives that would reward employees for taking better
care of themselves and their families," said Alegent Health CEO Wayne Sensor.
"The results we've seen have exceeded our expectations in nearly every
category -- from smoking cessation to weight loss to preventive care to
improved management of chronic illnesses. These results should serve as a
beacon of hope for all who believe that individuals hold the power to not only
improve their own lives, but to change our health care system for the better."
Currently, 88 percent of employees who have chosen an Alegent Health
benefit plan participate in either a Health Reimbursement Account (HRA) or
Health Savings Account (HSA), which offer participants flexibility and control
over how they spend their health care dollars. The remaining 12 percent are
in a Preferred Provider Plan. Alegent Health covers 100 percent of preventive
care costs and pays employees to complete electronic health check-ups.
In addition, the company has provided access to free health coaches and
deposited special incentives into the health care accounts of employees who
have made significant lifestyle changes or taken new steps to manage a chronic
illness.
Overall, Sensor said, Alegent Health employees have proven their ability
to manage health care spending wisely and have steadily added to the balances
in their accounts that can be used for future health care expenses. The
current balance in employees' accounts totals nearly $1.9 million.
The change in spending patterns by employees has resulted in dramatic
slowing of claims growth over the past two years, Sensor said. While the
health system had budgeted for a 5.8 percent increase in health care costs
from 2005 to 2006, the actual increase was just over 1 percent. As a result,
Alegent Health is returning nearly $700,000 to plan participants.
Sybil Bendorf, who works in Food and Nutrition at Alegent Health Bergan
Mercy Medical Center, said the $100 rebate check she and other employees will
receive isn't the only reward for participating in Alegent Health's Next
Generation health plans. Bendorf took advantage of the health plan's
incentive to join Weight Watchers for free, and has since lost nearly
70 pounds. Joining a weight management program at no cost is just one example
of the many health incentives offered by Alegent Health's health care plans.
"Participating in a consumer-driven plan has given me the push I needed to
take charge of my health. Thanks to Weight Watchers classes offered
conveniently at work, I've shed 68 pounds and can easily walk up the stairs
without getting winded. I'm less stressed and was able to stop taking one of
my high blood pressure medications. Now I'm confident I'll be around to watch
my grandchildren grow up," said Bendorf.
Of the three consumer-driven plans Alegent Health has offered, Bendorf
selected the HRA, which is funded by the health system and will maintain a
balance as long as the employees remain in their jobs. Other plans include a
HSA, which allows unused balances to be carried forward even after an employee
leaves the company. The third choice is a Preferred Provider Plan.
When the health plans were implemented on January 1, 2006, Alegent
Health's leadership pledged that if employees could achieve a collective
improvement in health and slow rapidly rising costs, some of the savings would
be returned to them. In designing the plans, Alegent Health officials said
they recognized early on that the amount of money spent on preventive care
would significantly increase.
"To achieve lasting results, we recognized the need to actively engage
employees to take charge of their health through preventive care," said Ted
Schwab, chief innovation officer of Alegent Health. "Nationwide, while
2.8 percent of the health care dollar is spent on preventive care, 7 percent
of our expenditures went toward preventive care. But we believe this
investment in employees' health is paying off by bettering their lives even as
it uses health care dollars more wisely."
CEO Sensor said Alegent Health's consumer-driven health care plans were
introduced as part of a broader effort to put patients at the center of the
health care equation. This broader initiative involves providing meaningful
quality comparisons and introduction of an online tool called My Cost to help
all patients understand their out-of-pocket costs for the most common
treatments and procedures.
"As we started to envision what consumers would need to gain better
control of their own health and medical spending decisions, we quickly
realized that access to meaningful quality data and out-of-pocket costs would
be critical to the equation," Sensor said. "When consumers truly understand
the value of the health care they receive, and when they are empowered to make
good decisions, everyone benefits. We believe our experience with
consumer-driven care can serve as a model for others and lead to positive
changes in the health care system."
Alegent Health is the largest not-for-profit, faith-based healthcare
system in Nebraska and southwestern Iowa with nine acute care hospitals, more
than 100 sites of service, over 1,200 physicians on its medical staff and
roughly 8,500 employees. Alegent Health is making healthcare better with an
exceptional commitment to quality and by providing patient focused care for
the body, mind and spirit of every person consistent with its faith-based
mission. Alegent Health continues the health ministry begun by its sponsors,
Catholic Health Initiatives and Immanuel Health Systems, cardiovascular
services, orthopaedics, oncology, physical rehabilitation, home care and
behavioral health. For more information about Alegent Health, visit
Alegent.com or call 1-800-ALEGENT.
SOURCE Alegent Health
CONTACT: Dina Maas of Alegent Health, +1-402-398-5653, or cell +1-402-250-9583
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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