Recent studies by CIGNA (NYSE: CI) and HealthPartners demonstrate that individuals improve their health and lower their annual medical costs when their medical and pharmacy benefits are supplied by one company.

The analyses were conducted independently from one another and involved a review of claims for over 11 million individuals in total. The research shows improved health resulting in medical cost savings -- by up to $132 per person per year and up to $251 per family* per year on average when medical and pharmacy coverage is provided by the same health service company.

"The only sustainable way to lower health care costs is to proactively work to keep people healthy, including helping them manage their chronic conditions appropriately," said CIGNA Chief Pharmacy Officer Jon Maesner, PharmD. "Data exchange alone is not sufficient to improve health and lower overall medical costs. Improving health requires coordination and incentives to change behaviors. Having medical and pharmacy benefits within the same company means we can coordinate both data and services - with very good result."

CIGNA's analysis also showed that individuals with integrated medical and pharmacy programs were much more likely to complete a health assessment, engage in health improvement programs such as health coaching and chronic condition management, and take their medications appropriately. Previous CIGNA research also indicated that combined medical and pharmacy plans reduced gaps in patient care.

The HealthPartners study of more than 150,000 customers demonstrated that groups with both medical and pharmacy benefits saved an average of 3.8 percent on their total cost of medical care, while groups that carved out their pharmacy benefits to another pharmacy benefit management company had seven percent higher hospitalization rates.

"This is more good evidence of how integration of care can benefit our customers and patients," said Scott Schnuckle, HealthPartners senior vice president, dental, pharmacy and business development. "By keeping medical and pharmacy benefits within the same company, we can focus on the entire person, instead of just managing a pharmacy or medical benefit. The result is improved health at a lower cost."

In addition, those who did not have access to condition and care management programs had a 38 percent higher utilization rate than those with both medical and pharmacy benefits with HealthPartners.

Since 2006, CIGNA and HealthPartners have worked in alliance to offer companies with employees residing in Minnesota and other states health plan products using the HealthPartners and CIGNA networks of health care professionals. The CIGNA-HealthPartners alliance offers a coast-to-coast, combined network for Minnesota-based companies that have employees in other states. This same network is offered to national companies headquartered elsewhere who have employees residing in Minnesota.

*The savings are estimated at $228 - $251 annually when dependents or others covered under an employee's plan are included in the calculations.

Source:

CIGNA

HealthPartners