America's Benefit Specialist March 2023

NOTEWORTHY

Integration Study shows that Cigna’s integrated employer clients saved $148 per member per year in 2021. Using a similar study method, Cigna then evaluated the financial impact of engaging employees to participate in health-improvement programs such as wellness coaching. The results show even greater client savings for integrated employer clients, exceeding $1,400 per member per year. In addition, Cigna found that when individuals with specific high-cost conditions and therapies were enrolled in a triple-integrated health plan and needed specialty medi cines, the savings for the health plan were nearly $9,000 per member per year, increasing to more than $11,000 per mem ber when the specialty drug is for an inflammatory condition like rheumatoid arthritis. Savings for the plan were almost $17,500 per year for members who took specialty drugs and had a confirmed depression diagnosis. “Integrated benefits provide a real-time, connected plat form that enables us to anticipate our customers’ unique health needs and support them as they make important healthcare decisions—driving lower costs over time,” said Katy Wong, chief pharmacy officer, Cigna Pharmacy. “There is tremendous value for employers in having this holistic view across the continuum of care for their workforce. It produces significant savings on healthcare, which they can pass along to their employees, and it also improves the health of their workforce, which fuels productivity and business growth.” “The measurement confirms the direct connection be tween integrated medical, pharmacy and behavioral benefits and lower medical-claims costs,” said Todor Penev, commer cial analytics leader at Aon. “Employers should feel confident that integrated benefits deliver on the promise of improved health outcomes and ultimately lower the financial risk to the employer, helping build a more resilient workforce.” More than 60 percent of adults in the United States live with a chronic disease, such as musculoskeletal pain or dia betes, and chronic disease is one of the leading drivers of the nation’s $4.1 trillion annual health costs. Integrated benefits can help curb the costs of chronic conditions. Cigna found that when members were enrolled in a triple-integrated health plan, the savings for the health plan were: • nearly $400 a year for members with a musculoskeletal diagnosis • more than $1,400 a year when an individual with a muscu loskeletal diagnosis is engaged with a health coach • nearly $2,500 per member per year with a diabetes diagnosis Cigna found that members with integrated benefits and support from health-improvement programs need fewer emergency-room visits and fewer costly invasive in-patient procedures. Members with diabetes have a 17% lower rate of avoidable emergency-room visits. Members with musculo-

this year, 78% stated that healthcare spending will factor into their efforts. The survey of 1,018 U.S. respondents also found that 65% are at least somewhat concerned about their ability to afford care for themselves or their family this year, and that number jumps to nearly 80% when asked about their ability to afford care longer term, into retirement. These concerns stem from various economic factors—like inflation impact ing budget (60%) and rising out-of-pocket costs associated with employer health benefits (40%)—that are only fueling continued uncertainties post-pandemic. However, few re spondents feel they are prepared to manage their health care finances this year and beyond, with almost half only feeling somewhat prepared. The onus has fallen on employers to provide the necessary tools to help employees address these concerns. According to the survey, 77% agree that their employer should bear significant responsibility for supporting them in their finan cial preparedness for healthcare costs. While respondents say their employers are preparing them to face the financial realities of healthcare through benefits like health insurance (59%) and 401k/retirement plans (49%), they expect more. Only 11% said that their employers offered lifestyle bene fits—unveiling a largely untapped opportunity. While many equate lifestyle benefits to free lunches and other perks, there are a multitude of lifestyle-based benefits employers can provide—such as healthy living and family care—that directly address the concerns respondents shared. When asked if they were to set an additional resolution specifically about their healthcare finances, respondents noted improving overall financial health (45%) and protecting themselves from unexpected healthcare expenses and medi cal debt by building up a savings cushion (37%). On the other hand, only 15% said they would make tax-free saving/spending a priority by enrolling in an FSA or HSA, or by taking advantage of an employer-provided HRA. This lower number likely indicates a knowledge gap regarding the value of these programs, especially as employees can save upwards of $2,000 per year on taxes depending on their account elections and current tax rate. HSAs, which offer the most significant tax advantages, are still too often under-uti lized and under-emphasized by both employers and employ ees, causing them to miss out on significant savings oppor tunities that could help them achieve their 2023 resolutions. To learn more, visit www.alegeus.com. EMPLOYERS ACHIEVE LOWER COSTS AND IMPROVE HEALTH ENGAGEMENT WITH INTEGRATED BENEFITS, STUDY SHOWS A study by Cigna finds that triple integration of medical, pharmacy and behavioral benefits resulted in lower health care costs for employers. Conducted by Aon, the Value of

benefitspecialistmagazine.com | ABS 31