Analysis by Aon shows Collective Health’s integrated health benefits platform helped employers reduce healthcare costs over five years translating to a $261 per member slower allowed cost increase
SAN MATEO, Calif.–(BUSINESS WIRE)–Collective Health, the leading employee health benefits platform with integrated member advocacy and clinical navigation, today announced study results from global professional services firm Aon, which found that Collective Health’s solution cut the cost trend of healthcare benefits by half over five years for customers in the study.
Aon’s independent study reviewed member medical and prescription drug costs and analyzed the use of Collective Health’s digital engagement, Member Advocate support, and complex care management through Care Navigation™ for select Collective Health employer health plan customers over a five-year period from 2017-2021.
Key findings from the study include:
- Collective Health’s five-year trend in healthcare costs for its customers in the survey was 7.2%, less than half of the 14.9% seen in a matched control group.
- Collective Health customers in the study saw improvements in healthcare spend compared to market control across all of the top 10 most prevalent condition groups analyzed. Members with diabetes, hypertension, musculoskeletal conditions, and behavioral health diagnoses saw the greatest improvement in cost efficiency over time.
- Members on the Collective Health platform in the study engaged at high rates compared to industry benchmarks reviewed by Aon and engagement increased for members with multiple comorbidities.
- The claims cost for members with two chronic conditions during the study period had a statistically significant improvement from $57 per member per year above control in year one to $1,130 below control by year five.
- Collective Health customers in the study reduced claims spend on outpatient surgery, radiology, and advanced radiology during the study period when compared to a control.
Aon’s analysis is based on its Cost Efficiency Measurement (CEM) methodology, which compared medical and pharmacy costs for Collective Health enterprise customers in the business services and transportation industries to that of a matched control group. The two groups were precisely matched on geographic, demographic, and comorbidities during the same period. The study also analyzed healthcare benefits engagement from both groups over five years. The results pointed to the relationship between increased member engagement and reduced healthcare costs for employers in the study, especially for those with the most prevalent conditions and multiple comorbidities.
“Aon applied its rigorous methodology to analyze member medical and pharmacy claims costs over five years and found that Collective Health members in the study had lower overall healthcare costs than their counterparts in the control group,” said Todor Penev, Aon Senior Vice President, Fellow of the Society of Actuaries, and a member of the American Academy of Actuaries. “Data revealed that Collective Health members demonstrated higher engagement with member care navigation, fewer trips to the emergency room, and increased use of preventive care. All of these factors drove meaningful healthcare cost-savings for Collective Health’s customers.”
“This study offers clear results that speak to Collective Health’s vision of healthcare that’s easy to understand, navigate, and use for our members,” said Ari Hoffman, MD, Chief Clinical Officer and VP of Population Health at Collective Health. “By engaging members every step of the way during their benefits journey through both tech-enabled products like our mobile app and human supports like our Member Advocates and Care Navigation team, Collective Health helps create a seamless, personalized benefits experience for members that ultimately can drive cost-savings and value over time for our customers. We estimate that in the aggregate our solution helped surveyed customers achieve approximately $11 million in cost savings during the period studied.”
To learn more, read the full report from Aon.
About Collective Health
Collective Health is the leading health benefits platform that brings together medical, dental, vision, pharmacy, and program partners into an integrated solution that better enables employees and their families to understand, navigate, and pay for healthcare. By reducing the administrative lift of delivering health benefits, providing an intuitive member experience, and helping control costs and improve outcomes, the company guides employees toward healthier lives and companies toward healthier bottom lines. Collective Health, Inc. is headquartered in San Mateo, CA and has satellite offices in Chicago, IL, and Lehi, UT. For more, please visit collectivehealth.com.
Grace von Ohlen