A new study from CIGNA shows medical costs forindividuals in account-based consumer-driven health plans (CDHPs)went down 26 percent over four years. Additionally, levels of carefor preventive medicine, chronic disease management andevidence-based treatments were higher than their counterparts intraditional PPO and HMO health plans.

The Fourth Annual CIGNA Choice Fund Experience Study examinedhealth care claims experience by 655,000 CIGNA customers overmultiple years.

According to a press release from CIGNA, more than any healthreform proposal currently on the table, these innovative freemarket plans have been consistently proven to deliver actualquality, accessible health coverage at substantially lowercosts.

"The empirical data is in and it's undeniable: when health plansprovide incentives for people to be engaged, their health carequality goes up and costs go down," said CIGNA President and ChiefOperating Officer, David M. Cordani. "CIGNA's study shows that theincentives offered by consumer-driven plans--such as lowerpremiums, freedom of choice, and the ability to build up healthsavings--result in an immediate and sustained improvement in healthcare quality and lower costs."

Findings from the study show sustainable cost savings forCDHPs versus traditional plans. CDHP medical costs are 14percent less than traditional plans the first year, cumulative costsavings rise to 19 percent in the second year, 23 percent in thethird year and 26 percent in the fourth year.

Cordani estimates that if half of Americans enrolled in a CDHP(share is currently at 18 percent), the U.S. could achieve $350billion dollars in savings over 10 years, based on results from theCIGNA study.

Other findings from the study:

• Higher levels of care: People with CIGNAChoice Fund received recommended care at compliance rates that weresimilar or better than those covered by traditional CIGNA healthplans. Key indicators such as use of preventive care,evidence-based care and disease management program participationwere measurably better among those in CIGNA CDHPs than those inPPOs and HMOs.
• Less cost for those with chronic conditions:Medical cost trend was substantially less for CIGNA Choice Fundcustomers with hypertension (27 percent less), joint disease (21percent less), and diabetes (15 percent less), than for individualswith either of those diseases in traditional CIGNA health plans.According to the study data, these cost savings were achievedwithout sacrificing care.