MINNEAPOLIS--(BUSINESS WIRE)--Evolution1®, the nation’s largest electronic payment, on-premise, and cloud computing consumer driven healthcare solution, is playing a key role in the slowdown in national health spending – ultimately saving consumers billions of dollars annually.
A recent study – authored by nationally-recognized economists from Harvard University – concludes that public healthcare spending could drop over the next 10 years by as much as $770 billion below predictions. The study appears in the May issue of Health Affairs, the leading journal at the intersection of health, healthcare, and policy.
“Despite earlier forecasts to the contrary, U.S. healthcare spending growth has slowed in the past four years, continuing a trend that began in the early 2000s. We find that the 2007-09 recession, a one-time event, accounted for 37 percent of the slowdown between 2003 and 2012. A decline in private insurance coverage and cuts to some Medicare payment rates accounted for another eight percent of the slowdown, leaving 55 percent of the spending slowdown unexplained,” said study authors David M. Cutler and Nikhil R. Sahni. Cutler is the Otto Eckstein Professor of Applied Economics in the Department of Economics at Harvard University, in Boston, Massachusetts. Sahni is a senior researcher in the Department of Economics at Harvard University.
“We conclude that a host of fundamental changes – including less rapid development of imaging technology and new pharmaceuticals, increased patient cost sharing, and greater provider efficiency – were responsible for the majority of the slowdown in spending growth,” said Cutler and Sahni. “If these trends continue during 2013-22, public-sector healthcare spending will be as much as $770 billion less than predicted. Such lower levels of spending would have an enormous impact on the U.S. economy and on government and household finances.”
For this to be true and for the trend to continue, employers and consumers alike need solutions that remove much of the burden of administrative activities and empower them with insight and the ability to act proactively. Evolution1 offers the only solution that provides a single end-to-end user experience for administering reimbursement accounts coupled with a user experience that removes the complexity from decision making and streamlines healthcare management.
Along with its Partners, Evolution1 saved its customers and more than nine million consumers more than $2 billion in 2012 through annual healthcare cost reductions. These reductions result from better utilization of healthcare, provider transparency, and tax savings. This savings enabled employers to continue providing health insurance while putting more money in employees’ wallets to pay for healthcare costs. Additionally, Evolution1 saved its Partners more than $80 million in annual operating costs related to the administration of these benefit designs through automated claim processing, innovative payment solutions, and service automation.
“Amongst the constant change in the healthcare industry, one thing remains unwavering: our dedication to reducing costs and simplifying the business of healthcare,” said Jeff Young, chairman and CEO of Evolution1. “Our single-source end-to-end solution, our strong network of dedicated Partners, and our steadfast commitment to exceptional customer service and support enable us to make an extraordinary difference in the management of all types of reimbursement accounts. Day in and day out, we are helping consumers maximize their healthcare dollars.”
Evolution1 and its Partners serve more than 9 million consumers, making it the nation’s largest electronic payment, on-premise and cloud computing healthcare solution that administers reimbursement accounts, including Defined Contribution, HSAs, HRAs, FSAs, VEBAs, PRAs, Wellness, and Transit Plans.