CORRECTING and REPLACING: Third-Party Study Shows Collective Health Cuts Healthcare Cost Trend by Half Over Five-Year Period

Analysis of medical and pharmacy claims by Aon concluded that the savings were greatest for members with two chronic conditions, whose costs improved from $57 per member per year above matched control in year one to $1,130 below control by year five

SAN MATEO, Calif.--(BUSINESS WIRE)--Please replace the release dated April 26, 2023, with the following corrected version due to multiple revisions.

The updated release reads:

THIRD-PARTY STUDY SHOWS COLLECTIVE HEALTH CUTS HEALTHCARE COST TREND BY HALF OVER FIVE-YEAR PERIOD

Analysis of medical and pharmacy claims by Aon concluded that the savings were greatest for members with two chronic conditions, whose costs improved from $57 per member per year above matched control in year one to $1,130 below control by year five

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 long-term Collective Health employer health plan customers over a five-year period from 2017-2021.

Key findings from the Collective Health customers included in the Aon study:

• The Collective Health customers experienced a cumulative five-year trend in healthcare costs of 7.2%, less than half of the 14.9% seen in a precisely matched control group. Per member costs improved from $118 above control to $143 below the control by year five, representing $261 per member savings over the study period.
• The Collective Health customers 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.
• Member engagement with the Collective Health platform was high and increased for members with increasing numbers of chronic conditions.
• Healthcare claims cost for members with two chronic conditions significantly improved from $57 per member per year above control to $1,130 below control during the study period.
• The Collective Health customers reduced claims spend on outpatient surgery, radiology, and advanced radiology (CT/MRI/PET) during the study period when compared to matched controls.

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 medical and pharmacy claims costs over five years. The analysis found that members on the integrated TPA and navigation platform had, on average, lower overall healthcare costs than their counterparts in the control group,” said Leanne Metcalfe, PhD, Vice President of Commercial Analytics at Aon. “Data revealed that members made fewer trips to the emergency room and increased their use of preventive care.”

“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 can ultimately reduce costs and provide value over time for our customers. We estimate that in the aggregate our solution helped the customers in this study achieve approximately $11 million in lower claims over five years.”

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.