HealthPartners Reports Disease Management and Generics Reduce Expenses Nearly $70 Million

Reproduced from HealthPartners, Inc., May 22, 2007

Disease and case management programs and generic drug use reduced medical expenses by $69 million in 2006, according to a report by HealthPartners, Inc.

The program includes services that reduced medical complications for members with chronic illness and serious behavioral health conditions.

"We know that providing care that prevents medical complications significantly improves health and quality of life, and now we have data to show that it also reduces the medical costs and helps us make care more affordable," said Dr. George Isham, Health Partners' chief health officer.

HealthPartners said its program to encourage generic drug use was the most cost effective initiative in 2006, saving nearly $34.5 million. Nearly two out of three prescriptions (64 percent) for HealthPartners' members were for generic drugs, a significant increase from 50 percent in 2004. The average cost of a generic prescription is $23 compared to $130 for the average cost of a brand name drug.

Another program this is among the most cost effective is an initiative to prevent behavioral health crises that lead to emergency hospitalization. HealthPartners' "Behavioral Health Case Management" program reduced medical expenses by $3.6 million.

The program increased outpatient visits by 26 percent and increased adherence to medication by 10 to 67 percent, the health plan said. Providing early intervention decreased emergency room visits for depression by nearly 10 percent.

More than 100,000 HealthPartners members participated in disease management programs in 2006, the company said.

Programs that reduced expenses the most include disease management of rare and chronic diseases ($6.6 million), congestive heart failure ($2.1 million), coronary artery disease ($2.1 million), chronic obstructive pulmonary disease ($2.7 million) and behavioral health ($3.6 million).

Other programs that saw significant reduced expenses were inpatient case management ($7.7 million) and complex case management ($9.8 million).

 
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