Restraining Trend in Plan Payments: Disease Management of Six Conditions May be the Key

Abstract

Employers can control costs through effective disease management programs aimed at chronic conditions. Large employers can significantly reduce overall medical plan expenses by carefully selecting and implementing effective disease management programs. This article details how six chronic conditions, such as asthma and diabetes, drive nearly half of large employers' plan payments, but less than 5% of plan participants have significant expenses for those six conditions. In addition, these 5% of employees account for more than one quarter of total plan expenses. It appears that disease management could affect more than one quarter of total plan expenses. By identifying the conditions that are driving the greatest costs, employers can offer disease management programs to affected employees, which will not only drive down costs but might also improve patient care outcomes.