Turning health dollars into good sense: New study shows Personify lowers health costs

When is good health also good business? The answer should be “always,” but an announcement we made today provides insight into exactly how.

Wakely Consulting Group , an independent healthcare actuarial firm, compared Personify Health medical claims from 2022 and comparable market data from the same time period. Wakely’s rigorous analysis indicates that Personify Health members in elected programs had 23% lower allowed costs when compared to the market average. In dollars and cents, that equates to a reduction of $762.96 per employee per year, including the member cost-share, and with risk and geography adjustment. The study demonstrated detailed cost savings that were made possible by Personify Health’s approach to health plan administration, including: 27% lower outpatient costs; 17% lower emergency room costs; 14% savings for high-cost claimants; and 80% lower out-of-network spend.

These positive findings, along with our recent wellbeing program study (conducted by Merative Health Insights), are statistical validation that the merger of Virgin Pulse and HealthComp into Personify Health has enhanced our core offering and value proposition, and we’re making a measurable and meaningful impact for our clients and members. That’s very good news for our business, but what about the impact on yours? Two recently reported numbers have gotten a lot of attention, and place the importance of the Wakely report’s findings in a larger context:

• PwC’s Health Research Institute is projecting a 7% year-over-year medical cost increase for employers in 2024.

• The National Bureau of Economic Research reports that increasing medical costs are taking a toll on employees – a 1% rise in healthcare prices leads to a 0.4% decrease in an employer’s workforce.

In other words, employers’ annual projections about the rising cost of healthcare on the bottom line are only getting more severe. Employees also have reason to be concerned about the impact on their job security and their wallets. The need to reduce the cost of care – an elusive goal for decades – has become more urgent, and new approaches are necessary to solving this persistent issue.

The key is employee engagement. When people have the tools to take agency over their health and wellbeing – and the support to better navigate and maintain it – the results are game-changing, physically, mentally, and financially. Engagement has been a frustrating roadblock for many employers and their members, so what is Personify doing that’s helping to break through? AI-optimized member outreach, payment integrity capabilities, advocacy, and coaching programs are combining technology with human expertise and intervention in a single platform for a hyper-personalized member experience.

Care management and cost containment don’t need to be at odds. With the right approach they will work together harmoniously. It’s what we envisioned when the plans were being formulated for Personify Health – health plan administration, holistic wellbeing, and navigation and advocacy in one simplified, connected experience, personalized for you.?

That’s what people need – and want – to make their individual goals a reality. The numbers from Wakely illustrate a great first step. There will be many more to come.