The Performance and Potential of Consumer Driven Health Care

In testimony before the Joint Economic Committee, Howard Leach, head of human resources for Logan Aluminum in Kentucky, related his company?s positive experience with consumer directed health care for the company?s 1,000 workers. The company CUT its health costs by 18.7% in 2003 over 2002, ?an improvement of $925,000 in the company?s bottom line,? Leach said. Logan tailored an Aetna HealthFund package to include incentive deposits into employees? health accounts, averaging $418.75 for each employee. Employees earn deposits to their accounts by getting annual health risk appraisals, and more than 90% are now participating in health management programs. The net effect of employee out-of-pocket costs was an increase of only $200 per employee for the year, comparable to the national average.


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In testimony before the Joint Economic Committee, Howard Leach, head of human resources for Logan Aluminum in Kentucky, related his company?s positive experience with consumer directed health care for the company?s 1,000 workers. The company CUT its health costs by 18.7% in 2003 over 2002, ?an improvement of $925,000 in the company?s bottom line,? Leach said. Logan tailored an Aetna HealthFund package to include incentive deposits into employees? health accounts, averaging $418.75 for each employee. Employees earn deposits to their accounts by getting annual health risk appraisals, and more than 90% are now participating in health management programs. The net effect of employee out-of-pocket costs was an increase of only $200 per employee for the year, comparable to the national average.


Click here to read the testimony.

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About the author