Basic Premise

At the core of every effort to reduce healthcare costs is the need to change consumer and provider behavior.  Incentives are the cornerstone to driving that behavior change.

 

Incentive Driven Healthcare, or IDH, offers the best hope to reduce healthcare costs for several reasons:

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  • Without incentives, consumers and providers generally respond to a voluntary request for participation approximately 10 to 15 percent of the time.
  • Incentives offer a compelling value proposition - the incentive cost is not incurred until the individual takes the desired action.
  • Incentives are simple and easily understood - in a confusing healthcare world, people understand messages such as "Be Healthy And Be RewardedTM".
  • The realization that if incentives had been employed to drive consumers and providers, many of the techniques used over the last 30 years in the United States (e.g., managed care, disease management, CDH) could have been more successful.

Regardless of the health, technology or other solutions that come to market, success will hinge on the ability to engage and change the behavior of consumers and providers.