This is 2nd in a series of Research Reviews focused on "The Science of Health Incentives™".

The jury is no longer out. Incentives are here to stay. According to a survey by Lockton Benefit Group, healthcare constituents consider the incentive components of the recent healthcare legislation as the "most beneficial element" of the health reform law. Further, average spending per employee on incentives has risen 65% - from $260 in 2009 to $430 in 2010 - according to the National Business Group on Health and Fidelity Benefits. In fact, it is not uncommon for organizations to spend $1,000 per member or employee on incentives.

Trifecta™ is a program design methodology that aligns incentives with actions that generate immediate cost savings while impacting intermediate and long-term cost and outcome-related benefits. This approach, developed through the analysis of several years of client interactions and volumes of actual engagement data, provides the foundation for investment in incentive programs that will drive engagement without the uncertainty of longer-term risk reduction as the sole promise of return on investment.

By aligning the incentives with actions based on the Trifecta™ methodology, program sponsors can:

  • Generate immediate cost savings, which provides funding to support longer-term goals

  • Clearly identify the relationship between spending and financial return

  • Generate overall program cost savings

This research paper outlines the Trifecta™ methodology and gives specific examples of how it can be implemented to deliver cost savings and health engagement. While this research report focuses on consumers, Trifecta™ has been designed to apply the same methodology to providers.

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Incentive-Driven Healthcare - The Trifecta™ Methodology