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Bush Executive Order is Good, But Encouraging Health Care Consumerism Requires More Than Cost and Quality Transparency

Posted on: Wednesday, 30 August 2006, 09:00 CDT

CHICAGO, Aug. 30 /PRNewswire/ -- Destiny Health today praised President Bush for ordering federal agencies to make public health care cost and quality information, but warned that while it is an important step, it is not sufficient to inspire true consumerism in the health care sector.

"What's missing is the 'why,'" said Art Carlos, chief actuarial officer of the consumer-directed health care firm. "The President deserves high praise, but the fact remains that unless Americans have something to gain from seeking out this information, it is unlikely they will go to the trouble."

Carlos noted that some 97 percent of Americans are covered by traditional forms of insurance that dictate provider networks and that both negotiate and pay the bills.

"In a recent nationwide survey commissioned by our firm (http://destinyhealth.mediaroom.com/index.php?s=press_kit&category_id=6 ), only 10 percent of the respondents said they would 'shop around' for health care services even if comparative information was available," Carlos said. "Paternalistic forms of coverage have caused people to disengage from the process and unless that issue is addressed, nothing much is going to change."

In a just-published Position Paper (http://destinyhealth.mediaroom.com/index.php?s=white_papers&item=16 ), Destiny Health outlines a series of reforms it believes are required if true consumerism is to make its cost-reducing and quality-enhancing impact felt in the health care arena.

"That list includes giving people access to the information they need, but it also addresses the need for incentives that directly benefit the consumer, as well as regulatory changes, such as allowing the purchase of health insurance across state lines," Carlos said. "So while we are grateful to the President for providing an important piece of the puzzle, we remain convinced that a piecemeal approach will not suffice."

About Destiny Health

Destiny Health's innovative consumer-directed health plan is designed to make people healthier and enhance and protect their lives, by balancing comprehensive health insurance coverage with incentives that motivate active participation in health care and reward healthy behaviors.

Destiny Health's consumer-focused strategy is modeled after Destiny Health's parent company, Discovery, an international life and health insurance company that has successfully enrolled over 1.8 million members in its medical plan since 1992. Combined, Destiny Health and Discovery are the largest providers of consumer-directed health care in the world.

Destiny Health has forged partnerships with some of the most respected and recognized names in the health and wellness field to help extend the reach of its consumer-directed health plan. The Destiny Health Plan is currently marketed by The Guardian Life Insurance Company of America in Illinois, Virginia, Washington, D.C., Maryland and Texas. It is also available in Wisconsin through independent brokers. In addition, Destiny Health Plan members enjoy robust perks through partnerships with Life Time Fitness, Curves and other regional and local fitness facilities. For more information, visit http://www.destinyhealth.com/.

For more information contact: Eileen Rochford (773) 463-2480 eileenr@theharbingergroup.com or Jill Morino (773) 848-5166 jillm@theharbingergroup.com

Destiny Health

CONTACT: Eileen Rochford, +1-773-463-2480,eileenr@theharbingergroup.com, or Jill Morino, +1-773-848-5166,jillm@theharbingergroup.com, both for Destiny Health

Web site: http://www.destinyhealth.com/

Source: PRNewswire

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