Vol. 1, Num. 1
July, 2008
Insights
In this Issue: Home | Feature | Best Practices | Insight Engine | Product Spotlight
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space Philip Marshall, M.D., MPH
Philip Marshall, M.D., MPH
Vice President of Product Strategy
Dr. Marshall is responsible for general product direction at WebMD Health Services, and oversees the architecture of WebMD's PHR.
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Transforming Healthcare with the Personal Health Record

Employers, health plans, and consumers agree: the U.S. needs to get healthcare costs under control and improve the reliability and quality of care. To turn the tide, consumer-directed health plans (CDHPs) have emerged at the forefront of efforts to control healthcare costs and improve quality of care. And personal health records (PHRs) are a critical enabler of that change.

Putting consumers in the driver's seat

In their 13th annual study "The One Percent Strategy: Lessons Learned From Best Performers," Watson Wyatt and the National Business Group on Health (NGBH) reported that by 2009, nearly 55% of U.S. corporations plan to offer a consumer-directed health plan. This is up from 33% of employers who offered a CDHP in 2006, and 39% in 2007.

One of the most compelling statistics in the report indicates that companies with at least half of their workforce enrolled in a CDHP had a two-year median cost trend of 3.6% — almost half that of employers without a CDHP.

"Companies with at least half of their workforce enrolled in a CDHP had a two-year median cost trend of 3.6% — almost half that of employers without a CDHP."

It appears that putting the consumer in the driver's seat may be the most direct way to affect healthcare costs.

If consumers are more exposed to their choices and are motivated to take responsibility for them, they should make better, more cost-effective decisions. Ultimately, those decisions will include choosing care providers based on quality and cost ratings and choosing the right health plan based on each family's individual needs. They should also support better health and lifestyle choices around behaviors such as diet, exercise, smoking, and preventive care.

In order for consumers to make better decisions and better manage their health, the PHR emerges as a critical enabler.

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