PATH Savings Opportunities

PATH^® Savings Opportunities for Large Organizations
PATH applies the best-practices principles of insurance policy management and clinical care management for our clients. This provides a combined savings model that allows the employer to take direct control over unchecked healthcare cost inflation rates. The following examples demonstrate the level of savings that PATH can help you achieve:

Insurance Premium Management Savings
For larger, self-insured employers, there are great opportunities for savings with insurance premium management. We have helped our clients achieve significant results as shown in the example below for a typical group of 1,000 employees.

Estimated first year administrative savings: $1.2 million.

These savings comprise:

• 12% increased cash flow by converting to self-insurance
• 20% reduction in administration costs and commissions
• 10% for stop-loss savings
• No premium tax funding

Second and subsequent year annual savings should exceed $900,000 per year.

These savings are attributed to:

• 20% reduction in administrative costs and commissions
• No premium tax funding
• Stop-loss savings

Disease-Management Reporting Systems and Analysis Cost Savings
In addition to managing the insurance premium process, PATH also assists with coordination of disease-management reporting systems and analysis of cost savings opportunities. As an example, we provide an analysis for approximately 6,000 employees. The projected cost savings opportunities are based on disease classification, treatment protocols, and pharmacy claims.

For one client of approximately 6,000 employees, we projected the following savings when comparing actual care to improved care coordination opportunities.

• Projected savings of $629,380 for cardiac, diabetes, and pulmonary diseases. This value would increase to approximately $2.2 million with full patient compliance. Click here to see detailed projected cost savings.
• Projected savings of $358,493 from prescription drug purchasing improvements, with a focus on switching to generic brands and mail-order purchases. Click here to see detailed projected cost savings.
• Projected savings of $342,187 in prescription drug purchasing improvements by switching from brand names to over-the-counter (OTC) alternatives. Click here to see detailed projected cost savings.

Find out how PATH can help you achieve big savings in healthcare costs.