Impact of a Patient Incentive Program on Receipt of Preventive Care
Published Online: June 25, 2014
Ateev Mehrotra, MD; Ruopeng An, PhD; Deepak N. Patel, MBBS; and Roland Sturm, PhD
Despite widespread efforts to encourage prevention, rates of preventive care use fall well short of recommendations.1,2 Much of the focus on improving preventive care has been on decreasing financial barriers. For example, new laws in the United States have eliminated patient out-of-pocket costs for preventive health services.3 While removing out-of-pocket costs will increase the number of people who receive preventive care, the increase is likely to be modest.4,5 Employers and health plans are exploring whether patient incentive programs can spur greater use of preventive care.6,7
In a patient incentive program, a patient receives money or some other financial reward for healthy behavior.7 In theory, these programs address a fundamental problem with preventive care—when making the choice to receive preventive care, patients balance the inconvenience of receiving preventive care with distant and often intangible benefits. Humans generally discount such future benefits8,9 and therefore it may not be surprising that many patients do not seek preventive care. Incentive programs might help address this discrepancy between immediate inconvenience and future benefit by increasing the perceived immediate benefits of prevention.
There have been several randomized trials focusing on patient incentives to promote healthy behavior.10-12 For example, Volpp and colleagues found that a $750 incentive led to a three-fold increase in the number of people able to quit smoking.13 While important, this prior research has been limited to small clinical trials with a narrow focus, relatively short follow-up periods, and an incentive structure that may not be sustainable.7 In this paper, we study the impact of a patient incentive program operated by a private health plan in South Africa which has been in place for over a decade and includes almost 1.5 million enrollees. In this program, receipt of preventive care services “earns” points for enrollees, and points translate into rewards such as discounted travel or cell phone minutes. We assessed the impact of enrollment in this incentive program on receipt of preventive care services by comparing the receipt of preventive services among those who joined the program to those that did not join the program.
We analyzed the receipt of preventive care for members of the Discovery Health Plan in South Africa between 2005 and 2011. In South Africa, approximately 15% of the population, typically the most affluent, obtain private health insurance either independently or through their employer. Those with private insurance receive care from physicians and hospitals in a system entirely separate from the larger public healthcare system. In our eAppendix (available at www.ajmc.com), we demonstrate that those with private health plan insurance in South Africa are socioeconomically comparable to the general US population.
Our study population included both health plan members in the incentives program and those not in the incentives program. Our only exclusion criteria were those in a separate low-cost insurance product. These members were not eligible for the incentive program and because this product is targeted to the poor, the enrollee population is very different.
Patient Incentives Program
The health plan’s reward program focuses on encouraging both prevention and healthy behaviors. The incentive program is offered on a voluntary opt-in basis as South African law does not permit such programs to be made mandatory in a health plan product. Members must pay $17 per month for an individual or $21 per month for a family to enroll in the incentive program (approximately 5% of the cost of health plan membership). Enrollees can drop the incentive program at any time and on average, 7.5% drop out in a year.
Members of the reward program earn points for a number health behaviors such as receiving preventive care services, visiting a gym, smoking cessation, seeing a nutritionist, and buying healthier food at the grocery store. Our focus is just on receipt of preventive care services. In Table 1, we list the allocation of points for these preventive services. The points earned by receiving preventive care did not change during study period. Points translate into increasing status levels. The default status is Blue. For an individual member, status increases as follows: Bronze (15,000-34,999 points); Silver (35,000-44,999); Gold (≥45,000); and Diamond (3 consecutive years on Gold).
Higher status level translates into increasing discounts on a range of goods and services from approximately 25 commercial partners in South Africa. These include store purchases, movie tickets, local and international flights, car rentals, and hotel booking. For example, the discount for 1 hotel chain was 30% and 50% for Blue and Diamond status, respectively. In 2009, the average annual value of incentives to members of the reward program was approximately $275 across all members and greater than $1500 in the highest Diamond tier.
Enrollees can sign up for the incentive program in several ways: they can sign up when they first join the health plan, or members already with the health plan can sign up with a phone call or download and submit an application form that is available online. The process of accruing points is automated and does not require members to submit any forms. For instance, when a claim for a mammogram is received by the health plan, points are automatically allocated to the patient. Rewards (discount) are either available at the time of the purchase or are paid in a check at the end of the month. During the study period, enrollees could receive the points even if they received the service ahead of what might be recommended by different guidelines. For example, some guidelines recommend a mammogram every 2 years, but if a woman in the incentive program received a mammogram yearly, she would receive the associated points each year.
For each year, we classified whether the health plan enrollee was a member of the reward program as of January 1 of that year. We used an “intention-to-treat” analysis such that a patient who enrolls in a reward program was considered to be in the reward program in all subsequent years even if they unenrolled at some point.
Measuring Receipt of Preventive Care
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