Prime shows how carve-in wins for clients—it’s better than carve-out.
June 1, 2020
For the first time, Prime’s puts its carve-in analytics through a rigorous scientific peer review. It’s clear. This published, peer reviewed study showed Regence and Prime carve-in pharmacy was associated with lowered overall health care costs.
Carve-out is out. This study used medical data and followed members for two years. The final cohorts consisted of 205,835 carve-in and 125,555 carve-out members.
Compared to the carve out members, members with carve-in benefits had an average:
- $148 lower total medical cost PMPY
- 15% lower odds of hospitalization
- 7% lower odds of ED visit
In 5 of 7 chronic conditions, members with carve-in benefits had significant lower costs and medical event odds as shown here:
- 12%-17% lower medical costs
- 22%-36% lower odds of hospitalization
- 16%-20% lower odds of ED visit
The study findings indicate that integrated, carve-in pharmacy and medical benefits are associated with lower medical costs, fewer hospitalizations, and fewer ED visits.
This study, co-authored by researchers at Prime and Regence Health Plans, is to our knowledge, the only scientifically peer-reviewed study published on the subject. The authors received a platinum award for this research, which is published in the peer-reviewed Journal of Managed Care & Specialty Pharmacy (JMCP).
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