Principal Applies Modeling To Control Health Costs

It uses predictive modeling techniques to forecast future medical risks and costs. Then it combines this data with additional statistical reports to place plan members in the medical management program that can offer the most benefit.

This effort has helped increase referral volume to disease and care management programs by as much as 29%, the company says.

“The Principal is catching conditions earlier and initiating contact with members to help members manage their conditions and reduce the overall claims impact,” says Richmond.

In addition, the Principal gives employers an annual report on cost and clinical utilization trends that includes recommendations designed to improve their plans’ performance.

The Principal’s own research shows that three-fourths of American workers would accept health screenings if offered by their employer. Of employees with access to screenings, 84% participated, and of those, 47% eat healthier and 45% exercise more, the company found.