Navigation Links
Lowe's Leads First Wave of Companies Partnering With Express Scripts to Apply Behavioral Economics to Healthcare
Date:3/17/2009

Innovative Model Drives Millions of Dollars in Savings for Employers and Patients

ST. LOUIS, March 18 /PRNewswire-FirstCall/ -- Lowe's, the second-largest home improvement retailer in the world, is among more than two dozen companies on track to save millions in 2009 through a pilot program with pharmacy benefit manager Express Scripts (Nasdaq: ESRX). One of the first marketplace innovations to apply behavioral economics principles to enhance health care, the Select Home Delivery program provides direct savings to both companies and their employees by optimizing the use of home delivery for prescription medications.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080827/EXPRESSSCRIPTSLOGO)

Lowe's was one of the first companies to partner with Express Scripts on offering its associates Select Home Delivery, which does not require mandatory participation or alter copayments. Since Lowe's introduced the program, their employees' use of home delivery has more than doubled.

"Lowe's and our associates could share in millions of dollars of savings each year if we all switched our maintenance medications to home delivery," said Bob Ihrie, Lowe's senior vice president of employee rewards and services. "From behavioral economics, we now know that the small effort required to change behavior looms large psychologically, which causes people to procrastinate and put off decisions. By partnering with Express Scripts, we have been extremely effective in turning employee procrastination into an ally for desired behavior."

In the midst of growing economic challenges for consumers and businesses, the program has garnered strong interest and is being used by the first wave of companies, with many more preparing to introduce it this year. Early estimates are that some participating companies and their employees adopting Select Home Delivery in 2009 could reach up to $3 million in savings.

Behavioral Economics Principles at the Heart of Product Innovation

The Select Home Delivery concept originated a year ago during discussion of 401(k) enrollment research findings, during the first advisory board meeting of the Express Scripts Center for Cost-Effective Consumerism. Reflecting its strong potential as a breakthrough offering, the product went through accelerated development and client enrollment to roll out in the marketplace in less than a year.

"Opt-out and active decision programs for 401(k) enrollment dramatically improved low employee participation rates. We wanted to explore whether these tools could also solve healthcare challenges," said David Laibson, PhD, Robert I. Goldman Professor of Economics at Harvard University and member of the Center's advisory board. "This is one of the first marketplace adaptations that successfully applies behavioral economics to improve health care."

Express Scripts works with the Center's advisory board to advance Consumerology, an innovative approach to helping consumers make better and more cost-effective healthcare decisions. It was founded on key principles of behavioral economics to understand the way people make decisions and provide insights about how to motivate positive changes.

Ihrie and Bob Nease, PhD, chief scientist at Express Scripts, announced preliminary results from Lowe's pilot program at a recent National Business Group on Health conference on lowering costs while improving the quality of healthcare.

"Until now, increasing the use of home delivery meant either wooing members with financial incentives or pushing them with mandatory programs. Select Home Delivery breaks ground by using a key principle of behavioral economics to voluntarily 'nudge' members to use the Express Scripts Pharmacy," said Nease. "Ultimately, anyone wishing to opt out may do so. This approach is surprisingly powerful, as evidenced by the positive response from members and plan sponsors."

The program outperforms other approaches that either impose financial penalties for using retail pharmacies or rely on education alone to increase use of home delivery.

Translating Proven Insights into Healthcare Solutions

Express Scripts is working with many clients to apply its signature approach to drive better health outcomes at lower cost.

"Express Scripts' behavior-centric approach continues to enable better health and value for plan sponsors and members," said Larry Zarin, at Express Scripts. "Now more than ever, it is critical to deliver solutions that reduce wasteful spending for businesses working to preserve benefits and jobs, as well as policymakers seeking to reform health care for all Americans."

Importing proven insights from non-healthcare settings has been key. For example, Select Home Delivery is in large part based on research originally funded by the National Institute on Aging. Researchers James Choi (Assistant Professor at Yale University), David Laibson (Robert I. Goldman Professor of Economics at Harvard University), and Brigitte Madrian (Professor of Public Policy and Corporate Management in the Aetna Chair at Harvard University) collaborated on the project, which showed that opt-out programs were highly effective in increasing enrollment in 401(k) programs.

Express Scripts established the Center for Cost-Effective Consumerism, which involves leading scientists from top universities working closely with its research and product development experts, to accelerate development of an advanced understanding of human behavior and of what strategies work best to motivate consumers to make optimal healthcare decisions. For more information on the Center, visit http://www.consumerology.org.

About Lowe's

With fiscal year 2008 sales of $48.2 billion, Lowe's Companies, Inc. is a FORTUNE(R) 50 company that serves approximately 14 million customers a week at more than 1,650 home improvement stores in the United States and Canada. Founded in 1946 and based in Mooresville, N.C., Lowe's is the second-largest home improvement retailer in the world. For more information, visit http://www.lowes.com.

About Express Scripts

Express Scripts, Inc. is one of the largest pharmacy benefit management (PBM) companies in North America, providing PBM services to millions of consumers. Express Scripts serves thousands of client groups, including managed-care organizations, insurance carriers, third-party administrators, employers and union-sponsored benefit plans. Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com.

    Media Contact: Maria Palumbo
                   314.684.6438
                   MPalumbo@express-scripts.com


'/>"/>
SOURCE Express Scripts, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Many Seniors Not Selecting Lowest Cost Medicare Drug Plans
2. New Web Site Will Help Consumers Find Lowest Local Prices for Prescription Drugs
3. Health Care Spending in U.S. Grew at Lowest Rate in a Decade
4. Gay and bisexual African-American men have the lowest use of prostate testing
5. New Research Estimates 1500 Lives Could Be Saved Annually if the Lowest Performing Hospitals for Coronary Artery Bypass Graft Surgery Performed as Well as Top-ranking Hospitals
6. Flash Speed. Lowest Dose.
7. Lung Cancer Still Lowest in Federal Funding
8. U.S. Abortion Rate Falls to Lowest Level in Decades
9. Smoking rate among New York City teens was lowest on record in 2007
10. Recession leads 1 in 3 Smokers to cut Down or Quit
11. MPM Capital Leads Investment in Proteon Therapeutics
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... Canada (PRWEB) , ... June 25, 2016 , ... Conventional ... pursuit of success. In terms of the latter, setting the bar too high can ... risk more than just slow progress toward their goal. , Research from ...
(Date:6/24/2016)... ... ... was in a crisis. Her son James, eight, was out of control. Prone to extreme ... “When something upset him, he couldn’t control his emotions,” remembers Marcy. “If there was ... other children and say he was going to kill them. If we were driving ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... Comfort Keepers® ... American Cancer Society and the Road To Recovery® program to drive cancer patients to ... and other adults to ensure the highest quality of life and ongoing independence. ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... to recognize Dr. Barry M. Weintraub as a prominent plastic surgeon and the ... in the world, and the most handsome men, look naturally attractive. Plastic surgery ...
(Date:6/24/2016)... Washington, D.C. (PRWEB) , ... June 24, 2016 , ... ... Pro-Am Heroes Golf Classic Tournament held on June 20th at the Woodmont Country ... local charity, Luke’s Wings, an organization dedicated to helping service members that have been ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... 23, 2016 Bracket , a leading clinical ... generation clinical outcomes platform, Bracket eCOA (SM) 6.0, at ... 26 – 30, 2016 in Philadelphia , ... Outcome Assessment product of its kind to fully integrate with ... Bracket eCOA 6.0 is a flexible platform for electronic clinical ...
(Date:6/23/2016)... and INDIANAPOLIS , June ... receiving a Lilly Diabetes Tomorrow,s Leaders Scholarship is any ... scholarship winners, announced today online at www.diabetesscholars.org ... type 1 diabetes stand in the way of academic ... supported the Foundation,s scholarship program since 2012, and continues ...
(Date:6/23/2016)... LONDON , June 23, 2016 ... environments  Oticon , industry leaders in ... the launch of Oticon Opn ™, the world,s ... world of possibilities for IoT devices.      ... Opn, Oticon introduces a number of ,world firsts,: ...
Breaking Medicine Technology: