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

g 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 p
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SOURCE Express Scripts, Inc.
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