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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

rinciple 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
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SOURCE Express Scripts, Inc.
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