Improved Health Outcomes & Cost Savings:
A Win-Win Proposition

Strong evidence exists for CDSMP/DSMP positively impacting major health outcomes for individuals with diagnoses such as diabetes, arthritis and hypertension, including loss of excess body weight, lower A1C levels, increased physical activity and improved symptom management. There is also evidence for improved communication with doctors, improved medication compliance, and improved confidence filling out medical forms.

Cost research suggests that CDSMP/DSMP leads to a $714 per person savings in emergency department (ED) visits and hospitalization, which yields $364 per person net savings after considering average program costs of $350 per participant. This would amount to a national savings of $3.3 billion if 5% of adults with one or more chronic conditions participated in the intervention.

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Illinois’ Take Charge of Your Health workshops cost only $300 per participant.

Measuring Cost Effectiveness

Kaiser Permanente hospitals and clinics and the Group Health Cooperative of Puget Sound found that, over a 1-year period, CDSMP participants had a mean 0.97-day reduction in hospitalization and averaged 0.2 fewer ED visits. This suggests an estimated savings of about $1,000 per participant in the first year. 

Individual insurers may wish to have a more customized estimate of how Take Charge of Your Health would impact particular enrollees. The Healthcare Cost Savings Estimator Tool, developed by a multidisciplinary team from Texas A&M University and the University of Memphis, can help individual entities estimate savings associated with CDSMP program participation. The tool can calculate the financial savings of rolling out CDSMP in a given population based specifically on ED visits and hospitalization rates. An insurer using the tool may wish to provide their own ED and hospital utilization rates from their own market share to ensure the estimate is as custom as possible.