Consumer-Directed Wellness Expert Hails President's Health Care Recommendations.

Calls for Public Education Campaign on What it Takes for Consumer-Directed Health Care to Succeed

CHICAGO -- Health-care recommendations outlined in President Bush's State-of-the-Union address and expanded upon in documents issued by the White House represent a giant step towards addressing the nation's health-care cost crisis, but lingering questions remain as to what actually is required to make private health insurance more affordable and increase the number of Americans with health insurance.

Arthur C. Carlos, president and CEO of Destiny Health, said the President's plan to reform the tax code corrects a long-standing inequity.

"Up until now Americans who purchased health insurance privately were not allowed the same tax deductions as those insured through employers," he said. "That was unfair as well as unwise, and the President's plan to allow a standard deduction for health insurance regardless of how it is acquired will have the important effect of making coverage affordable to many of the 47 million Americans who currently are uninsured."

Carlos also singled out the President's declaration that "private health care is the best way to meet their (Americans') needs," and his call to remember "that the best health care decisions are made not by government or insurance companies, but by patients and their doctors."

"We strongly agree with the President on these points and are happy that he has directed Federal agencies to share information with beneficiaries about prices paid to health care providers and about the quality of services they provide," Carlos said. "The President is exactly right when he says that increased transparency about prices and quality will help bring more competition to health care and restrain its rising costs."

Stuart Slutzky, vice president of product development of Destiny Health, said that while the administration is correct in supporting Health Savings Accounts (HSA) as a mechanism for motivating Americans to save for their future health care needs, providing incentives for prevention, wellness, and fitness are of even greater importance to improve lifestyles and create more affordable health care coverage.

"The truth is the simple combination of a high-deductible plan and a HSA is not sufficient to empower consumers to make the choices they are being asked to make," Slutzky said. "Knowledge tools and wellness incentives also are required and have been shown to be of significant help in prompting members of enriched plans to save money and adopt healthier lifestyles. Specifically, a study conducted by Aon Consulting showed that 80 percent of members of one such plan had started an exercise or nutrition plan in the prior 12 months and increased their compliance with commonly accepted preventive care recommendations by up to 40%. Additionally, members of this plan with chronic illnesses such as hypertension had reduced their total health care costs by over 20% due to the incentives provided to them to improve their lifestyles."

Slutzky noted that much of the opposition to the President's goal of further expanding HSAs traces to the mistaken notion that consumer-directed health care and the high-deductible/HSA combination are synonymous.

"We believe HSA proponents would do well to help educate consumers that wellness-based coverage options are available to both employer groups and individuals that truly live up to the promise of empowering wise decisions and rewarding the adoption of healthy lifestyle habits."

Carlos and Slutzky are available to expand on these points and comment on any and all of the President's health-care related proposals. To contact them, please call: Eileen Rochford, 773-463-2480.

About Destiny Health

Destiny Health's innovative consumer-directed health plan is designed to make people healthier and enhance and protect their lives, by balancing comprehensive health insurance coverage with incentives that motivate active participation in health care and reward healthy behaviors.

Destiny Health's consumer-focused strategy is modeled after Destiny Health's parent company, Discovery, an international life and health insurance company that has successfully enrolled over 2 million members in its medical plan since 1992. Combined, Destiny Health and Discovery are the largest providers of consumer-directed health care in the world.

Destiny Health has forged partnerships with some of the most respected and recognized names in the health and wellness field to help extend the reach of its consumer-directed health plan. Destiny Health Plan members enjoy robust perks through partnerships with Life Time Fitness, Curves and other regional and local fitness facilities. To learn more, visit http://www.destinyhealth.com.