NEW YORK, April 28 /PRNewswire/ -- The Guardian Life Insurance Company of America (Guardian) and Destiny Health today announced they will expand their alliance to offer the innovative and affordable consumer-driven Destiny Health Plan to employers in Virginia and Washington, D.C. The companies then plan to expand to the state of Maryland during the summer of 2004. Destiny Health is a subsidiary of Discovery Holdings, the world's largest consumer-driven healthcare company. A launch event was held in Bethesda, Maryland on April 27 with more than 300 insurance professionals in attendance.
The move follows six months after the signing of the original joint venture agreement between the two companies. Until now, Guardian's sale of The Destiny Health Plan(TM) was limited to employers in Illinois. The decision to expand into the Mid-Atlantic region reflects the rapidly growing success of the initial venture, as well as an increased interest in a consumer-driven healthcare concept that enables employers to:
-- Offset escalating health insurance premiums;
-- Give employees greater control and personal choice in the healthcare
they receive;
-- Provide value to employees, whether they are sick or well in a given
year;
-- Provide employees with an integrated Health Reimbursement Arrangement
(HRA) or Health Savings Account (HSA); and
-- Offer a wellness program that motivates employees to lead healthier
lifestyles.
According to Richard A. White, Senior Vice President, Guardian, Destiny Health has the most experience balancing comprehensive protection with personal health incentives and delivers on its promises by encouraging policyholders to become more prudent consumers of healthcare.
"The Comprehensive Consumer-Driven Healthcare(TM) model designed by Destiny Health provides comprehensive coverage for uncontrollable costs, like hospitalizations and medications for chronic diseases, and includes at its core, HSAs or HRAs as consumer-controlled savings accounts for discretionary and less costly services," he said. "With unspent money rolling over year to year, employees are motivated to adopt healthier lifestyles and to spend their healthcare dollars with greater care."
White noted that in addition to offering financial motivation, Destiny Health takes the important added step of empowering and encouraging members to make wise decisions.
"The Destiny Health Plan offers real-time information through our Customer Response Unit and an interactive website to enable members to make wise choices," he said. "The company goes a big step further through The Destiny Health Vitality Program to offer members rewards, including vacation packages and airline miles, for healthy activities, such as exercising, being tobacco- free and even taking a course in First Aid."
Scott Spiker, president and CEO of Oak Brook, Illinois-based Destiny Health, said his firm's sister company, Discovery Health, has been offering consumer-driven health plans for some 12 years to more than 1.5 million members worldwide. Destiny Health has offered the plan in the U.S. since 2000, and is currently growing by thousands of new members each month.
"The reason for this accelerating growth is simple: We are motivating employees to change their behaviors, which in turn lowers costs and makes possible premium increases that are well below the industry average," Spiker said. He cited a 2003 survey by Chicago-based Analytical Directions showing that 47% of plan members report asking their pharmacist for lower-cost prescriptions; 41% say they are taking better care of themselves; and 37% cited improvements in their preventive healthcare regimen.
These findings are supported by national studies showing that when employees become members of a consumer-driven health plan, generic drug usage rises and emergency room visits drop, Spiker said.
"U.S. consumers are intelligent, especially when they are spending their own money," Spiker said. "And it will be these consumers, armed with products like The Destiny Health Plan, who ultimately will rein in healthcare inflation."
About The Guardian Life Insurance Company of America
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2003, Guardian and its subsidiaries had $37.2 billion in assets. With more than 5,000 employees, over 2,800 financial representatives and nearly 100 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k), financial products and trust services. More information on Guardian can be obtained at http://www.guardianlife.com/ .
About Destiny Health
Destiny Health motivates active participation in healthcare and rewards the member behavior change necessary for a healthier lifestyle. For employers, Destiny Health's Comprehensive Consumer-Driven Healthcare(TM) model is proven to control rising healthcare costs through lower premium increases. The Destiny Health Plan is a health insurance solution for those who seek greater value, superior choice, outstanding service and comprehensive coverage. This consumer-focused strategy is modeled after Destiny Health's sister company, Discovery Health, an international life and health insurance company that has successfully enrolled over 1.5 million members in its medical plan since 1992. Combined, Destiny Health and Discovery Health are the largest providers of consumer-driven healthcare in the world. For more information visit http://www.destinyhealth.com/ .
Destiny HealthCONTACT: Eileen Rochford for Destiny Health, +1-773-463-2480, or cellphone, +1-312-953-3305
