Medical startup, state partner in pilot study to curb health care costs [The Oklahoman, Oklahoma City] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 18, 2013 Newswires
Share
Share
Tweet
Email

Medical startup, state partner in pilot study to curb health care costs [The Oklahoman, Oklahoma City]

Paula Burkes, The Oklahoman, Oklahoma City
By Paula Burkes, The Oklahoman, Oklahoma City
McClatchy-Tribune Information Services

Aug. 18--Washington state obstetrician-gynecologist Jenny Vickrey used to worry about whether her patients understood and remembered everything she told them. There can be multiple reasons, and treatment options, for the symptoms patients commonly have, she said.

But these days, Vickrey said she's more confident about her patients' grasp of their conditions and adherence to treatment. That's because most, she said, are using an Oklahoma Internet-based, patented wellness product that -- based on her diagnoses and best medical practices -- educates them about, and tests them on, their health.

"I don't know if it's because I'm asking them to, or for a little more cash," Vickrey said.

Patients who use the product, MedEncentive, get a portion of their co-pays waived, while participating doctors, who are rated by patients based on their adherence to recommended care, are compensated an additional $15 per office visit.

"Whichever, I see it as a tool that's been a blessing for me and my patients," Vickrey said.

Pilot program

An eight-year-old startup, MedEncentive finally may have received its breakthrough this month, with the announcement of a $3.8 million, three-year study that will begin Jan. 1 and involve 15,000 active Oklahoma state employees and their families on the HealthChoice insurance plan. If the product pays for itself, administrators say MedEncentive will be offered to the entire 125,000 active employees on the plan, the most popular among state workers.

The announcement comes on the heels of a study by Oklahoma Watch, published Aug. 6 in The Oklahoman, which found a state employee's family of four receives an annual allowance of some $19,717 for health insurance under state statutes. While proponents believe the allowance empowers the state to offer compensation packages commensurate to the private sector, opponents feel the benefit -- which covers 100 percent or more of workers' premiums -- is too generous and doesn't provide adequate incentives for workers to keep their health care costs as low as possible.

Enter MedEncentive, whose executives say their product leads to better health care, better health and, consequently, cost-containment.

Company founder and CEO Jeff Greene said what's unique about the MedEncentive Program is how it uses payer-sponsored financial incentives to reward both doctors and patients for adhering to evidence-based care and healthy behaviors, provided they agree to allow the other party to confirm their adherence or, in the doctors' cases, why they deviated from recommended care.

"Unlike any other solution, this process of doctor-patient mutual accountability triangulates the interest of the payer, consumer and provider," Greene said. "Most importantly, patients get well, and stay out of the hospital, while doctors practice better medicine," Greene said.

MedEncentive has some 7,000 patients participating in the program from the city of Yukon to New Jersey, Pennsylvania and Washington, said Jim Dempster, national director of business development.

Doctor's orders

Three of the country's top 10 reinsurers -- Sun Life Financial, New York-based AIG and IHC Risk Solutions -- have agreed to offer discounts on stop-loss insurance to companies who offer self-funded health plans. But Greene said MedEncentive's goal is to integrate its product into every segment of health plans -- not just self-insured health plans, but fully-insured plans and government-sponsored plans.

"We're hoping more insurance companies and employers will take a look at our tool, after we put it to the test in the Oklahoma pilot study," Dempster said.

Forty-one school districts, state agencies and local governments across seven counties -- including Oklahoma City Public Schools, the agriculture and tourism departments, Canadian County and the City of Waurika -- have been selected to form the intervention group, Dempster said. The three-year pilot, he said, will involve measuring clinical and economic outcomes of participants against the rest of the HealthChoice population, based on matched ages, genders, locations and other demographics.

MedEncentive expects significant success. "The key is holding people accountable," Dempster said. "People don't always understand their options, and doctors don't always do what they should."

He said studies show doctors interrupt patients after the first 23 seconds, patients understand only half of what their doctor says and only about one-third of patients nationwide fill and take their prescribed medications.

"Take diabetes," Dempster said. "We know how to manage it, but it's still going up. We want to educate and motivate people to be an active participant in their health."

Educating people about managing their own health is the single most important predictor of their well-being and life expectancy, he said.

Concept study

Douglas Bradham, a professor and health economist with the University of Kansas School of Medicine at Wichita, said studies conducted there show MedEncentive works. In respective analysis of data sets involving 527 employees of the City of Duncan, the expected savings for each dollar invested by the employer was $6.94 to $11.02, averaging across five years, Bradham said.

"Savings were primarily seen in hospitalization expenses, including reduced lengths of stay," he said. Moreover, a similar claims study, involving four years of participation by 1,021 patients of the Wichita Clinic, showed similar rates of return, he said.

Frank Wilson, administrator of the employees group insurance division of the state Office of Management and Enterprise Services, said he's "anxious to see if MedEncentive helps move the needle" in cost-containment by encouraging workers to have relationships with their primary care doctors and avoid expensive visits to the emergency room and specialists.

Following nationwide trends, claims costs for active state employees on HealthChoice, the most popular health insurance plan, have increased by $280.2 million -- or 87 percent -- over the past 10 years, Wilson said.

He said the anticipated costs of the three-year pilot study with MedEncentive is $1.8 million in administrative fees to MedEncentive, or $3 per member per month; $1.9 million in estimated financial incentives awarded to employees and physicians, or $15 each per visit; and $100,000 in implementation fees to Hewlett-Packard, the state's third-party administrator.

"The goal is for the program to more than pay for itself," Wilson said.

Bipartisan support

The MedEncentive pilot was initiated by House Bill 1062, authored by Sen. Josh Brecheen, R-Atoka, and Rep. Dustin Roberts, R-Durant, and passed during the 2011 legislative session. It had overwhelming bipartisan support, with a unanimous vote by senators and only nine dissenting votes in the house.

"If it at least stagnates the cost, Oklahoma will be a big winner," Brecheen said.

"Those dollars are needed to go into classes, bridges and prisons," he said.

An emergency room doctor for Integris Health, State Rep. Doug Cox, R-Grove, said he supports the initiative, first to improve patient care and second, to balance the state budget.

"If we can standardize care for patients, especially those with common illnesses, and get them the right treatment early," Cox said, "We can prevent many ER visits and hospital readmissions, which will save patients money and insurance companies money."

Emergency room care is fragmented and the most expensive care, he said. "No one needs to go there, unless they're having a heart attack at midnight."

___

(c)2013 The Oklahoman

Visit The Oklahoman at www.newsok.com

Distributed by MCT Information Services

Wordcount:  1170

Advisor News

  • Study finds more households move investable assets across firms
  • Could workplace benefits help solve America’s long-term care gap?
  • The best way to use a tax refund? Create a holistic plan
  • CFP Board appoints K. Dane Snowden as CEO
  • TIAA unveils ‘policy roadmap’ to boost retirement readiness
More Advisor News

Annuity News

  • $80k surrender charge at stake as Navy vet, Ameritas do battle in court
  • Sammons Institutional Group® Launches Summit LadderedSM
  • Protective Expands Life & Annuity Distribution with Alfa Insurance
  • Annuities: A key tool in battling inflation
  • Pinnacle Financial Services Launches New Agent Website, Elevating the Digital Experience for Independent Agents Nationwide
More Annuity News

Health/Employee Benefits News

  • National Health Insurance Service Ilsan Hospital Describes Findings in Gastric Cancer (Incidence and risk factors for symptomatic gallstone disease after gastrectomy for gastric cancer: a nationwide population-based study): Oncology – Gastric Cancer
  • Reports from Stanford University School of Medicine Highlight Recent Findings in Mental Health Diseases and Conditions (PERSPECTIVE: Self-Funded Group Health Plans: A Public Mental Health Threat to Employees?): Mental Health Diseases and Conditions
  • Health insurance cost increases predicted to cut millions from needed protection
  • Department of Labor proposes pharmacy benefit manager fee disclosure rule
  • WALKINSHAW, DUCKWORTH IMPLORE TRUMP ADMINISTRATION TO EXPAND IVF COVERAGE FOR THE MILLIONS OF HARDWORKING AMERICANS ENROLLED IN FEHB PLANS
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Etiqa General Insurance Berhad
  • Life insurance application activity hits record growth in 2025, MIB reports
  • AM Best Revises Outlooks to Positive for Well Link Life Insurance Company Limited
  • Investors holding $130M in PHL benefits slam liquidation, seek to intervene
  • Elevance making difficult decisions amid healthcare minefield
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • Financial Independence Group Marks 50 Years of Growth, Innovation, and Advisor Support
  • Buckner Insurance Names Greg Taylor President of Idaho
  • ePIC Services Company and WebPrez Announce Exclusive Strategic Relationship; Carter Wilcoxson Appointed President of WebPrez
  • Agent Review Announces Major AI & AIO Platform Enhancements for Consumer Trust and Agent Discovery
  • Prosperity Life Group® Names Industry Veteran Mark Williams VP, National Accounts
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet