Healthier Employees = Lower Healthcare Costs

Healthier Employees = Lower Healthcare Costs

Guardian, in Alliance With Destiny Health, Offers New Tools to Help Employers Track Health and Resulting Cost Reductions

OAK BROOK, Ill., Sept. 13 /PRNewswire/ -- For the first time, employers have the ability to see how employees are progressing on the health spectrum, which if managed effectively can directly impact their health insurance premiums. The Guardian Life Insurance Company of America (Guardian) and Destiny Health today announced significant new changes to The Destiny Health Vitality Program(TM) including an integrated Health Risk Assessment, which was developed in conjunction with the University of Michigan Health Management Research Center (HMRC), that provides both members and employers information to focus on improving health and wellness.

The Destiny Health Vitality Program is modeled after the market-leading South African Vitality Program of Destiny's parent, Discovery Health. The enhancements to the Vitality program come on the heels of an actuarial study by Milliman USA of Discovery's South African experience which confirmed that participation in the South African Vitality program is associated with lower health insurance claims. Specifically the study found that singles and couples who participate in Vitality have lower insured claim costs, even though Vitality participants are more likely to have chronic conditions than non-Vitality participants of the same age. In addition, the study found that Vitality members more pro-actively manage their healthcare budgets, contributing more to their medical savings accounts than members who do not participate in Vitality. Finally, based on substantially lower terminations rates for Vitality participants, the study indicated that Vitality participants are more likely to continue their health insurance coverage.

"This study is a terrific validation of what we believed all along. Given the similarities between Vitality in South Africa and the U.S. and the fact that both countries have private market systems with individual, small group and large group coverage, we have every reason to expect similar results," said Destiny Health CEO J. Scott Spiker. "And we are building on the momentum provided by this confirmation by enhancing Vitality even further, with a greater focus on measurement, reporting and continuous improvement to offer our members new ways to control their healthcare costs and improve their health. We want to provide insureds of all ages and health statuses the tools and incentives to pro-actively improve their health."

"Intuitively, we all know that by effectively managing one's health, we can have a tremendous impact on controlling health care costs," stated Rick Viesta, VP, Group Medical, The Guardian. "At the same time, however, there generally exists a disparity between our perceptions as to how healthy we are and our actual health status. This Health Risk Assessment adds a new dimension to our health information support tools by helping members better understand and focus on their own personal health and wellness goals."

Broadening the scope and impact of the Vitality program even further is yet another significant enhancement, brought by a new partnership with Life Time Fitness, a national operator of distinctive and large four-in-one sports and athletics, professional fitness, family recreation and resort/spa centers. Depending upon their Vitality Status, members will be eligible to earn substantial rebates on their monthly membership dues, along with access to a wealth of health and wellness related services, with regular visits to a Life Time Fitness center.

Destiny Health Plan members can also earn Vitality Bucks through activities such as preventive medical care, public fitness events and lifestyle changes (i.e., stopping smoking, reducing BMI). As members accumulate more Vitality Bucks, they move up in status level from Bronze, to Silver, to Gold, to Platinum, thereby earning additional perks and benefits.

According to Spiker, "We think our members will find the 2006 Destiny Health Vitality Program easier to use, richer in rewards, and enhanced with new partners that bring the program to a whole new level."

Broader Continuum of Prescription Drug Options

In addition, recognizing that prescription drug coverage is a critical component to any health plan design and something that should be as customizable and flexible as possible, Guardian, in alliance with Destiny Health, has expanded its prescription drug coverage options. New additions include a Preventive Medication Rider for members covered under a Health Savings Account.

The Preventive Medication Rider utilizes the Health Savings Account Preventive Care Safe Harbor to provide first dollar coverage for the medications taken to treat 10 common conditions including diabetes, asthma and high cholesterol. This removes a significant concern regarding the benefits of typical high deductible health plans for members with chronic health conditions.

Additionally, a new option is being made available to provide first dollar coverage for all medications for members electing a health reimbursement arrangement. These enhanced options mean that employer groups can more closely match their coverage with their employees needs.

About Guardian

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, 2004, Guardian and its subsidiaries had $39.5 billion in assets. With more than 5,000 employees and 2,900 financial representatives, as well as over 80 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 about Guardian can be obtained at: http://www.guardianlife.com/ .

About Destiny Health

Destiny Health's innovative consumer-driven 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 healthcare and rewards member behavior change necessary for a healthier lifestyle. 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 1.8 million members in its medical plan since 1992. Combined, Destiny Health and Discovery are the largest providers of consumer-driven healthcare in the world. For more information visit http://www.destinyhealth.com/ . The Destiny Health Plan is currently marketed by The Guardian Life Insurance Company of America in Illinois, Virginia, Washington, D.C. and Maryland. It is also available in Massachusetts through a partnership with Tufts Health Plans and in Wisconsin through affiliated insurance brokers.

Source: Destiny Health

CONTACT: Eileen Rochford for Destiny Health, +1-773-463-2480 (office),
+1-312-953-3305 (cell phone), eileenr@theharbingergroup.com

Web site: http://www.destinyhealth.com/
http://www.guardianlife.com/

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