REWARDS FOR HEALTHY LIFESTYLES

One of the pioneers of consumer-driven health plans, Destiny Health, headquartered in Chicago, expanded its offering to the individual market in fall 2006. Destiny administers both the health plan and savings account and offers deductibles ranging from $2,000 to $5,000. Once the deductible is met, members may choose between 100% or 80% coinsurance. Office visits may apply against the deductible or members may opt for a $400-a-year benefit for the visits. Drugs require a copayment, which does not count toward the deductible.

In addition to the standard HSA product, Destiny has developed The Destiny Health Vitality Program that rewards members with vitality "bucks" for healthy activities and choices, such as enrolling in a smoking cessation class. The more "bucks" earned, the higher the Vitality Status which enables members to purchase airline miles, hotel stays and merchandise. In addition, a higher status earns members discounts on their premiums up to 36%. Vitality program members also are eligible for lower membership rates at Destiny's health club partners.

Like many of the other insurers in the individual market, Destiny's products are targeting individuals no longer covered under their employer health plans and the uninsured.

MUCH MORE COVERAGE

"Plans for individuals basically had low premiums and little coverage with a large out-of-pocket exposure," says Cary Badger, vice president, market development for Regence headquartered in Portland. "Now we have redesigned plans with less exposure; they may be more expensive than limited plans but they provide much more value. Members want to have day-to-day routine care."