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October 27, 2003
Guardian and Destiny Health Launch Joint Venture To Deliver Consumer-Driven Healthcare Plans
Alliance supports projections of rapid growth for the consumer-driven option
NEW YORK, NY, October 27, 2003 - The Guardian Life Insurance Company of America and Destiny Health announced the signing of a joint venture agreement to offer an affordable consumer-driven health insurance plan (CDHP) to employer groups in selected markets throughout the United States. Guardian and Destiny Health launched the joint venture officially on October 16th, with a presentation and reception for over 500 Illinois brokers-the first market where the two companies will sell business as an alliance.
The alliance supports projections by Forrester Research, Inc, that CDHPs will capture a 24 percent or greater share of the health insurance market within six years - a 7,500% percent gain over current levels of just 0.3%.
The joint venture between Destiny Health and Guardian, the nation's fourth-largest mutual life insurer, comes as employers continue to be buffeted by double-digit increases in premiums for traditional health insurance plans. Employees have been shouldering an increasing share of this burden through higher deductibles and co-pays, as well through reduced benefits. Meanwhile, federal agencies report that the number of Americans without any kind of health coverage has risen to 43.6 million.
According to Richard A. White, senior vice president, Group Insurance, Guardian, the plan to be made available through the joint venture with Destiny Health, confronts these issues by encouraging policyholders themselves to get engaged in the challenge of cutting healthcare costs. "The Comprehensive Consumer-Driven Healthcare TM model designed by Destiny Health provides comprehensive coverage for uncontrollable costs, like hospitalizations and medications for chronic diseases, but also creates consumer-controlled savings accounts for discretionary and less costly services, with unspent money rolling over year to year," White said. "Real-time information is available through our Customer Response Unit and an interactive website that enables members to make wise choices; and rewards, including weekend getaways and even airline miles, can be earned by losing weight, lowering your cholesterol or taking a course in First Aid. " He added that "with this kind of creative approach, it is no surprise that consumer-driven healthcare is gaining recognition among employers as a way of gaining control over their healthcare costs while strengthening their relationships with employees through better benefits."
Guardian chose Destiny Health as its partner, White said, "because of its proven, Comprehensive Consumer-driven Healthcare model, which is unique to the industry and has shown the ability to control healthcare costs while delivering an outstanding level of insurance coverage."
Ken Linde, president and CEO of Oak Brook, Illinois-based Destiny Health, said the new-generation CDHP model was developed by Destiny Health's parent company, Discovery Health, which has been offering the plan for more than a decade to a current total of more than 1.6 million members in the US and South Africa. Destiny Health has offered the plan in the U.S. since 2000, but until now it has only been available in select markets.
"We are delivering on the promise of delivering premium increases that are well below the industry average," Linde said. "More important, the plan is having great success in fostering wiser healthcare spending habits and healthier lifestyles. For example, a recent study by an independent research firm showed that while 79% of our members reported starting an exercise or nutrition program within the past 12 months, less than a third of members of other health plans could say the same. "
Linde said Guardian's strong national brand, extensive distribution system and established financial presence create an "extraordinary opportunity" to deliver the Destiny Health consumer-driven health plan on a much larger scale. "While each of us brings individual strengths to this partnership, we are equally committed to the core value of providing exceptional customer service," he said.
About Guardian The Guardian Life Insurance Company of America (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2002, Guardian and its subsidiaries had $34.1 billion in assets. Founded in 1860, Guardian is listed among Fortune magazine's top 300 businesses-and in 2003 was ranked once again as one of the top 10 most admired life and health companies in Fortune's "America's Most Admired Companies" list. With 5,500 employees, over 2,700 financial representatives and 93 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k), mutual fund and annuity investment products, and trust services. More information on Guardian can be obtained at www.glic.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 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 parent company, Discovery, an international life and health insurance company based in South Africa that has successfully enrolled over 1.5 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 www.destinyhealth.com.
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