Case Study: How Molina Healthcare Drives Impact in Four Ways With Supplemental Benefits

In a study conducted by Molina Healthcare , the impact of supplemental meal benefits for Medicare Advantage members was examined through a 12-month study. This post summarizes the key findings of the study, focusing on four areas of impact: medical costs, health outcomes, retention, and quality improvement. 

Study Design and Methodology:

Molina’s actuaries designed the study to compare medical expenses, health impact, quality, and retention impact for participants in the meal program compared to a control group of similar members not using the meal plan over a 12-month period. Propensity score matching was employed to ensure the reliability of the findings.

Key Findings:

• Reduction in Medical Costs: The study revealed an average annual cost savings of $1,381 per participating member. This was primarily attributed to reductions in emergency department visits and inpatient activities.
• Increased Member Retention: Participants in the meal plan demonstrated 11% higher retention rates between 2022 and 2023. Survey data further corroborated their satisfaction, with high percentages reporting improved health and a sense of being more supported by their health plan.
• Health impact: Significant correlations were observed between the reduction in A1c values and the number of meals ordered, particularly for members with diabetes.   
• Quality Measures: 93% of meal plan participants said they feel more supported by their health plan because of their meals benefit.

Conclusions and Implications:

The Molina case study suggests that a novel benefit design that does not include prior authorization can have meaningful impact in four key areas: medical expenses, health outcomes, member retention, and plan quality scores. The findings indicate both significant cost savings, improved health outcomes and increased member satisfaction. These results are timely given the current guidance from CMS that require impact tracking for supplemental benefits in 2025 and beyond. 

Authors and Acknowledgements:

The study was reviewed and analyzed by the Molina Actuarial Staff and Mark Olson, FSA, MAAA, FCA, chief healthcare actuary of Towers Watson, retired.

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