SPECIAL TO: BenefitsPro DATE: September 30, 2011 WORD COUNT: 1,235

DRAFT Mobile Apps are Smart Choice: Just What Doctor Ordered for Health-Conscious Employers Seeking Cure to Bottom-Line Woes By Robert S. Oscar, R.Ph., CEO of RxEOB Pick up the phone chances are its a smart one. Some 35 percent of all Americans own a smartphone,1 and one-quarter of all those who use these mobile communication devices search the Internet for purchasing anything from a latte to blue jeans.2 Whats more, some 175 million Americans tapped into these sleek, fashionable phones last year to find some of the best medication bargains on the market today, from the convenience of their homes, while at play or at work long after they left a doctors office.3 Imagine researching drug prices, refilling prescriptions, checking order statuses or finding the nearest locations to pick up medications from the palm of a hand. Now believe it. Today, smartphones are revolutionizing the way healthcare decisions are made, and there is no better time than the present: new reports show that employers are coughing up 12 percent of their total spending for health benefits and hurting their businesses where they are most
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Smith, Aaron; 35% of American Adults Own a Smartphone; Pew Research Center; July 11, 2011; http://pewresearch.org/pubs/2054/smartphone-ownership-demographics-iphone-blackberry-android; Accessed Sept. 29, 2011. 2 Smartphone Shopping Spree? New Study Finds Half of Americans Are Shopping with Mobile Devices; Leo Burnett and Arc Worldwide; April 18, 2011; http://www.prnewswire.com/news-releases/smartphoneshopping-spree-new-study-finds-half-of-americans-are-shopping-with-mobile-devices-120059449.html; Accessed Sept. 29, 2011. 3 More Americans Are Searching for and Finding Healthcare Information Online; Kaiser Permanente; Aug. 7, 2007; http://xnet.kp.org/newscenter/ehr/2007/080707onlinehealthinfo.html; Accessed Sept. 29, 2011.

vulnerable in the wallet.4 With this as a backdrop, astute employers already know they have been asked to shoulder the bulk of increased healthcare costs, with the average cost for employee family health insurance jumping nine percent this year to $15,073, up from $13,770. But while the employee share of the total cost rose a little more than three percent, the contributions from their bosses jumped 12 percent to $10,944.5 With this growing focus on healthcare cost-reduction, any tool that can promote efficiency is considered a boon to the industry. More and more, employers are pointing to what the techsavvy and even the curious novice have already begun to understand: smartphones iPhones, BlackBerries, and Androids will dominate and offer the best business opportunities in mobile healthcare by 2015.6 Mobile communications are a natural extension of employee benefit plans, with pull-through options that encourage workers and their dependents to participate in preventative health and wellness practices. Its a phenomenon that is not only beginning to catch on its taking hold. Smartphones: Its a No-Brainer New reports show that six in 10 doctors in the Unites States have smartphones, and most use their devices for emailing and accessing the mobile Internet. Whats more, about 80 percent of all doctors are predicted to own a smartphone by 2012.7 Smartphone apps already allow health professionals at all levels to deliver the most up-to-date medical resources, enabling remote monitoring of high-risk patients and providing for interactive communication that can eliminate the need for unnecessary doctors office visits or trips to the hospital emergency department. In todays mobile world, virtually no one leaves home without a smartphone and for good reason. With the subject of healthcare becoming one of the most important and talked-about issues, smartphones open windows to retrieve and disburse online healthcare information at a moments notice. Heres proof: searching for health information online is the third most common Internet activity, behind checking email and accessing a search engine.8 The Golden Age of smartphones has arrived they have become relevant and useful, going far beyond the call to provide entertainment. In a short time period, they have taken on significant meaning for all populations, especially young adults who have always trusted their value.
4

Kaiser Poll Shows Health Insurance Costs Up 9%; CNN; Sept. 27, 2011; http://www.chicagotribune.com/business/breaking/chi-kaiser-poll-shows-health-insurance-costs-up-920110927,0,7578560.story; Accessed, Sept. 29, 2011. 5 Kaiser Poll Shows Health Insurance Costs Up 9%; Sept. 27, 2011. 6 Jackson, S.; Survey: Smartphones Will Dominate Healthcare by 2015; FierceMobileHealthCare; Jan 18. 2011; http://www.fiercemobilehealthcare.com/story/survey-smartphones-will-dominate-healthcare2015/2011-01-18; Accessed Sept. 29, 2011. 7 Savarsohn-Kahn, Jane; Doctors and Smartphones: Implications for the Mobile HER; Health Populi; July 9, 2010; http://healthpopuli.com/2010/07/09/doctors-and-smartphones-implications-for-the-mobile-ehr/; Accessed Sept. 29, 2011. 8 Dolan Lewis, Pamela; New Vital Sign: Degree of Patients Online Access; American Medical News; Feb. 21, 2011; http://www.ama-assn.org/amednews/2011/02/21/bil20221.htm; Accessed Sept. 30, 2011.

Without consulting Mom and Dad, those up to age 26 (who are probably covered under their parents plan) are ripe for opportunities to touch an app and gain pertinent and valuable realtime information. Healthy Choices, Healthy Changes It should not come as a surprise that some of the largest healthcare providers are creating apps for employer health plans that encourage healthy behavioral changes and savvy savings techniques that engage and reward participating employees. To keep these employees at the top of their game, companies are buying in, taking advantage of mobile technologies to eliminate confusion and uncertainty on the part of employees and their families affected by healthcare reform. Already, smartphones have offered the potential to provide a critical platform to deliver timely and proactive communication online to employees about their health plans. These initiatives are going a long way to alleviate fears and educate workers about upcoming changes. Theres more. Employers can now deliver wellness information online everything from healthful diets and recipes to information on healthcare reform and specific medical conditions like diabetes, heart disease and pregnancy. Employees can digest and share this information at their own pace, all in the name of reduced premiums, less absenteeism, improved overall health, greater worker productivity and the bottom line. Smartphone applications can be developed for many processes including health data management and personal recordkeeping. Some smartphone providers offer as many as 2,000 apps to help monitor and support wellness practices including measuring heart rates, providing drug references, recording symptoms, planning exercise schedules and managing diabetes.9 Several apps can display savings gained, process account balances or figure out if a co-pay is due. Companies can also turn to smartphones and target employees who have trouble managing their chronic conditions, such as asthma or diabetes, to better control their health assessments and eliminate frequent hospitalizations or trips to the emergency room. In turn, mobile apps can serve as reminders for patients to prompt them when to take their medications and the appropriate time to order refills, important touch points for enhancing compliance and adherence. After all, studies suggest that improved adherence by way of reduced hospital admissions, emergency room and doctor visits, laboratory tests and additional therapy could account for some $258.3 billion in potential hospital cost savings nationwide. A good portion of these reductions would benefit the chronically ill, or those that carry the heaviest burden for medication spending. 10
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41 Million Dollar Market for Mobile Phone Medical Aps; Kalorama Information; Jan. 4, 2011; http://www.mobiletechnews.com/info/2011/01/04/133140.html; Accessed Sept. 30, 2011. 10 Dearment, Alaric; Adherence, Generics to Reduce $403bn in Waste; Drug Store News; June 20, 2011; http://drugstorenews.com/article/adherence-generics-reduce-403bn-waste; Accessed Sept. 29, 2011.

Employees with disability-related illness or injury or who are living with a chronic health condition also consume a highest percentage of benefits in the overall employer-sponsored plan. This further underscores the importance of managing communication related to these conditions, and heightens the need to make patients more receptive to health and wellness information. Pick Up the Phone: Got an App? There seems to be a medical app for just about everything and everybody these days. Mobile apps can be designed to accommodate accessibility, and greatly improve safety for those adhering to medical prescriptions by organizing drug information and managing any combinations of medications from birth control pills to vitamins and supplements. Thats good news for working moms, who are often referred to in the medical community as a familys Chief Health Officer. They, too, are increasingly using smartphones to manage and track their familys health information; one in three moms use their smartphones for healthcare purposes compared to 22 percent of the general population.11 Smartphone applications are sending a message to employers loud and clear. The ability to provide employees with convenient and easy access to health information from a user-friendly, hand-held computer at the drop of a dime makes dollars and sense. While they may have once been considered a disruptive annoyance or a factor contributing to decreased worker productivity, smartphones can now dramatically influence informed decision making about medications and healthcare services that result in savings for both employees and employers. As healthcare costs continue to rise, with annual premiums for a family of four now equivalent to the price of a new car, the challenge for all stakeholders will be to integrate this information into successful strategies for reducing costs, when a weakened economy needs it most. Providers, insurers, patient and employers can embrace a healthcare innovation that is brisk in potential and just too good to ignore just pick up the phone. Chances are its a smart one.
About the Author Robert Oscar has more than 25 years of experience in healthcare. Throughout much of his career, Mr. Oscar has developed and implemented successful programs to effectively manage pharmacy benefit risk including pioneering work in the Medicare HMO market. Before founding RxEOB, more than a decade ago, Mr. Oscar worked in the medical information systems industry, designing, developing and implementing several different claims analysis tools. Mr. Oscar, a registered pharmacist licensed in Virginia, is a graduate of Ohio Northern University, and is certified in pharmacy based immunization.Contact info: info@rxeob.com or 804.643.1540 x221. About RxEOB RxEOB helps millions of people understand the most cost-effective way to use their pharmacy benefit programs through web-based and mobile software applications. Additionally, the company deploys webbased applications to reduce the labor-intensive processes within health plans and PBMs of gathering, integrating and accessing drug claims and formulary data, processing drug prior authorizations and creating
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How Moms Use Smartphones for Health Info; eMarketer; Aug. 17, 2011; http://www.emarketer.com/Article.aspx?R=1008545; Accessed Sept. 29, 2011.

one-to-one consumer engagement communications. Customers routinely customize their applications with RxEOBs expert staff support and have 24/7 access to web-based reporting tools to measure the changes in pharmacy utilization and adherence. For more information, log on to www.RxEOB.com.