Report: Castlight Health’s Navigation Solution Helps Employers Significantly Reduce Healthcare Costs

Santa Barbara Actuaries finds that employers saw a 9.1% year-over-year reduction in medical spend among those who use Castlight compared to a matched control group

Castlight Health, Inc., a leader in healthcare navigation, announced today results of a study by actuarial firm Santa Barbara Actuaries Inc. (SBA), which found that employers who implemented Castlight’s navigation solution experienced significant financial savings, including a 9.1% year-over-year reduction in medical spend among members who use Castlight compared to a matched control group.

Reducing healthcare spend remains a key priority for employers. Large employers in the U.S. continue to see healthcare costs rise at a significant rate and could increase due to the impact of deferred care throughout the pandemic in 2020. In addition, billions of dollars are spent on unnecessary care each year, further driving increased healthcare costs.

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SBA’s study compared medical spend for cohorts of individuals who were matched on demographics, clinical history, geography, and other factors with the Castlight eligible employer population. The report found that employers who implemented Castlight experienced a lower average medical spend in 2019 of $814 per-employee-per-year for members who used Castlight compared to their matched cohorts.

“The results of our study demonstrate that Castlight’s health navigation solution is having a significant, positive impact on employers and members in terms of their total healthcare costs, when compared to those who did not use Castlight,” said Ian Duncan, PhD, FSA, president of Santa Barbara Actuaries. “Our matched cohort study across a user population of nearly 20,000 members illustrates the difference in medical spend when users are able to better navigate their healthcare.”

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Employers are searching for solutions that simplify the health and wellbeing experience and help employees make better decisions about their health. Providing tailored recommendations and streamlined access to providers, health programs, and other healthcare resources is essential to decreasing healthcare spend and improving employees’ overall healthcare experience and outcomes.

“We are excited and proud that Santa Barbara Actuaries’ study validates Castlight’s approach to health navigation,” said Maeve O’Meara, chief executive officer of Castlight Health. “By providing a deeply personalized healthcare journey — one that seamlessly integrates the whole ecosystem of benefits, connects members with high-value providers and programs, and helps them avoid unnecessary care — Castlight’s platform delivers an engaging experience that empowers true behavior change to improve outcomes and, ultimately, leads to significant savings for both the employee and the employer.”

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