Papa Reduces Healthcare Costs among Medicare Advantage Members by 9%, According to New Claims Study

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May 22, 2024, 08:30 ET

Analysis of over 2,300 members shows improved healthcare utilization and adds to a growing body of research validating Papa's impact across populations

MIAMI, May 22, 2024 /PRNewswire/ -- Papa, an end-to-end human care network supporting social needs, today announced findings from a claims analysis by a leading actuarial firm showing the impact of companion care. The study, which evaluated changes in healthcare costs and utilization for select Medicare Advantage members pre- and post-enrollment in Papa, found significant cost reductions and a decrease in utilization of higher-acuity, higher-cost care among members who engaged in the program.

Findings from the analysis showed that members with one or more Papa visits experience a 9% reduction in medical costs, driven by favorable changes in healthcare utilization, including:

18% reduction in inpatient hospital admissions
22% reduction in skilled nursing facility use
6% increase in home health services
5% increase in outpatient services

These findings show members who have access to in-home support from Papa Pals demonstrate more informed use of healthcare services, often seeking lower-cost care and recovery at home over in-patient or facilities-based services. And members who completed more Papa visits were associated with even greater cost reductions—showing the potentially exponential impact long-term connection can have on an individual's health, including:

19% reduction in medical costs for members who average more than two Papa visits per month
30% reduction in medical costs for members who average more than three Papa visits per month

"The overwhelming majority of adults want to remain in their homes and communities as they recover and age, yet many lack the social support and resources necessary to safely do so," said Kelsey McNamara, MPH, head of research and impact at Papa. "Most of a person's perceived needs after a hospital discharge, for example, are social, not clinical. In fact, 40% of readmitted patients report that a challenge at home contributed to their hospital readmissions, including unmet social needs, like transportation and food, and a lack of social support. Today's results further validate that Papa can help older adults age and heal at home, and in the process, significantly reduce healthcare costs."

Today's results add to a growing body of evidence that shows Papa is associated with cost reductions across populations, with higher-needs members yielding even greater savings. For example, a 2022 claims analysis by a Washington-based health plan among 2,000+ Medicare Advantage members who were identified as socially isolated found a 19% decrease in medical costs among members who took at least one Papa visit, while another 2022 analysis by a Michigan-based health plan of Medicaid members with high emergency department utilization found a 33% reduction in healthcare costs for active Papa participants.

As health plans continue reporting higher-than-expected healthcare utilization and spending from their Medicare Advantage members, and considering the Centers for Medicare and Medicaid Services' ramp up of supplemental benefit scrutiny and data collection, there's heightened interest in solutions that reduce costs, improve utilization, and help members seek and remain in lower-acuity care settings for longer.

For more information on Papa's proven impact in these areas, visit www.papa.com/research. For information on Papa's service and outcomes-driven programs to help health plans achieve these objectives, visit www.papa.com/product.

Methodology
A national actuarial firm conducted this analysis leveraging standard claims cost analysis protocol. A total of 2,386 Medicare Advantage members from a regional health plan were enrolled in Papa between January 2021 through August 2023, utilized at least one visit, and had sufficient claims data for the analysis. Program impact was analyzed using risk-normalized allowed claims costs and utilization eight months prior to and eight months following program enrollment.

About Papa
Papa is a new kind of care, built on human connection. Across the country, health plans and employers look to Papa to provide vital social support by pairing older adults and families with Papa Pals, trained and vetted companions, who provide a helping hand and an open ear, resulting in less loneliness and better health. Furthered by its remote team of social care navigators, Papa also offers ancillary outcomes-driven impact programs designed to help health plans improve health equity, enhance Star Ratings, and reduce costs. Founded in 2017 and headquartered in Miami, Papa is backed by Canaan, Tiger Global Management, Comcast Ventures, SoftBank Vision Fund 2, TCG, Initialized Capital, and Seven Seven Six, among other revered institutional and individual investors. We envision a world where no one has to go it alone. Learn more at papa.com.

Papa Media Contact:
Jill Bongiorni Meadows
[email protected]

SOURCE Papa Inc.