NEW INDEPENDENT STUDY
Pelago reduces medical costs by $11,829 per member, validated by Aon
An independent study shows that specialty substance use care leads to significant reductions in medical spend across substance use, chronic conditions, and all high-cost percentiles — delivering a 5:1 ROI for studied clients.
Key findings
Pelago reduced medical costs for members
After adjusting for baseline differences, Pelago participants saw $11,829 lower medical cost trends compared to the matched control group
Savings across chronic conditions
Treating substance use reduced costs across musculoskeletal, diabetes, cardiovascular, and other high cost conditions
Savings increased with member complexity
Members with 2+ comorbidities saw $10K in savings and those with 3+ saw $12K
Highest-cost members saw the greatest savings
For the top 10% of spenders, Pelago participants had $88K in lower medical cost trends PMPY
More than 5:1 return on investment
For every $1 invested in Pelago — inclusive of all program fees — studied clients saw more than $5 back in medical cost savings
Study overview
3 years of claims data
Aon independently analyzed medical claims from 2021 - 2024 to measure the cost impact of our specialty substance use care program
A like-to-like comparison
1,132 Pelago members were compared to 3,396 matched controls using Aon's Cost Efficiency Measurement — matched on geography, demographics, and 25+ medical conditions
Impact beyond substance use
The study measured medical cost changes across all conditions and cost percentiles, with the greatest savings among members with the most complex, expensive health needs
Real results from real organizations
James Garvie, SVP of Total Rewards at Southern Company, discusses how Pelago enables his strategy, and why we’re a top partner for both ROI and engagement
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