Best’s News & Research Service - August 19, 2014 04:19 PM (EDT)
Survey: Consumer-Driven Health Plans on Rise
WASHINGTON //BestWire// - Consumer-directed health plans are becoming increasingly popular among large employers, according to a new survey released by the National Business Group on Health, a nonprofit association of nearly 400 large U.S. employers.
The survey found the number of employers offering workers a CDHP as the only health benefits option is expected to surge by nearly 50% next year. The increase is being driven in large part by rising health care benefit costs, the survey found.
According to the survey, employers project their health care benefits costs will increase by an average of 6.5% in 2015.
"Despite the many distractions that the Affordable Care Act has created, large employers haven't lost sight of the fact that rising health care costs remain a significant issue that needs to be constantly addressed," Brian Marcotte, president and chief executive officer of the National Business Group on Health, said in a statement.
The NBGH said that increase was slightly lower than the 7% increase employers would have experienced this year had they made no changes to their plan design. However, employers expect to keep increases to 5% next year after making changes to their plans, such as increasing cost-sharing provisions, implementing and expanding CDHPs, and broadening their use of wellness programs and Centers of Excellence.
The survey, based on responses from 136 of the nation's largest corporations, was conducted in June 2014. The NBGH's board of directors includes representatives from Coca-Cola Enterprises Inc., Fidelity Investments, General Mills Inc., General Motors Co., IBM Corp., Lockheed Martin Corp., Wal-Mart Stores Inc. and Walt Disney Parks and Resorts among others
Clare Krusing, a spokeswoman for America's Health Insurance Plans, said in an email that insurers and employers have been working together to find ways to lower medical costs. Krusing said the tactics that are being used to lower costs include cost-sharing provisions, wellness programs and high-value provider networks.
She added that CDHPs may be a good option for consumers who are looking to take on greater control of their health care spending.
"But the prices for medical care and treatments are rising at unsustainable rates, which makes finding flexible, affordable solutions an ongoing challenge," Krusing said.
The ACA was always expected to increase the market's reliance on CDHPs.
Earlier this year, Adam Beck, assistant professor of health insurance at The American College in Bryn Mawr, Pennsylvania, authored a white paper on behalf of the Independent Insurance Agents and Brokers of America, which found that CDHPs were one of several options that could be appealing to consumers entering the market for the first time.
Beck's paper said the ACA is also likely to increase private exchanges among very large employers (Best's News Service, April 15, 2014).
(By Jeff Jeffrey, Washington Bureau manager: jeff.jeffrey@ambest.com)