Along with positive behavior change from the participants in CDHPs comes significant premium savings and more engaged consumers. The evidence below is reason enough to take a look at these plan designs as a way to control the ever increasing costs of healthcare. However, there are also indications that some of the repercussions from these plans could be care avoidance, increased bad debt and disengagement due to the difficulty in understanding how the supplemental accounts work. As these plans evolve and change, the key will be employee/consumer communication and education.
The 2014 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS) finds:
-15 % of the privately insured population was enrolled in a consumer-driven health plan (CDHP)
-11% was enrolled in a high-deductible health plan (HDHP)
-74% was enrolled in more traditional coverage
26 million individuals with private insurance were enrolled in a CDHP—a health plan coupled with a health savings account (HSA) or health reimbursement arrangement (HRA), or an HSA-eligible health plan.
The following also comes from the 2014 Employee Benefit Research Institute/Greenwald and Associates Study(click on the link to read the full survey findings):
- The 2014 CEHCS also finds that among individuals enrolled in CDHPs, 57 percent had an HSA or HRA, while 43 percent were enrolled in HSA-eligible health plans but had not opened an account.
- This study finds evidence that adults in a CDHP and those in an HDHP were more likely than those in a traditional plan to exhibit a number of cost-conscious behaviors. Specifically, those in a CDHP were more likely than those with traditional coverage to say that they had checked whether the plan would cover care; asked for a generic drug instead of a brand name; talked to their doctors about prescription options and costs; checked the price of a service before getting care; asked a doctor to recommend less costly prescriptions; talked to their doctors about other treatment options and costs; developed a budget to manage health care expenses; and used an online cost-tracking tool provided by the health plan.
- There is also some evidence that adults in a CDHP were more likely than those in a traditional plan to be engaged in their choice of health plan. Specifically, those in a CDHP were more likely than those with traditional coverage to say that they had attended a meeting where health plan choices were explained; consulted with their employer’s human resources (HR) staff about health plan choices; and were more likely to have consulted with an insurance broker to understand plan choices.
- The survey also finds that CDHP enrollees were more likely than traditional-plan enrollees to take advantage of various wellness programs, such as health-risk assessments, health-promotion programs, as well as biometric screenings. In addition, financial incentives mattered more to CDHP enrollees than to traditional-plan enrollees.
More to come on this through P&B Live Benefit Resources.
If you have questions/comments or would like to speak with a benefit specialist about your health insurance options or group benefits plan. Please reach us at: