Employee enrollment in account-based health plans has increased sharply this year, with 27 percent of eligible workers choosing to join such plans.
This is a 35 percent increase in participation by those who have the option, according to a survey by Towers Watson and the National Business Group on Health. At the same time, the percentage of businesses offering an account-based plan has grown from 53 to 59 percent over the last year, among firms with 1,000 or more employees. The preference for these employee benefit plans is growing as more employers see the potential to lower their premiums with account-based options.
The survey found that employers expect to see healthcare costs increase by 5.9 percent in 2012, and that account-based plans were significantly less expensive than alternatives. The potential for account funds to rollover from year to year is also seen as an advantage that may help retiring employees at a time when some firms are reducing or eliminating retirement benefits.
The tax advantages account-based plans have for participating workers are also seen as a reasonable trade-off for the disadvantages they may have in comparison to traditional plans. Reuters notes that, while these plans typically come with higher out-of-pocket costs, some expect that to be helpful by encouraging people to consume healthcare more carefully, slowing cost growth.
