A recent survey found that consumer-driven health plans (CDHPs) have become more popular than health management organizations (HMOs) with employers in the United States.
Nearly 80 percent of organizations offered preferred provider organization (PPO) plans in 2011, making it the top choice again, PlanSponsor reports. A survey of almost 2,000 employers found that 58 percent offered CDHPs and only 38 percent had HMOs as an option, a reversal of the past status quo. CDHPs have grown in popularity rapidly in recent years, as employers sought to harness their potential to lower costs amid widespread concern over the growing expenses associated with sponsoring employee benefits.
CDHPs with Health Reimbursement Arrangements (HRAs) are particularly popular with large employers, leading to about 43 percent employee enrollment among employees who work at organizations with CDHPs. In contrast, only 28 percent are enrolled in plans with Health Savings Accounts (HSAs), despite the fact that they are offered by more employers. Researchers indicated this is because employers offering HRAs are generally pushing the programs harder, while those with HSA options may have a wider variety of choices for employees.
Employers hope that CDHPs will be effective tools in their efforts to improve employees' understanding of their own health, and involvement in managing it. Wellness programs, informational campaigns and other measures are also spreading as part of the same trend, as employers attempt to increase workers' engagement in their healthcare.
The future of CDHPs
According to the survey, enrollment in CDHPs is significantly lower than in PPOs and point-of-service plans. Employers are attempting to encourage worker participation in CDHPs through various measures, such as contributing funds to HSAs and HRAs, covering preventive medication costs before deductibles are paid or subsidizing premiums at a higher level.
Such measures and differences in employee benefit plan administration and design could cause CDHP popularity to keep growing, as long as employers continue to believe the advantages are worth the cost of incentivizing participation in such a fashion. With analyses indicating care costs will grow further this year despite the positive influence of healthcare reform, employers' concerns seem unlikely to diminish in the immediate future.
Some are also considering whether to supplement their plan offerings with more voluntary benefits, such as critical illness, hospital indemnity or accident insurance policies. These could provide helpful coverage, and may complement CDHPs and encourage enrollment, researchers reported.
