More than two-thirds of health plan executives responding to a CSC survey are worried that rising unemployment will negatively impact their small-group line of business.
With companies dropping health benefits or gravitating toward products that continue to shift the cost to their employees, health plans must develop consumer-directed health plans for these new consumers, said Jordan Battani, principal at CSC.
“You’re at a disadvantage if you don’t have a CDHP,” she said. “Plans need to develop best practices for CDHP.”
While Blue Cross Blue Shield of Tennessee has had in-group losses due to layoffs, the Blues plan doesn’t expect its CDHP offerings to be impacted, said spokesman Scott Wilson. Enrollment in the individual line of business CDHP plans grew by about 23 percent in 2008, with about 8 percent of the under-65 business in one of the plans. Overall, CDHP membership in BCBST’s group plans rose from 90,239 in December 2008 to 96,941 in January 2009.
Aetna’s revenue increased 12 percent to $8 billion for the fourth quarter in 2008, reflecting an increase in membership and premium rates. Aetna realized strong growth in Medicare, Medicaid, commercial membership in its National Accounts and Middle Markets and nontraditional markets such as Students and Individuals, said spokesman Fred Laberge.
CDHP membership increased from 900,000, reported in Q407, to 1.4 million in Q408. Growth was across the board, in keeping with Aetna’s diversified strategy, he said.
WellPoint is working with its customers to tailor products and services that are affordable and meet their healthcare needs, said spokeswoman Cheryl Leamon. “Even though we’re in a tough economic environment, we believe our CDHP plans will continue to grow as employers view them as an affordable alternative for their health insurance and a means to save on premiums,” she said.
Carl Doty, a vice president at Forrester Research, said more employers will likely offer CDHPs as a way to cut costs.
“The bad news is that while CDHP enrollments will rise as a percentage of the commercially insured population, it will be a net negative in terms of total membership for insurers because so many of these newly uninsured consumers will either end up in a public program or go without,” he said.