Enrollment in consumer-directed health plans grew by 22 percent in 2010, according to a new study.
The study of employer-sponsored health plans, commissioned by the American Association of Preferred Provider Organizations and conducted by Mercer, found enrollment in CDHPs rose from 23 million in 2009 to 28 million last year.
While PPO enrollment has remained steady at 69 percent since 2008, CDHPs, which give consumers more control over the cost of their healthcare, were the only type of plan to show enrollment growth. Enrollment went from 7 percent in 2008 to 11 percent in 2010. This trend corresponds with a slight but steady decline in HMOs over that same period, researchers said.
[See related story: AMA report shows little competition among health insurers.]
Karen Greenrose, the AAPPO's president and CEO, said last year's continued economic slowdown combined with the rising cost of healthcare forced employers of all sizes to seek innovative ways to reduce what they spend to cover their employees' health insurance.
"Given the cost savings inherent in the consumer-directed model, it's clear that employers – especially our largest ones – are increasingly looking to CDHPs to do that," she said. "In today's tough environment, CDHPs – which are predominantly built on PPO networks – offer the affordability, choice and access that employers and consumers alike are looking for."
According to the survey:
- Very large employers – or companies with more than 20,000 employees – were the major driver of the rise in CDHP offerings in 2010.
- 51 percent of the nation's largest companies offered their employees a CDHP model, compared to 43 percent in 2009.
- Small employers (10-499 employees) led the charge with a jump from 9 percent to 15 percent.
- Employers of all sizes expect to increase their CDHP offerings in the future, pointing to the likelihood that this trend of growth will continue in the years to come.
Of the 254 million Americans that the U.S. Census Bureau estimates have private or government health insurance, 203 million are enrolled in PPO-based plans, including point-of-service and consumer-driven plans. HMO enrollees represent the remaining 51 million (or 19 percent).
Read the entire study here.
[See also: National health plans CDHP delivers ROI.]
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