More companies are offering consumer-directed health plans, and those adopting such plans are seeing their healthcare costs drop, according to results of a recent survey.
The number of companies offering CDHPs is rising, and more than twice as many workers have enrolled in such programs in the last two years, according to an annual survey conducted by Watson Wyatt and the National Business Group on Health.
CDHPs typically link higher deductibles for workers with a tax-advantaged saving vehicle, such as health savings accounts, to pay for services not covered under an insurance plan. Such plans are less expensive for employers than traditional health coverage, the rates for which have been rising far faster than the rate of general inflation for several years.
Some 47 percent of the 453 large U.S. employers participating in the survey offer a CDHP, an increase from 39 percent in 2007 and 33 percent in 2006, survey data showed.
When asked about future plans, some 54 percent of survey respondents said they plan to offer a CDHP by next year.
Employee acceptance of the plans is slow, but rising quickly. The survey found that 15 percent of employees at organizations that offer CDHPs are enrolled in such plans, up from 10 percent in 2007 and 8 percent in 2006.
Only 6 percent of companies report that all of their employees are enrolled in CDHPs, but 9 percent of respondents expect that level of participation by next year.
"A CDHP offers a way for companies to control costs while increasing employee accountability for healthcare decisions," said Ted Nussbaum, a director of group and healthcare consulting for Watson Wyatt.
"The participants in a consumer-oriented model must be more familiar with the system and have a deeper understanding of their options. But encouraging employees to adopt healthy behaviors and manage their health proactively is no easy task," he said.
The survey found that companies with at least half of their workforce enrolled in a CDHP had a two-year median cost trend of 3.6 percent, almost half that of companies without a CDHP. Overall, companies with a CDHP experienced a two-year cost increase trend of 5.5 percent, compared with 7 percent for companies that don't offer a CDHP.
"As popularity of the consumer-driven approach grows, companies will be able to better manage costs and workers will take a more active interest in their own healthcare," said Helen Darling, president of the National Business Group on Health. "Actively involving more workers in their healthcare and giving them the resources to make educated decisions can be a challenge, but it should be embraced. The end result can be a mutually beneficial system for both companies and their workers."