Consumer driven health plans continued their growth in the past year, though their growth was at a slower rate than in the past, according to preliminary results from the 2011 UBA Health Plan Survey conducted by United Business Advisors.
The benchmarking survey, the nation's largest, collects data from more than 16,000 health plans and nearly 11,000 employers.
[See also: Consumer-driven health plans increase rolls to 22 million in 2010]
"The intent of the survey is to provide employers of all sizes with the data they need to manage their healthcare benefit programs effectively," said Bill Stafford, UBA vice president, member services, in a press release. "Especially for employers with fewer than 1,000 employees (which represents more than 99 percent of the employers in the U.S.) and for employers who have operations in multiple locations, this survey is the best source of reliable regional – and in many cases, state – health plan benchmarks by employer size and industry categories."
The survey found that CDHPs grew at a rate of 13.9 percent this year, still significant growth, but only about two-thirds the growth rate of 2010 when these consumer-focused plans grew at greater than 20 percent. Currently, CDHPs represent 22.9 percent of all plans offered and cover 17.3 percent of employees, a greater percentage of employees than are now covered in HMOs (11.9 percent), according Stafford.
To help employees offset the higher out-of-pocket expenses under CDHPs, employers continued to offer funds to offset these costs by offering a health reimbursement arrangement (HRA) or health savings account (HAS). The 2011 UBA survey found the average employer contribution to an HRA was $1,656 – up from $1,481 in 2010 – for a single employee and $3,198 for a family (up from $2,857 in 2010).
[See also: EBRI research shows growth in HSA, HRA use]
"For the first time in more than seven years of reporting, CDHPs nationally did not create a savings over the clients' in-force plan prior to renewal. This year experienced an increase (2.1 percent), albeit less than the average 8.2 percent increase of all plans," said Stafford. "As these plans become more prevalent, the percentage of savings has continually declined."
Other key findings of the 2011 survey:
- The average renewal increase for all plan types was 8.2 percent.
- PPO plans have nearly two-thirds of all enrolled employees (64.4 percent).
- The average employee contribution for plans, for all plan types is $117 for single and $467 for family.
- Four-fifths of all wellness plans offered a health risk assessment.
- As a direct result of healthcare reform criteria, 81.3 percent of all plans now offer an unlimited lifetime maximum benefit compared to just 16.1 percent in 2010.
- Of all plans in the Northeast, 80.7 percent still have 100 percent coinsurance, a decline of only 1 percent from 2010.
- Nearly half (49.9 percent) of all covered employees also elected to cover their dependents, a decline of 6 percent.
The 2011 UBA Health Plan Survey will be available to the public on Nov. 1. Only UBA member firms have access to the granular state, region and industry data. The analysis of the 2011 survey data will continue over the next several months and, as in past years, additional findings will be published as they become available.