Consumer-directed health plans (CDHP) are on the rise in the United States—and more employees are using them.
According to a Watson Wyatt survey of 453 large U.S. companies, 47% currently offer a CDHP and 15% of employees are enrolled in these programs. It’s a sharp increase from just two years ago when only 33% of companies surveyed offered such programs and only 8% of employees were participating.
By 2009, 54% of companies plan to offer a consumer-directed health plan for their employees.
“A CDHP offers a way for companies to control costs while increasing employee accountability for health care decisions,” says Ted Nussbaum, Watson Wyatt’s director of group and health care consulting in North America. “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.”
Companies with at least half of their workforce enrolled in a CDHP had a two-year median cost trend that was almost half of those companies without a CDHP. The survey also found that 27% of companies offer a CDHP with a health savings account while 24% of companies offered a health reimbursement account.
Helen Darling, the president of the National Business Group on Health, says as the consumer driven approach becomes more popular, companies will be able to better manage costs, and workers will be more active and interested in their health care. She adds: “Actively involving more workers in their health care 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.”
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