Study Shows 22 Percent Increase in Consumer-Directed Health Plans in 2010
Fifty-one percent of the nation's largest companies offered workers a CDHP model last year.
Enrollment in consumer-directed health plans (CDHPs) grew by 22 percent in 2010, up from 23 million in 2009 to 28 million last year, according to an analysis of the Mercer National Survey of Employer Sponsored Health Plans commissioned by the American Association of Preferred Provider Organizations (AAPPO).
While PPO enrollment has remained steady at 69 percent since 2008, CDHPs, which provide consumers more control over the cost of their health care, were the only type of plan to show enrollment growth, from 7 in 2008 to 11 percent in 2010, according to the survey. This trend corresponds with a slight, but steady decline in HMOs over that same period.
"Last year's continued economic slowdown combined with the rising cost of health care forced employers of all sizes to seek innovative ways to reduce what they spend to cover their employees. 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," said Karen Greenrose, AAPPO president and CEO.
"From the numbers that have been released, it is apparent that CDHPS are filling both a need and a void in the marketplace," said Tennessee Representative and House Energy and Commerce Health Subcommittee Member Marsha Blackburn. "Consumers want greater control over their health care decisions and they want it at a more affordable and manageable cost."
While the survey showed that employers of all sizes increased their CDHP offerings, very large employers -- companies with more than 20,000 employees -- were the major driver of the rise in CDHP offerings in 2010. Fifty-one (51) percent of the nation's largest companies offered their employees a CDHP model compared with just 43 percent in 2009. The percentage of small employers (10 - 499 employees) offering a CDHP model increased from nine to 15 percent.
Employers of all sizes surveyed 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.
Click here to view the entire study.