Benefits November 15, 2005

CDHP's Remain Employers' Cost Saving Choice

November 15, 2005 (PLANSPONSOR.com) - A Deloitte Center for Health Solutions survey of American employers found that 22% of US employers already have a consumer-driven health plan (CDHP) in place and 21% will be offering one within the next two years.
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According to Deloitte’s news release on the survey, 51% of respondents said they are reviewing consumer-driven options, such as health savings accounts (HSAs), and may offer one in the near future if they can be proven to be attractive to employees while saving money.

The survey by the Deloitte Center for Health Solutions and Deloitte Consulting LLP found that employers believe that giving employees more control over their health care dollars would make them more financially responsible, and therefore reduce overall health care costs. Specifically, according to the release, the results showed:

  • 77% of respondents expect consumer-driven plans to change employee purchasing patterns by making them aware of the true cost of health care. In contrast, 8% said they will not.
  • 56% said CDHPs will result in immediate employer cost savings, while 27% said they will not.
  • 43% of those surveyed said CDHPs will reduce the long-term health cost trend, while 24% said they will not.

Sixty-three percent of the respondents with plans already in place offer a health reimbursement account (HRA) plan, while 31% offer an HSA. Those with a CDHP already in place report satisfaction with the plan among employees and mangers. Specifically:

  • 51% said their employees are satisfied with the plans, 15% said employees were dissatisfied, and 33% said employees were neutral.
  • 71% said senior management is satisfied with the plans, 3% said senior management was dissatisfied, and 33% said senior management was neutral.
  • 69% said HR is satisfied with the plans, 13% dissatisfied, and 17% neutral.

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