Benefits October 29, 2007

Over Two-Fifths of Employers Offer Some Type of CDHP

October 29, 2007 (PLANSPONSOR.com) - A survey by the International Foundation of Employee Benefit Plans (IFEBP) found 42.8% of corporations offer some type of consumer-driven health care plan (CDHP) to employees.
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The most common CDHP offered by 22.7% of survey respondents is a high-deductible plan with a health savings account (HSA), according to a press release. A high-deductible plan with a health reimbursement arrangement (HRA) is offered by 11.5% of employers surveyed and a high-deductible plan without an account is offered by 8.6%.

Corporations are more likely to offer a consumer-driven health care option than other employment sectors, IFEBP said. When looking at all U.S. employers, including public employers and multiemployer plans, 35.7% offer some type of CDHP.

The survey also found mail-order drug programs are the most common prescription drug cost-management technique, used by 86.1% of U.S. organizations. Other popular options include drug formularies, three or more cost-sharing tiers, pharmacy benefit managers and mandating or promoting generic drug use.

Other survey findings include:

  • 27.9% of corporations have a cash balance pension plan compared to just 16.7% of overall U.S. respondents.
  • Adoption benefits are most common in the corporate sector, with 61% of corporations offering some type of adoption assistance. Of the organizations surveyed, 24.3% offer financial assistance and 26.7% offer paid leave.
  • Flexible benefit arrangements are also most common in the corporate sector, offered by 95.5% of corporations. The most common offering is a health flexible spending account (73.1%).

Some findings from all U.S. respondents, including corporations, public employer plans, professional service providers, and multiemployer plans include:

  • About 50% of respondents estimate their benefit costs as a percentage of payroll to be 31% or more.
  • Of the organizations surveyed, 75.7% offer at least one defined contribution retirement plan. By far, the most commonly offered is a 401(k) plan (78.3%). Of the organizations offering DC plans, nearly 80% match their employees’ contributions.
  • More than 91% of respondents offer dental benefits. The most commonly provided plan is a dental preferred provider organization (PPO).

More than 1,200 respondents from the U.S. and Canada participated in the survey.

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