Study: Growth Seen in CDHP Segment

A Milliman news release reported that 93% of those who responded to the CDHP part of a recent Miliman survey said they expect to offer employers a high deductible plan with an integrated employee account, i.e., Healthcare Reimbursement Account (HRA) or Health Savings Account (HSA) in the next 12 months.

“The majority of insurers have taken steps to prepare for consumer driven health. The still unanswered question remains; to what degree will employers and employees buy in,” says Steve Cigich, author of the survey. Though available from insurers, few employers/employees have thus far chosen these products. Among respondents, CDHP premium revenue will only be 2.5% of all commercial premium revenue in 2005. However, respondents expect this amount to double to 5.2% in 2006.

HMOs and PPOs offer a variety of CDHP approaches. All CDHP approaches surveyed showed an increase in popularity except self-selected networks and self-selected benefits. Approaches showing an increase in availability include high deductible plans, integrated employee accounts such as HRAs or HSAs, tiered provider networks, sharing price and quality information with members for physician and hospital services, and education regarding treatment options available to members.

The survey also found that 44% expect to offer a tiered provider network within the next year. Tiered provider networks often provide members with financial incentives to choose the most efficient providers with the hope of reducing costs. More than half of all respondents reported that they currently share or plan to share within the next year price and quality information with members for hospital and physician services.

Complete results for the Milliman 2005 Group Health Insurance Survey will be available in late October.