Employers are becoming more comfortable with consumer-driven health plans, according to Aon Consulting and the International Society of Certified Employee Benefit Specialists.
A recent survey of 470 employers shows that 37% offered a CDHP, up from 28% in 2006 and 22% in 2005. Among those with CDHPs, 42% provided health reimbursement arrangements, 48% offered health savings accounts and 10% offered both.
In addition, among employers that offer an HSA, 40% contribute $500 per person or more, 17% contribute less than $500 per person and 10% match employee contributions. Furthermore, 83% of that group offered a CDHP along with other health plans, while 17% provided a CDHP as the only option.
"This finding has held pretty steady over the past five years," says Bill Sharon, senior vice president at Aon Consulting. "The majority of employers offer a CDHP as an optional plan, since these plans operate very differently from an HMO or PPO, and it takes time for employees to become comfortable with a new plan type. Companies can achieve first-year savings of 8% of their premium if they implement an effective consumer-driven health care strategy."
Meanwhile, HSAs may be financially out-of-reach for low-income workers due to high deductibles, according to a recent report from the Bell Policy Center, a think tank focusing on fiscal and social issues. "HSAs may be useful for some consumers, but they are by no means a solution to the major problems in today's health care system," says Blair Woodbury, a researcher at the center.
Taxpayers claiming an HSA deduction in 2004 had an average income of $133,000, while the national average income is $51,000. Low-income families are less likely to take advantage of HSAs because they have a lower tax liability, meaning they benefit less from the opportunity to make tax-free contributions, Woodbury notes.
Furthermore, given a choice of health plans, only 20% of employees would select a CDHP, and low-income workers are likely to contribute to their HSAs only when their employer provides a match, Woodbury reports.
