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Consumer-Directed Health Plans Continue to Grow as Popular Vehicle to Bring Choice, Flexibility and Access to Consumers
Date:3/4/2008

ng on the type of plan, either they or their employers (sometimes both) deposit money into an employee-controlled spending account. They can then spend the funds tax-free for various medical services, including medical insurance deductibles. The PPO delivery model complements this program by providing members access to an interconnected network of providers and services at an affordable cost.

An interesting finding in this year's report shows that employers offering CDHPs are also more likely to provide health information tools, such as information on health conditions and data on provider quality and cost, to their employees than employers not offering CDHP products. This underscores that as consumers become more informed users and are satisfied with CDHPs, their employers are stepping up to provide them with even more information tools in order to make more effective choices when accessing medical services. Health information tools are the keys to promoting consumers' satisfaction with CDHPs.

Other notable findings from this year's report, include:

-- More than 165 million Americans are enrolled in PPOs -- two-thirds of all insured Americans.

-- CDHPs use two different types of employee accounts: health savings accounts (HSAs) and health reimbursement accounts (HRAs). In 2007, 7.5 million people were enrolled in HRA-based plans and 5 million in HSA-based plans.

-- 77 percent of employers offer their employees tools that provide access to information on health conditions, 31 percent offer individual provider quality information, 27 percent provide information on provider cost and 61 percent provide tools to help members select the most appropriate plan based on expected utilization.

-- Enrollment in CDHPs grows in each successive year the plan is offered. Among those companies that offered an HSA for three years, average enrollment grew significantly each year, reaching an impressive 29 percent in the third year. '/>"/>

SOURCE American Association of Preferred Provider Organizations
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