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National Survey Shows Employee Fears About Consumer-Driven Health Plans on Decline
Date:9/12/2007

s health plan is a combination of employer contributions through a health reimbursement arrangement or health savings account, out-of-pocket purchases paid by the employee, and preventative healthcare coverage.

-- Health reimbursement arrangements are plans with accounts owned and

funded by the employer.

-- Health savings accounts are plans that are owned by the employee and

are funded either by the employee or with contributions from the

employer.

Survey results: More employers are offering CDH plans and more employees are enrolling in CDH plans. Compared to last year, fewer employers who offer a CDH plan cite fears of high out-of-pocket costs among employees as the main reason they are not enrolled in the plan.

-- 37 percent of employers are offering a CDH plan to employees, up from

28 percent of employers in 2006 and 22 percent in 2005.

-- 60 percent of employers have more than 10 percent of their employees

participating in a CDH plan, up from 53 percent of employers in 2006.

-- Of employers offering a CDH plan, 54 percent cited concerns among

employees about high out-of-pocket costs as the principal reason for

not enrolling in a CDH plan. That figure is down from 66 percent in

2006.

Impact on employers: Employers are offering CDH plans to employees as a way to introduce consumerism to healthcare purchasing and to reduce healthcare costs, which continue to increase by double-digit percentages. The philosophy behind CDH is that informed employees will spend their own money more conservatively than they would spend employer or health plan funds.

-- Aon Consulting's analysis (independent from the CDH survey) shows

employers can achieve first year savings of 8 percent of their premium

if they implement an effective consumer-driven healthcare strategy.

Impact on employees: More employees are becoming comfortable with CDH plan
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SOURCE Aon Corporation
Copyright©2007 PR Newswire.
All rights reserved

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