-- 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
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
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
|SOURCE Aon Corporation|
Copyright©2007 PR Newswire.
All rights reserved