Mercer U.S. Consumer-Directed Health Plans

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Consumer-Directed Health Plans
Calendar18 May 2017

Can Consumer-Directed Health Plans Work for Everyone?

The past decade has seen consumer-directed health plans coupled with health savings accounts grow into one of the most significant strategies in medical plan design. With healthcare cost increases continuing to outpace inflation, a CDHP strategy can help employers manage their benefits costs more effectively. In fact, the average per-employee cost of HSA-eligible plans is 13% less than that of a traditional PPO.

Managing health benefit cost is a business imperative. Consumer-directed health plans are a proven way to reduce cost – but are they right for your program?  And how can you help employees feel comfortable with moving to a high-deductible plan? Mercer can help you find a CDHP strategy that works for your organization.

Be in Control of Your Healthcare Spending

The growth in consumer-driven healthcare remains the most significant strategy in medical plan design. CDHP enrollment jumped from 25% to 29% of covered employees in 2016 across all employer health plan sponsors. Based on Mercer’s National Survey data, by 2019, we expect 72% of large employers to offer a CDHP.

Employers use CDHPs to advance a number of goals:

  • to promote consumerism
  • to provide more affordable coverage
  • to permit tax-advantaged saving
  • to control benefit cost growth, minimizing the threat of the excise tax

With detailed benchmark data, Mercer benefit consultants can help design a program to meet the needs of your employees and your business.

The ACA’s impending excise tax, known as the “Cadillac Tax” has been a big motivator for employers to offer range of  healthcare coverage choices, including lower-cost plans. For many employees, CDHPs are an extremely efficient way to save for future health expenses. However, for employees without sufficient savings and significant health expenses, a high-deductible plan can result in financial hardship.

The key to making the decision to offer a CDHP alone or as a choice is understanding employee needs and preferences, as well as the new resources that are available to support decision-making and help manage out-of-pocket spending. Mercer’s healthcare consultants, equipped with 31 years of data, can analyze your organization and help construct a plan that works best for you and your people.

Plan Smarter with Mercer's Healthcare Data

Check out Mercer’s latest Mercer`s National Survey of Employer-Sponsored Health Plans 2016: timely, reliable health and benefits data used by employers, policymakers, the healthcare industry and the media.

 

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Have questions? Want to speak to a consultant? Whatever the size of your company, we can help transform your health and benefits programs.

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