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