Consumer Driven Health Plan Growth Slows; Costs Surpass HMOs
MyHealthGuide Source: United Benefit Advisors (UBA) via PRweb, 8/22/2011, www.UBAbenefits.com
INDIANAPOLIS, IN — Consumer Driven Health Plans (CDHPs) in the U.S. experienced continued growth this year — albeit at a slower rate than in 2009 and 2010 — according to preliminary results released by United Benefit Advisors (UBA) from its 2011 UBA Health Plan Survey, the nation’s largest health plan benchmarking survey, with 16,421 plans from 10,744 employers. Survey findings
According to Bill Stafford, UBA Vice President, Member Services…
• CDHPs grew at a rate of 13.9% this past year (about two-thirds of the 2010 rate) to 22.9% of plans offered and cover more employees (17.3%) than Health Maintenance Organization (HMO) plans (11.9%),
• The Northeast region of the country had the largest concentration of CDHPs (31.3%), followed by the Southeast region (27.4%).
• The average cost increase for all CDHPs at 8.0% was slightly lower than that of the average of all plan types, which increased 8.2% this year.
• The average employer contribution to an HRA was $1,656 (up from $1,481 in 2010) for a single employee and $3,198 for a family (up from $2,857 in 2010).
• This year experienced an increase (2.1 %), albeit less than the average 8.2% increase of all plans.
“For the first time in more than seven years of reporting, CDHPs nationally did not create a savings over the clients’ in-force plan prior to renewal,” says. Stafford. “As these plans become more prevalent, the percentage of savings has continually declined.”
Other key statistics from this year’s Survey results:
• The average renewal increase for all plan types was 8.2%.
• PPO plans have nearly two-thirds of all enrolled employees (64.4%).
• The average employee contribution for plans with contributions for all plan types is $117 for single and $467 for family.
• Four-fifths of all wellness plans (80.6%) offered a health risk assessment.
• As a direct result of health care reform criteria, 81.3% of all plans now offer an unlimited lifetime maximum benefit compared to just 16.1% in 2010
• Of all plans in the Northeast, 80.7% still have 100% coinsurance, a decline of only 1% from 2010.
• Less than half (49.9%)% of all covered employees also elected to cover their dependents, a decline of 6%.
“The intent of the survey is to provide employers of all sizes with the data they need to manage their health care benefit programs effectively,” said Stafford. “Especially for employers with fewer than 1,000 employees (which represents more than 99% of the employers in the U.S.) and for employers who have operations in multiple locations, this survey is the best source of reliable regional — and in many cases, state — health plan benchmarks by employer size and industry categories.”
The 2011 UBA Health Plan Survey will be available to the public on Nov. 1. Only UBA Member Firms have access to the more than 250,000 pages of granular state, region and industry data. Stafford also said the analysis of the 2011 UBA Health Plan Survey data will continue over the next several months and, as in past years, additional findings will be forthcoming. UBA has Member Firms in virtually every major U.S. market. To locate one and learn more about the 2011 UBA Health Plan Survey, visit www.UBAbenefits.com.
About United Benefit Advisors
United Benefit Advisors is a member-owned alliance of more than 140 premier independent benefit advisory firms with more than 165 offices throughout the U.S, Canada and the U.K., and is the nation’s largest benefits advisory organization. As trusted and knowledgeable advisors, UBA Members collaborate with more than 2,000 professionals to seek out ideas, insight, expertise and best-in-class solutions that positively impact employers and make a real difference in the lives of their employees and families. Contact William Stafford, Vice President, Member Services, at 317-705-1800, bstafford@UBAbenefits.com and visit www.UBAbenefits.com.
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