Headlines about "Health plans - consumer-driven"
Gathered from the web by the editors at BenefitsLink.com.
Consumer-Directed Health Plans Shown to Be Money-Savers
"A large study of the medical spending patterns of consumer-directed health plan enrollees, published in the May Health Affairs, found that CDHP enrollees did indeed spend less on care, saving them and their employers money. But the declines were not restricted to unnecessary and redundant tests. The drop also was due to fewer preventive tests and screenings." (American Medical Association)
[Guidance Overview] Whether or Not Constitutional, ACA Is Creating Turbulent Times for HSAs and HRAs (PDF)
At page 4. "Health savings accounts (HSAs) avoid many of the regulatory requirements under the ACA because they are not generally considered to be health plan coverage. By way of direct regulation, the ACA did increase the penalty for using HSA funds for non-medical purposes to a 20 percent excise tax (plus applicable income taxes) and requires a prescription for OTC drugs. More dramatically, however, is the potential for collateral damage to HSA viability as a result of ACA's regulation of the underlying high deductible health plan (HDHP) coverage, especially in the fully insured market. Some of this concern has been allayed recently when the agencies indicated that a portion of an employer's contribution (but not salary reductions) to an HSA could count toward the actuarial valuation requirements for the underlying HDHP plans." (Employers Council on Flexible Compensation)
[Guidance Overview] IRS Announcement of 2013 HSA Contribution Limits and HDHP Minimum Deductibles and Out-of-Pocket Maximums
"Although all of the inflation-adjusted amounts will increase for 2013, the increases within each category (i.e., self-only or family) are not identical. This has some practical consequences. For example, some individuals may have to pay more out-of-pocket expenses in 2013 without the benefit of the HSA tax break, because the increase in the HSA contribution limit is not keeping pace with the increase in the out-of-pocket maximum. In addition, the greater difference in 2013 between the minimum required deductibles and the out-of-pocket maximums ($5,000 for self-only coverage and $10,000 for family coverage) will allow plan sponsors a wider range of potential deductibles because, at least before 2014, HDHP deductibles can be set as high as the out-of-pocket maximum for that coverage." (Thomson Reuters/EBIA)
$57 Billion in Annual Health Care Savings Possible If Consumer-Directed Health Plans Were 50% of All Employer-Sponsored Insurance
"Enrollment is increasing in consumer-directed health insurance plans, which feature high deductibles and a personal health care savings account. [The authors] project that an increase in market share of these plans -- from the current level of 13 percent of employer-sponsored insurance to 50 percent -- could reduce annual health care spending.... That decrease would be the equivalent of a 4 percent decline in total health care spending for the nonelderly." (Health Affairs)
[Guidance Overview] Considerations for Employers Having Both an HSA Program and Health Flexible Spending Accounts
"Special considerations apply if you currently offer health flexible spending accounts ('health FSAs') that allow up to an extra 2-1/2 months after the end of the plan year in which participants can spend their money (known as a 'grace period'). If you are considering offering an HSA in 2013, you may want to take steps now to inform your employees who currently participate in your health FSA (or the health FSA of their spouse, if the employee is eligible to be reimbursed under that FSA), that if the health FSA contains a grace period, they need to have spent all of the money in their health FSA (even if they have not yet submitted the claim or been reimbursed) on or before December 31, 2012 if they want to qualify for an HSA for the entire 2013 taxable year." (McKenna Long & Aldridge LLP)
Characteristics of the Population with Consumer-Driven and High-Deductible Health Plans, 2005-2011 (PDF)
"Generally, the population of adults within high-deductible health plans (HDHPs) and traditional health plans is split 50-50 by gender. In contrast, consumer-driven health plan (CDHP) enrollees were more likely to be female in 2010 and 2011. CDHP enrollees were roughly twice as likely as individuals with traditional coverage to have a college or post-graduate education. HDHP enrollees were also more likely than traditional-plan enrollees to have a college or graduate degree." (Employee Benefit Research Institute)
Enrollment in Health Savings Accounts Increasing Dramatically
"Enrollment in these specialized tax-deductible, tax-free accounts has exploded: In March 2005 there were slightly more than 1 million accounts; a year ago there were 11.4 million, according to America's Health Insurance Plans, a trade group. Since then, the growth has been exponential, with Fidelity Investments saying its HSA business grew 61 percent in a year." (Reuters)
[Opinion] Consumer-Driven Health Care's Fatal Flaw: Non-Transparent Prices
"The possibility that the Supreme Court will strike down all or part of the Affordable Care Act has given new life to Republican calls to put market mechanisms to work in holding down health care costs. The public is certain to hear lots more about it on the campaign trail later this year. There's one big problem, though. Markets cannot work when consumers and patients have almost no information about the prices they pay for health care." (The Health Care Blog)
Health Exchanges Already Offering Large Companies Cost Control
"While state insurance exchanges are mandated by healthcare reform to be up and running by 2014, some private health insurance exchanges that target corporations are already doing business, suggesting that healthcare benefits may follow retirement benefits' shift to a defined-contribution model." (Treasury & Risk)
Nearly Half of All Employer Plans Have Zero In-Network Deductibles
"[The 2012 Medical Plan Trends Report] revealed that the difference between in- and out-of-network costs employees face has increased substantially since 2011. For example, out-of-network primary care physician co-pays are now 53% higher than in-network co-pays, compared to a difference of just 16% in 2011." (HighRoads)
Health Care Reform Impacts CDHPs at Many Points
"'Health care reform's impact on CDHPs has so far encouraged more employers to consider account-based plans to lessen consumers' insulation from actual health care costs[.]'" (Society for Human Resource Management)
[Opinion] Analysis: Health Care Myths and Realities -- Seeking the Truth about High-Deductible Plans
"Insurers regularly trot out studies, which they themselves conduct, as part of their ongoing campaign to persuade employers that haven't yet joined in, to get with the program. Earlier this month, for example, my former employer released the results of the 'Sixth Annual Cigna Choice Fund Experience Study.' A press release crowed that, 'When American workers engage in health-smart habits offered in consumer-driven health plans, they reduced their health risks and lowered their total medical costs an average of $9,700 per employee over a five-year period.'" (iWatch News)
Businesses Turn to High Deductible Medical Insurance
"Employers in Inland Southern California and across the nation have tried to shield themselves from soaring medical insurance premiums by shifting more of the cost to their workers." (The Press-Enterprise)
Cigna Choice Fund Consumer-Driven Health Plans Experience Study (PDF)
"Over five years, Choice Fund plans could save up to $9,700 more peremployee when compared to traditional plans." (Cigna)
Employer and Worker Contributions to Health Savings Accounts and Health Reimbursement Arrangements, 2006?2011 (PDF)
"This report presents findings from the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, as well as earlier surveys, examining the availability of health reimbursement arrangement (HRA) and health savings account (HSA)-eligible plans (consumer-driven health plans, or CDHPs). It also looks at employer and individual contribution behavior." (EBRI.org)
With a Growth in Consumer-Directed Plans, HSAs Rocket in Usage
"Among 600,000 [Bank of America] accounts, HSAs are the fastest growing, approaching 200,000 user accounts and more than $300 million in account balances." (Employee Benefit News)
Patients in Consumer-Driven Health Plans Show More Cost-Conscious Behavior (PDF)
"[T]hose in [consumer-driven health plans] were more likely to say they had checked whether their plan would cover care; asked for a generic drug instead of a brand name drug; talked to their doctor about treatment options and costs; talked to their doctor about prescription drug options and costs; developed a budget to manage health care expenses; checked a price of service before getting care; and used an online cost-tracking tool." (Employee Benefit Research Institute)
When Health Plans Go High Deductible
"The goal is to give consumers more incentives to not spend on the care they don't need, but these plans often raise concerns that subscribers will cut back on the care that they do need, too. A new study from a team of Harvard researchers explores how health insurance plans with high deductible effect the care that families do, and don't, seek." (The Washington Post; free registration required)
How a Defined Contribution Approach Can Help Employers Control Health Costs and Give Employees Wider Range of Options
"[I]n a defined contribution approach, the employer designates a fixed amount of money, or a defined contribution, to each employee. Employees then use that money to purchase individual health care insurance, selecting products that specifically meet their needs and those of their dependents." (Smart Business Network Inc.)
More Consumers Choosing High-Deductible Plans
"Not everyone enrolled in a high-deductible health plan is eligible for a paired health savings account, but even those who are often skip it. As of 2011, 38% of those with a high-deductible plan, or an estimated 7.3 million people, were eligible but did not open an account, according to the EBRI." (American Medical Association)
Findings from The 2011 EBRI/MGA Consumer Engagement in Health Care Survey
"A significant portion of the population reported using a smartphone, and 1 in 5 reported using a tablet. Among them, about one-quarter reported using an app for health-related purposes. Among those not using an app, nearly one-half were interested in using one." (Empoyee Benefits Research Institute)
Sending Out 2011 With a Rush on Flexible Spending
"Yet a surprising number of workers don't take part: Mercer's 2011 National Survey of Employer-Sponsored Health Plans shows that healthcare spending accounts are offered by 85 percent of employers, yet have an average employee participation rate of just 22 percent." (Reuters)
Beyond Rational Thinking: Using Behavioral Economics to Improve Workforce Health and Organizational Outcomes
"Behavioral economics can play an important part in an organization's open-enrollment process where a key goal is to steer employees toward more cost-effective health plan options. . . . An effective technique [is] to encourage employees to select one of the better health plan options is known as 'choice architecture' -- how the various options are framed, ordered and described." (Sibson Consulting)
Findings from the 2011 EBRI/MGA Consumer Engagement in Health Care Survey (PDF)
"The survey finds continued growth in consumer-driven health plans: In 2011, 7 percent of the population was enrolled in a CDHP, up from 5 percent in 2010." (Employee Benefit Research Institute)
Health Savings Accounts and Account-Based Health Plans
"This report outlines research findings and statistics about HSAs in the following areas: enrollment, age and income distribution, health status, premiums, preventive care, and account information." (AHIP Coverage)
[Opinion] Defined Contributions Define Health Care Future
"The market today is dominated by 'defined-benefit' plans, under which companies determine a set of health-insurance benefits that are provided for employees. These will gradually be replaced by defined-contribution plans, under which companies pay a fixed amount, and employees use the money to buy or help pay for insurance they choose themselves." (Bloomberg L.P.)
Implementing an HSA with HDHP: How Hard Could it Be?
"This post explores some of the general eligibility questions we are asked most frequently. It is the first in a series on HDHP/HSA arrangements, and we hope that together these posts will provide a useful overview on implementing an HDHP/HSA arrangement." (Verrill Dana, LLP)
Companies Go to High-Deductible Health Plans
"In plans where deductibles are covered by a health savings or health reimbursement account, workers have to pay an average deductible of $1,908, a 2011 Kaiser survey showed. Traditional health plans, on average, have deductibles well under $1,000." (USATODAY.com)
Surprising Decline in Consumers Seeking Health Information
In 2010, 50 percent of American adults sought information about a personal health concern, down from 56 percent in 2007. Use of print sources -- books, magazines and newspapers -- dropped by nearly half, to 18 percent, accounting for most of the decline. (Center for Studying Health System Change)
Health Plans Must Prepare for Consumer-Oriented Business Model
"Underwriting and risk management -- the traditional competencies of health plans -- won't be nearly as important as consumer-oriented product design, segmentation, and branding. Today, though, 'health plans have little expertise in those areas,' says Howard Lapsley, a partner at Oliver Wyman . . . ." (HealthLeaders Media)
[Guidance Overview] Proskauer ERISA Litigation Newsletter, November 2011
"[W]e review the Department of Labor's decision to re-propose a controversial regulation expanding the definition of an ERISA fiduciary. . . . [Additional commentary addresses] high deductible health plan/health savings account re-design and planning for open enrollment; the constitutionality of the individual mandate under the Affordable Care Act . . . the Supreme Court's Decision in CIGNA Corp. v. Amara . . . and reconciling obligations relating to the production of documents under ERISA ? 104(b)(4) versus the claims regulation . . . ." (Proskauer)
San Francisco Legislators Near Deal With Mayor to Curb Health Reimbursement Arrangements
"[The proposed change] would require funds employers contribute to HRAs to satisfy the health care spending law to be available for 24 months after the contribution. For terminating employees, the account balance would have to be available for 90 days after the employee leaves. . . . [Under current law, employers] can design their HRAs so that unused funds revert to [the employer] at the end of the year." (Business Insurance)
[Guidance Overview] FAQ on HSAs: The Basics of Health Savings Accounts
"HSAs can be confusing, and, many people wonder if this approach to health insurance is good for them. Here are some answers to frequently asked questions . . . ." (Kaiser Health News)
Transparent Cost Network: A Practical Consumer-Driven Health Care Solution
"In no other area of our economy do consumers receive services where they do not know the cost in advance and are not able to make comparisons to alternative suppliers. As a result, healthcare provider costs have remained immune from the economic forces that could control them. This immunity has contributed to greatly increasing provider costs, a major component in today's rising healthcare costs." (Milliman, Inc.)
High-Deductible Health Plans More Common as Employment-Based Option
"At small companies, the high-deductible option, often served with a tax-preferred savings account, may be the only choice. But larger firms are more likely to offer at least one traditional PPO or HMO plan alongside a high-deductible choice." (NPR)
Employer-Sponsored Health Insurance Likely to Continue Current Course in the Near Term
"Large, private-sector employers in virtually all 12 communities [studied for the report] are likely to continue shifting costs to employees by adopting benefit designs that accommodate greater cost sharing. As part of this strategy, consumer-driven health plans are likely to become the only health benefit offered in more instances." (Center for Studying Health System Change)
Consumers May Have More Control over Health Care Costs Than Previously Thought
"The historic RAND Health Insurance Experiment found that patients had little or no control over their health care spending once they began to receive a physician's care, but a new study shows that this has changed for those enrolled in consumer-directed health plans." (RAND Corporation)
How Will PPACA Affect Consumer-Driven Health Care?
"In addition to detailing the PPACA-related changes to HSAs, FSAs and HRAs, [the author] includes updates on deductibles, out-of-pocket costs and tax-related information." (Council for Affordable Health Insurance)
Health Savings Accounts Lucrative for Insurers, Costly for Consumers
"America's Health Insurance Plans . . . warned in a recent report that the rapid growth of HSAs will be hurt unless Congress exempts them from the 80 percent requirement ? or abolishes the threshold altogether. HSAs are available only to people enrolled in high-deductible plans. They are also exceedingly profitable for insurers." (TucsonSentinel.com)
Orange County, Florida, Delivers Benefits Messages About Its Consumer-Driven Health Plan to Employees on TV Channel
"[T]he county developed an hour-long video to walk employees through [implementation of the new health plan design] . . . [and] worked with Orange TV, the county's 24-hour access channel that offers programming produced by city, county, state and federal agencies and their employees." (Employee Benefit News; free registration required)
January 2011 Census Shows 11.4 Million People Covered by Health Savings Account/High-Deductible Health Plans (HSA/HDHPs) (PDF)
"[E]nrollment in HSA/HDHP coverage in the group market rose to 9.1 million in January 2011, up from 8.0 million in January 2010." (America's Health Insurance Plans)
[Guidance Overview] 2012 Minimums and Maximums for Health Savings Accounts and High-Deductible Health Plans
"The IRS calculates the annual adjustments using the 12-month period ending March 31." (The Segal Group, Inc.)
Why Some Workplace Clinics Charge Different Rates for Identical Services
"Some employers have concluded that employees enrolled in high-deductible health plans that are linked to a health savings account can't be given the same price break on workplace clinic services that their coworkers in regular PPOs and HMOs receive. Unless they charge workers in high-deductible plans the full market value of services, these employers worry, they risk running afoul of IRS rules." (NPR)
Characteristics of the CDHP Population, 2005?2010 (PDF)
"This article examines the population with a consumer-driven health plan(CDHP) and how it differs from the population with traditional health coverage." (Employee Benefit Research Institute)
Program Perspectives on High Deductible Health Plans (PDF)
"This issue of Program Perspectives highlights HDHP data for private industry workers, including participation and comparisons between deductibles for traditional plans and HDHPs." (U.S. Bureau of Labor Statistics)
Consumer-Directed Health Care: The Employer Perspective (PDF)
"This Critical Issue Update identifies changes in plan design since CDHPs were first introduced." (National Business Group on Health)
Increased CDHP Use not Likely to Have Adverse Effects
"According to the study report, 'How Do Consumer-Directed Health Plans Affect Vulnerable Populations?,' published in the Forum for Health Economics & Policy, these effects include significant reductions in overall spending that increase with the level of the deductible . . . ." (PLANSPONSOR.COM)
High Deductible Health Care Coverage: Snapshot of Some Mixed Evidence
"The large body of evidence examining the various components of CDHPs1 may help inform policymakers who are exploring the advantages and disadvantages of offering high deductible plans within states' health insurance exchanges. While HDHPs are structured in such a way to promote cost savings and protect against the financial burden of a catastrophic medical event, the evidence on the success of these goals is mixed." (Changes in Health Care Financing & Organization Initiative)
High-Deductible Health Plans Cut Spending but Also Reduce Preventive Care
"Interestingly, the drop in preventive care occurred even though high-deductible plans waive the deductible for such care." (RAND)
[Opinion] High-Deductible Plans: When Spending Less on Health Care Isn't Always Better
"[R]edesigning insurance in a way that actually lowers spending and, by the way, promotes good health, is a lot more complicated than merely giving people 'more skin in the game,' as conservatives like to put it. A new study by researchers affiliated with the Rand Institute suggests why." (Henry J. Kaiser Family Foundation)
Health Care Spending and Preventive Care in High-Deductible and Consumer-Directed Health Plans
"The HDHPs or CDHPs with at least a $1000 deductible significantly reduced healthcare spending, but they also reduced the use of preventive care in the first year. This merits additional study because of concerns about enrollee health." (HCPLive; free registration required)
Employer and Worker Contributions to Account-Based Health Plans, 2006?2010 (PDF)
"In 2008, 37 percent of workers reported an employer contribution of $1,000 or more. By 2010, it was down to 28 percent." (Employee Benefit Research Institute)
Mercer Predicts HSA and High-Deductible Plan Limits Will Go Up
"The predicted change for HSA contributions is 1.6 percent for both individuals ($3,100 in 2012 vs. $3,050 in 2011) and family coverage ($6,250 in 2012 vs. $6,150 in 2011). For high-deductible health plans, Mercer anticipates the out-of-pocket maximum will jump 1.7 percent for both individuals ($6,050 in 2012 vs. $5,950 in 2011) and family coverage ($12,100 in 2012 vs. $11,900 in 2011)." (Workplace Management: free registration required)
A Common-Sense, Six-Step Approach to Launching a New Benefits Program
"For once, we weren't trying to innovate, iterate or invest in something new. We simply wanted to successfully launch a consumer-driven health plan. We thought it would be easy . . . ." (Employee Benefit News; free registration required)
Newly Introduced Bill Would Repeal Limits on FSAs, HSAs
"The measure repeals the cap on $2,500 cap on [FSA] contributions, and repeals the provision that requires patients using [HSAs] or FSAs to have a prescription from their doctor before they purchase over-the-counter medication." (PLANSPONSOR.COM)
[Guidance Overview] New Guidance Permits Use of Debit Cards to Buy OTC Drugs after January 15
Excerpt: "Notice 2011-5 . . . modifies the government's earlier position and allows health FSA and HRA debit cards to be used after January 15, 2011 to purchase prescribed OTC drugs or medicines if certain requirements are met. The [following] purchases can made by debit card, and considered fully substantiated at the point-of-sale: . . . " (Deloitte via BenefitsLink.com)
Employer Provision of Medical Cost and Quality Information to Enable Informed Decisions
Excerpt: "[A] shift is occurring and transparency in health costs and quality are becoming available, primarily due to the increasing popularity of consumer-directed health plans and high-deductible health plans. These plans put more responsibility for healthcare management in the hands of the insured employees.' (Human Resource Executive Online)
Findings from the 2010 EBRI/MGA Consumer Engagement in Health Care Survey (PDF)
44 pages. Excerpt: "[Consumer-driven health plan] enrollees were more likely than traditional plan enrollees to report that they had the opportunity to fill out a health risk assessment, and equally likely to report that they had access to a health promotion program." (Employee Benefit Research Institute)
Large Employers Said to Comprise Fastest-Growing Market for High-Deductible/HSA Plans
Excerpt: "According to a survey by [America's Health Insurance Plans], the number of large employers offering these plans increased by 33 percent between January 2009 and January 2010." (Workforce Management; free registration required)
Consumer Driven Health Plan Growth Slows as Enrollments Decline
Excerpt: "[Consumer driven health plans] no longer cover more employees (12.4%) than HMO plans (15.4%) . . . ." (Wolters Kluwer)
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