Consumer Driven Health Plan Growth Slows;
Costs Surpass HMOs
Consumer Driven Health Plans (CDHPs) in the U.S. experienced continued growth this year - albeit at a slower rate than in 2009 and 2010.
A CDHPs grew at a rate of 13.9 percent this past year (about two-thirds of the 2010 rate) to 22.9 percent of plans offered and cover more employees (17.3 percent) than Health Maintenance Organization (HMO) plans (11.9 percent), according to Bill Stafford, UBA Vice President, Member Services. The Northeast region of the country had the largest concentration of CDHPs (31.3 percent), followed by the Southeast region (27.4 percent). The average cost increase for all CDHPs at 7.6 percent was slightly lower than that of the average of all plan types, which increased 8.2 percent this year.
Employers continue to offset the higher out-of-pocket costs of CDHPs by offering employees a health reimbursement arrangement (HRA) or a health savings account (HSA) and contributing funds. The 2011 UBA Health Plan Survey found 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).
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. This year experienced an increase (2.1 %), albeit less than the average 8.2 percent increase of all plans