Employees Unhappy with Consumer-Driven Health Plans

Consumer-driven health plans still have a long way to go to live up to their potential, according to a survey by Towers Perrin, an HR consulting company, and the problem doesn't seem to be the plans themselves.

Only 50 percent of surveyed employees in consumer-driven plans believed their coverage protected them against the risk of major health care costs — 15 percentage points lower than those in traditional plans.

But Towers Perrin found that employees' views of consumer-driven plans reflect the skill of companies in explaining the plans rather than specific plan features.

Consumer-driven plans combine high-deductible health insurance with a personal health account, like a health savings account, as they seek to give employees a greater financial stake in their own health-care decisions.

The employees surveyed by Towers Perrin included some enrolled in CDHPs and others with a CDHP option who instead chose a traditional plan. The survey found a large gap between the two groups’ attitudes.

Ron Fontanetta, a principal with Towers Perrins’ health and welfare practice, said the difference in employees’ views suggests companies are not doing a good job of educating their employees about the features of consumer-driven plans.

A few examples:

• Satisfied with how their plan prepares them for health-care expenses in retirement: CDHP employees, 22 percent; employees with traditional coverage, 30 percent.
• Think their health plan helps them find quality doctors and hospitals: CDHP employees, 44 percent; employees with traditional coverage, 63 percent. (This is a particularly startling finding since both plans typically offer the same network of doctors and hospitals.)
• Take advantage of health savings account features and their tax-exempt features: 29 percent said they try to save money in their HSAs to pay for future health expenses; only 16 percent said they use it to save for health expenses in retirement.

According to Fontanetta, the perceived difference between plans in finding doctors and hospitals shows companies aren't doing enough to dispel myths about consumer-directed care.

In an environment where more employers are reducing contributions to post-retirement welfare programs, don't let improper communication keep your employees from using these plans. The ability to put away money on a tax-advantaged basis for post-retirement welfare expenses is significant if properly communicated and understood.

Managed properly, consumer-driven plans are a super way to prepare for health costs in retirement and will continue to drive the way health care is offered.

Source: Workforce Management

As with any new or challenging benefit, communication is essential to its success. If you see your employees in this article, call us at 1-800-344-5677 and let us take on your communication challenges. Consumer-directed health care and the consolidation of health plans will continue to drive the way health care is offered.