Experts predict that consumer-directed health plans will surge

The number of employees in consumer-directed health plans could nearly triple in the future as employers struggle with the costs of providing health benefits, according to a study by the National Business Group on Health and Watson Wyatt Worldwide.

The survey's researchers estimate that enrollment in consumer-directed health plans could reach almost 480,000 workers this year--a dramatic increase from the approximately 170,000 enrolled during 2003. The survey received responses from 159 larger-sized employers (more than 2,500 employees) and nine health plan providers. Nearly one-third of the respondents reported that they expect to offer a consumer-directed health plan option to workers over the next 12 to 18 months--compared with 21 percent that currently offer such a plan. However, only a small number of employers (less than 2 percent) offer the consumer-driven plans as the sole option to their employees, the survey found.

"We continue to hear from employers that they need their workers to take greater responsibility in making health care decisions to be successful at reducing health care costs," said Helen Darling, president of the Washington, D.C.-based National Business Group on Health. "Consumer-driven health plans allow organizations to give their employees much more flexibility to make decisions about their health care coverage and make them more responsible and conscious of the actual costs."

According to findings from the survey, most consumer-driven plans feature cost-sharing provisions, high deductibles and health savings accounts (HSAs). Many help employees become educated health care consumers. The creation of HSAs under the new Medicare law, which Congress passed in November, could also increase the number of employers that offer high-deductible health plans to workers, the survey revealed.

By pairing the savings accounts with high-deductible health plans, employers hope to encourage employees to become more price conscious when selecting health care providers and treatments.

"HSAs may be the added ingredient that makes consumer-directed plans right for more organizations," said Ted Chien, global director of group benefits and health care consulting at Watson Wyatt.

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