Envisioning 2.0

A December 2006 Center for Studying Health System Change study provides some interesting information about the health of the consumer-driven healthcare movement. The Center studied consumer uptake of consumer directed health plans (CDHPs) and found the following:

-“When offered a choice of plans, relatively few employees (19%) select CDHPs”

-While employer’s costs for administering CDHPs are similar to traditional insurance plans, employee expenses are significant.  “Annual deductibles and employee out-of-pocket costs are much higher, especially for routine office visits.”

-Employee enthusiasm for CDHP is much lower than employer’s.

This study indicates that employees are fearful and skeptical of CDHPs.  When they look at the numbers, they prefer to stick with traditional plans that shield them from the financial costs associated with medical care.  In addition, they may be unsure how they will handle the additional costs burdens associated with CDHP.

From a communications perspective, proponents of CDHPs have to do a better job of:

-Comparing and contrasting the cost-sharing options associated with CDHP to traditional plans.

-Explaining the benefits and drawbacks of CDHPs to older, sicker employees to encourage them to enroll and avoid adverse selection

While employers currently provide consumers with a lot of information to aid CDHP-related decision making, some have recommended that one-on-one, intensive education is necessary.  For example, Kevin Condon wrote an article last July in Employee Benefit News where he said that making an “impartial external advisor” available to provide financial advice to employees can be a cost-effective means of boosting participation in CDHPs.

Whatever the communications solution, employers and plan operators will have to closely examine the behavioral, psychological and informational barriers to CDHP uptake and devise methods of overcoming them.

This entry was posted on January 19, 2007 at 12:49 pm and is filed under Health Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.