Consumer-Driven Healthcare: Increasing CDHP Enrollment Rates Will Be Tough Because “Low Hanging Fruit” Already Plucked
An article published in the Memphis Business Journal recently highlights the tough road ahead for those seeking to get more people enrolled in consumer driven health plans (CDHP). Younger, healthier and wealthier people have signed up for Health Savings Accounts (HSAs) but the majority of the insured are loath to try them out. Michael Dreve of UCL Financial Group explains why most of the low hanging fruit has already been plucked:
“When someone is told that under an HSA their doctor’s visit will cost them $180 for primary care and $230 for a specialist, they’ll typically retreat for the PPO and the $20 co-pay. What they don’t see, Dreve says, is the $1,300 the employer is paying each month. Brokers call it the ‘hidden paycheck.’”
Experts say that the key to winning over skeptical employees to HSAs and other forms of CDHP is education and flexibility. Specifically:
-Plant the seeds early with middle managers and explain the benefits and drawbacks of CDHPs
-Explain the positive financial implications of HSAs
-Where possible, have employers match employee funds placed into HSAs to increase acceptance
-Don’t force people into an HSA; show them the benefits of switching from a traditional managed care plan and let them decide what they want to do
