Consumer-driven health plans have been a polarizing topic throughout their development and the plans have sparked many debates as to the strategy's effect on cost and quality outcomes.
A new study by Milliman, in partnership with the National Business Group on Health, analyzes six employer programs with approximately 30,000 employees enrolled in some type of CDHP. The study finds that the savings that are gained from CDHPs come from the reduced utilization and higher cost sharing that high-deductible health plans promote.
It also appears that a healthier employee profile tends to enroll in the CDHP, adding to these apparent savings. But Milliman notes that this trend is in sync with the dawn of HMOs and managed care. Early adopters of new health care options are typically the healthy.
The results show that CDHPs are creating modest (1.5%) savings for employers. These results reinforce the need for better consumer information. Actual savings are likely to increase when people have the patient education resources they need to truly compare and shop for healthcare based on quality and cost, says Milliman. Until better information is available to help plan members fully tap the potential of such plans, true savings will remain unclear.
Whether or not employers are sold on the value of CDHPs may still be up in the air, but employers considering such a plan can relax knowing the study found CDHPs are reliable. The plans are performing as predicted by traditional actuarial analysis, which should alleviate some concerns about their adoption, says Milliman.
