New research shows employers that adopt consumer-driven health plans favor health saving accounts as the key funding option for those plans, reports Aon Consulting and the International Society of Certified Employee Benefit Specialists.

From 2006 to 2009, the number of employers providing HSAs jumped from 48% to 56%, while companies offering health reimbursement arrangements dropped from 43% to 35%. Overall, 56% of employers that implement a CDH plan use HSAs, 35% prefer HRAs and 9% use both models.

The analysis is based on survey results of 370 employers polled in the summer of 2009. In the issue brief titled “CDH plans shift to HSAs”, researchers report that 44% of employers offer a CDH plan to their workers, a slight fall from 2008 (45%) but up from 28% in 2006.

“HSAs have grown in popularity relative to HRAs since HSAs are considered more advantageous to the employee than an HRA,” says John Zern, health and benefits practice director with Aon Consulting. “With an HSA, employees can contribute their own money, the account is owned by the employee and is portable at termination of employment. HSAs also have great tax advantages,” he adds.

The survey also found that 83% of employers offer the HSA or HRA as an optional plan, while 17% have moved toward offering only a CDH plan option to their workers.

“Although only 17% of employers offer a total replacement CDH program, we expect that number to increase next year,” says Bill Sharon, national CDH care practice leader with Aon Consulting. “In response to the economic downturn and double digit health care cost increases, employers are becoming more aggressive in managing their health care costs. Implementing a total replacement CDH program is one of the leading health care strategies available to employers,” adds Sharon.

Other key findings from the survey included:

• More employers who offer the HSA plan are contributing money to the plan (66% versus 60% last year). The breakdown of this group is as follows: a flat dollar amount of less than $500 per person (15%), a flat dollar amount of $500 or more (45%), and a matching employer contribution (6%).

• Employers offering an HRA plan make a wide variety of contributions to the account for a single employee: 4% provide less than $300; 11% provide between $300 and $499; 49% provide between $500 and $799; 1% provide between $800 and $999; and 34% provide $1,000 or more.

• The levels of HRA and HSA deductibles break down as follows: 4% of employers have an individual deductible of less than $1,000; 33% have a deductible between $1,000 and $1,499; 31% have a deductible between $1,500 and $1,999; 13% have a deductible between $2,000 and $2,499; and 19% have a deductible of $2,500 or more.