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CCH® BENEFITS — 11/04/10

Consumer Driven Health Plan Growth Slows; Enrollments Decline For First Time

from Spencer’s Benefits Reports: Consumer driven health plans (CDHPs) in the U.S. experienced growth in 2010 but at a slower rate than in 2009, according to preliminary results released by United Benefit Advisors (UBA) from its 2010 UBA Health Plan Survey, which received responses from 17,113 plans and 11,413 employers.

CDHPs grew at a rate of 18.1% this past year (about half that of 2009), but they no longer cover more employees (12.4%) than HMO plans (15.4%), according to Bill Stafford, UBA vice president, member services. The Northeast region of the country had the largest concentration of CDHPs (26.7%), followed by the Southeast region (22.9%). The average cost increase for all CDHPs, at 7.3%, was slightly lower than that of the average of all plan types, which increased 8.0% this year.

Employers often offset the higher out-of-pocket costs of CDHPs by offering employees a health reimbursement arrangement (HRA) or a health savings account (HSA) and contributing funds. The 2010 UBA Health Plan Survey found the average employer contribution to an HRA was $1,481 (up from $1,310 in 2009) for a single employee and $2,857 for a family (up from $2,502 in 2009).

This year’s UBA survey also included these findings:

• The average increase for all plan types was 8.0%.
• PPO plans have nearly two-thirds of all enrolled employees (65.7%).
• The average employee contribution for plans with contributions for all plan types is $113 for single and $443 for family.
• More than three-fourths of all wellness plans (77.1%) offered a health risk assessment.
• Of all plans in the Northeast, 81.7% still have 100% coinsurance.
• 52.9% of all covered employees also elected to cover their dependents.

The 2010 UBA Health Plan Survey will be available to the public on November 1; the cost is $900 for UBA members and $1,800 for nonmembers. For more information, visit www.UBAbenefits.com.

State Differences

Significant differences in state-by-state average annual costs (AAC) for employee health plans are evident in the UBA survey, according to Garner Insurance Services, a UBA member.

The survey revealed that while Alaska has the highest AAC per employee at $10,881, the only other states with an AAC per employee in excess of $10,000 are all located in the Northeast:

• Connecticut $10,584
• New York $10,414
• New Jersey $10,295
• Massachusetts $10,229

This is in contrast to the least expensive states:

• Kentucky $6,342
• Arkansas $6,422
• Idaho $6,529
• Arizona $6,771

The AAC in California is $8,039, which is just 2% less than the national average of $8,211.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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