More Employers To Offer Only Consumer-Driven Health Plans in 2014
More than one in five, or 22%, large employers plan to offer their workers only consumer-driven health plans in 2014 as a cost-control strategy, according to a recent survey of 108 employers by the National Business Group on Health, Modern Healthcare reports. By comparison, 19% of employers offered only CDHPs this year, while about 7% did so in 2009.
According to Modern Healthcare, the appeal of CDHPs for employers is that high-deductible plans are less costly than more-traditional plans, like preferred provider organization plans. Data released last week from the Kaiser Family Foundation show that the average cost of family coverage through CDHPs is nearly $1,500 less per employee than PPOs.
That cost differences will be particularly important to employers in 2018, when they could face penalties for offering plans with high premiums.
According to the survey, some employers believe that their former employees who are continuing health coverage through COBRA and retirees will choose to obtain health insurance via the ACA's exchanges (Geisel, Modern Healthcare, 8/28).
The survey also found that 41% of respondents believe consumers in COBRA plans might consider coverage in the public health exchanges more cost effective. In addition, 26% of respondents believe that some pre-65 retirees might choose to obtain coverage through the exchanges (NBGH release, 8/28). According to Modern Healthcare, a proposed rule from the Internal Revenue Service allows those with COBRA coverage to choose policies offered in public exchanges, where federal subsidies will be available (Modern Healthcare, 8/28).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.