The body of knowledge concerning consumer directed health plans is increasing steadily, and unfortunately for advocates, it does not appear to include much in the way of good news.
First, the good news.
Employers love ’em. Premiums are lower. People with these plans are more likely to think about cost before seeking care. Those individuals with chronic conditions seem to be taking care of themselves about as well as folks enrolled in traditional plans.
Now the news that isn’t so good.
38% of those enrolled in these plans had delayed or avoided getting any type of health care because of cost.
Enrollment is essentially stagnant, with about one percent of working-age employees enrolled in these plans this September, about the same as last September.
CDHP enrollees are no more likely to have been uninsured before enrolling than those folks in traditional plans. (This addresses the hope expressed by some CDHP advocates that the plans will decrease the ranks of the uninsured)
The (well-respected) Employee Benefit Research Institute reports that almost half of the folks who have CDHP-type plans have less than $500 in their savings accounts. Of those who have not contributed, 44% said they didn’t because they could not afford to.
So, we have about a quarter million employees, many with families, who are enrolled in these plans, have contributed little to their deductibles, and can’t afford to. Put another way, they are essentially uninsured for most of the deductible amount.
Although those enrolled in CDHPs were more likely to seek information about costs than people in traditional plans, their plans were much less likely to provide that kind of information than traditional plans.
The net – consumer-driven health care is a great idea. And nothing more. Yes, proponents say this is a new concept that will take time to mature. In part they are right. But in part they are not – high deductible plans are nothing more than the major medical plans popular in the seventies and eighties. And we know how well those turned out.
Thanks to FierceHealthcare for the tip, and for those who want all the gory details, here they are.
You have great information on here, I am taking a class actually called Managed Care.
I am writing a paper for a college class and I wonder how you would feel if I use some of your information, of course with the proper citations, credit and links to your web-blog.
Would that be ok with you?
Everytime I search my topic your blog comes up and the information is so great.
Can you see my e-mail address? Please let me know.
Thanks!