Precept Employee Benefits Blog

After the recent release of a few different healthcare surveys regarding Consumer Driven Health Plans (CDHP) and their “modest” impact on benefits cost trend, I have been fielding calls from benefit managers seeking my opinion on CDHPs. As a result, I thought it would be wise for me to blog some of my answers and observations on these topics.

• CDHPs and “High Deductible” health plans are not the same thing.
• Large or “jumbo” self insured employers have the most to gain (financially) by introducing a CDHP, but only if they entice or force a sizeable enrollment in the plan.
• A CDHP shifts costs from employer to employee by increasing deductible/out of pocket costs and making participants responsible for managing their healthcare purchases.
• When voluntarily offered, CDHPs typically attract the young and healthy.
• A CDHP all by itself does not improve the health of its participants.
• Plan design, wellness incentives, access to cost and outcome information and communication tools are “key” elements to a robust CDHP offering. 

 For small to mid-size employers:

• A CDHP with all the bells and whistles does not exist in a fully insured environment, although a few insurers have “modified” CDHP offerings with some tools.
• If your rates are “pooled” or “book rated”, there is no improved financial impact with insurance carriers for having a healthier or wiser population.

While this is not a comprehensive write up on CDHPs, I believe it answers some of the recurring questions I receive.