NAHU: Account-Based Plans Make Progress

CDHC plans usually combine high-deductible health coverage with health savings accounts, health reimbursement arrangements or other personal health accounts. Plan members can use the personal health accounts to cover routine health care costs.

Some CDHC plans use traditional preferred provider organization networks and network discounts, but others do without PPO networks or encourage members to negotiate lower rates from out-of-network providers.

CDHC plans seem to be especially popular with smaller, price-conscious employers, and PPO-based plans seem to be more common than other types of plans, Main said.

For now, "the biggest barrier to a more consumer-based health benefits approach is education," Main said. "In order for CDHC to really take off, health plans must build awareness among employers and producers on the value of consumerism and back it up with competitively priced CDHC plans."

CDHC companies also may have to make more of an effort to educate employers about the value of CDHC plans, Main said.

"If you look at most major insurance companies, most of them are offering CDHC plans but haven't figured out how to address the concerns of the members," Main said. "Insurance companies have traditionally worked very hard to embrace brokers and the plan sponsors but have not embraced the member."