Large Employers Flock to Consumer-Driven Health Plans

The trend is likely to continue, with 48% of employers of all sizes expecting to offer a CDHP in the next five years.

"Our stagnant economy combined with the uncertain fate of the Affordable Care Act has forced employers of all sizes to seek innovative ways to reduce what they spend to cover their employees. Given the cost savings inherent in the consumer-directed model, it's clear that employers — especially our largest ones — are increasingly looking to CDHPs to do that," said Karen Greenrose, AAPPO president and CEO. "In today's tough environment, CDHPs — which are predominantly built on PPO networks — offer the affordability, choice and access that employers and consumers alike are looking for."

Of the 256 million Americans that the U.S. Census Bureau estimates have private or government health insurance, 204 million were enrolled in PPO-based plans, including point-of-service and consumer-driven plans. HMO enrollees represented the remaining 52 million (or roughly 19%).

"It's obvious that the CDHP/HSA model is filling a significant void in the marketplace," said Tennessee Representative and chairman of the House Education and Workforce Health Subcommittee, Phil Roe. "As a physician, I know that patients are demanding greater personal control over their health care decisions, and their employers want more affordable and manageable costs. CDHPs – and the PPO networks they are built on – are clearly meeting that demand."