More Employers Offer Consumer-Driven Health Plans to Employees, Says Aon Consulting and the International Society of Certified E

CHICAGO, June 27 /AllPayCards/ -- More employers are offering a consumer-driven health plan (CDHP)(1) to their employees in an effort to continue providing quality healthcare coverage, while controlling costs and introducing consumerism, according to Aon Consulting, the human capital consulting organization of Aon Corporation

A nationwide survey of 434 employers, conducted by Aon Consulting and the International Society of Certified Employee Benefit Specialists (ISCEBS), found that 28 percent currently offer a CDHP to their employees, which is up from 22 percent in 2005. In fact, this study shows that of those employers with a CDHP, 75 percent began offering the plan in 2005 or 2006, illustrating the relative newness of the concept and its growing appeal. Of the employers not offering a CDHP, 30 percent believe the concept is too new to offer now and will wait to learn from the experience of other employers before deciding to offer one.

"We expect more and more employers to offer a CDHP in the future," said Bill Sharon, senior vice president with Aon Consulting and co-author of the study. "Early CDHP results have been very positive. Employees like CDH plans, as we consistently see 90 percent satisfaction rates. Employers also like them because they are seeing a reduction in healthcare cost increases."

Employers Currently Offering CDHP

Companies are primarily offering a CDHP to introduce consumerism into the purchasing of health care (48 percent) and to help control rising healthcare costs (38 percent). This is similar to last year when controlling rising costs was the number one reason for CDHPs (43 percent), while introducing consumerism was second (39 percent). Additionally, the use of health reimbursement arrangements (HRA)(2) and health savings accounts (HSA)(3) have evolved since last year. Today, 43 percent of organizations with CDHPs offer an HRA, 48 percent offer an HSA and 10 percent offer both. This compared to last year when 65 percent offered an HRA, 15 percent offered an HSA and 15 percent offered both.

What's more, the study shows that of employers offering an HSA, 62 percent make contributions. Of those, 17 percent contribute less than $500 per person, 37 percent contribute $500 or more and 8 percent match each employee's contribution.

"It was a catch-up year in 2005 for the introduction of HSAs," Sharon said. "Although HSAs were first available in January 2004, most employers waited until regulations were issued and deferred implementation until early 2005. We expect both HRAs and HSAs to grow in the future as each plan type meets different employer needs."

Employers Not Currently Offering CDHP

More than 40 percent of employers without a CDHP are planning to offer one in the future. Specifically, 12 percent plan to offer one by 2007, while 32 percent are undecided on a date. The remaining 56 percent of employers are not seriously considering adding a CDHP at this time.

"We believe CDHPs will continue to grow in popularity and become one of the primary plans offered to employees, similar to the way HMO plans and PPO plans are today," Sharon said. "For some employers, CDHPs will be the only plans offered and the current HMO and PPO plans will be eliminated."

All Respondents
The survey also reported the following results from employers:
-- 48 percent believe a CDHP makes employees better, more efficient
consumers of health care.
-- 25 percent believe a CDHP leads employees to forego needed health care
to save money.
-- 39 percent believe a CDHP will be successful in controlling employers'
healthcare costs in five years, 30 percent believe it will fail in
doing so and 31 percent are unsure.

About Aon
Aon Corporation ( http://www.aon.com ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 46,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

Aon Consulting is among the top global human resources consulting firms, with 2005 revenues of $1.255 billion and 7,000 professionals in 120 offices throughout the world. Aon Consulting delivers integrated consulting solutions to help clients with employee benefits, human resources outsourcing, compensation, communication and management consulting.

About ISCEBS

The International Society of Certified Employee Benefit Specialists is a nonprofit educational association providing continuing education opportunities for those who hold the Certified Employee Benefit Specialist (CEBS), Compensation Management Specialist, Group Benefits Associate or Retirement Plans Associate designations offered through the CEBS program.

(1) Consumer-driven healthcare plans are account-based plans designed to
better engage the consumer in the purchase of healthcare services.

(2) Health reimbursement arrangements are plans with accounts owned and
funded by the employer.

(3) Health savings accounts are owned by the employee and are funded
either by the employee or with contributions from the employer.

Contact:
Sara Brownell, Aon Consulting, 312-381-5045, sara_brownell@aon.com
Stacy Van Alstyne, ISCEBS, 262-786-6710, Ext. 8217, stacyv@ifebp.org

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Source: Aon Corporation