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CHDPs Save Money Now -- And Later


  05:15:09 pm, by MedBen5   , 217 words,  
Categories: News, Health Plan Management

CHDPs Save Money Now -- And Later

A recent study by RAND Corp determined that a rise in the use of consumer-driven health plans could signficantly reduce U.S. health care costs, The Hill reports.

CDHPs currently account for about 13% of all health care coverage provided by employers, the study says. But if the plans’ market share rose to 50%, health care costs in the United States could drop by $57 billion annually.

The study’s authors did express concern as to whether CDHP savings would only be realized in the short term. But on John Goodman’s Health Policy Blog, Greg Scandlen cites some earlier research:

“First year savings are the least of it. The real value of consumer driven approaches is that trend is reduced and the savings mount up over time. The 2009 study by the American Academy of Actuaries, for one, found that the trend over time for CDHPs ranged from 12% to 17% lower than for traditional plans…

“Importantly these savings do not accrue solely to employers. The study looks at out-of-pocket costs as well as premiums, and concludes that families themselves reduced their costs by over 20%.”

At MedBen, our experience has shown that companies offering CHDPs can maintain long-term savings for employers and employees without sacrificing needed medical services. To learn more, please call Vice President of Sales and Marketing Brian Fargus at 888-627-8683.

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