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Popularity Of Consumer-Driven Health Plans Continues To Grow

05/04/12

  01:05:57 pm, by MedBen5   , 233 words,  
Categories: Health Plan Management

Popularity Of Consumer-Driven Health Plans Continues To Grow

Reuters recently reported on the surge in popularity for consumer-driven health plans, which offer lower premiums and greater participant control of medical care funds in exchange for higher deductibles.

Currently, 59% of companies with 1,000 or more employees offer account-based coverage options, such as flexible spending accounts and health reimbursement arrangements. That’s up from 53% last year, according to a survey by Towers Watson and the National Business Group on Health.

The survey also revealed that when employees have a choice between CDHPs and more traditional plan options, an increasing number are going the personal account route. This year, 27% of eligible employees are enrolled, a 35% jump from 2011.

CDHPs continue to gain in popularity for multiple reasons. Certainly, the reduced premiums appeal to employers and employee alike, as does the ability to pay for health care expenses with pre-tax dollars. And with the passage of health care reform, higher deductibles offer businesses a way to avoid the Affordable Care Act’s excise tax on benefit-rich “Cadillac” health plans.

MedBen has administered CDHPs for over a decade. In addition to a full range of account options, we provide seamless plan integration and account coordination. Plus convenient online services that allow easy account management, and tools to make wise health care consumer decisions.

To learn more about the benefits of consumer-driven health plans, we invite you to contact MedBen Vice President of Sales and Marketing Brian Fargus at 888-627-8683.

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