Consumer Directed Health Care: Successful or Not
This interesting article on the experiences of companies who implemented consumer directed health care plans shows generally that although companies claim success with the programs, enrollment is generally low. Specifically:
- Less than 0.5% (about 170) of Microsoft Corp.'s 41,000 U.S. employees enrolled in an HSA-based plan that went into effect last January.
- At the 1,000 employee law firm of Preston Gates & Ellis, about 6% of the company's employees enrolled for the 2005 plan year. Enrollment for 2006, however, nearly doubled to 11%, and 96% of those who enrolled in 2005 stuck with the plan.
- SkyWest, Inc., the parent company of SkyWest Airlines, is in its second year with an HSA-based option. Of the 5,500 employees who have health coverage through the company, about 850 are enrolled in the HDHP - up from about 500 in 2005.
So what does this all mean? My sense is that employers are engaged in significant communication strategies to promote these plans. In addition, enrollment is generally low. However, as plan costs continue to skyrocket and these are passed along to employees, we'll likely see more enrolling after other employees have kicked the tires and worked out the kinks before them. This reminds me of enrollment in Section 125 plans - typically low enrollment.
Thanks to Janell Grenier at Benefitsblog for bringing this to our attention.