Workers Need Support In Using Consumer-Driven Health Plans
Many employees who have moved from traditional health plans to consumer-directed account-based health plans (ABHPs) are dissatisfied with their choice, largely because they are not fully aware of how to maximize the tax advantages and savings features of these accounts, according to a survey by professional services firm Towers Perrin.
Researchers surveyed 1,000 employees who are currently enrolled in ABHPs or who have the option to enroll but have chosen to remain with a traditional plan. The findings revealed that ABHP members tend to be less content with their plan than members of traditional plans. Half of the ABHP participants surveyed said they are satisfied with the protection the plan provides against the risk of major health care costs, compared with 65% of enrollees in traditional plans. Similarly, 44% of respondents enrolled in ABHPs—but 63% of those in traditional plans—indicated they are satisfied with their access to affordable health care and the assistance their plan provides in finding quality doctors and hospitals.
Despite having chosen the consumer directed plan option, ABHP participants are failing to take full advantage of the plan features that can help them better manage risk, researchers observed. When asked about their savings habits, 52% of the ABHP members surveyed reported using the account primarily to pay for current health care expenses and said they do not expect to have money left over at the end of the year. By contrast, just 29% of account holders said they try to reserve account money for future financial protection, and 16% reported using the account to save for health care expenses in retirement.
“Contrary to the designed purpose of ABHPs, employees do not appreciate the long-term potential these savings accounts hold and remain mired in the old ‘use it or lose it’ mentality of flexible spending accounts,” said Dave Guilmette, managing director of Towers Perrin’s health and welfare practice.
Guilmette recommended that employers take steps to improve their employees’ experiences with consumer-driven plans. He advised plan sponsors to take care in designing ABHPs, make an effort to gain and preserve employee trust through transparency and ongoing communication, and build employees’ confidence in managing their health care and finances by providing the necessary tools and resources.
