Adoption of H S A's HRA's to Continue at Steady Clip
While only a small portion of companies currently offer their employees consumer-directed health plans, that number is gradually increasing as employers search for ways to confront their rising health care costs.
Overall, roughly 7% of employers now offer consumer directed health plans including health savings accounts and health reimbursement accounts. That is up 6% last year , according to survey data from the American Association of Preferred Provider Organizations.
But the number of employers providing consumer directed plans is expected to continue growing since 11% of the companies that do not offer such plans said that they are likely to begin doing so this year. This is because these companies are not looking to replace their existing plans, they are looking at it as a way to give employees an additional healthcare option. Offering an H S A or H R A also will help to lower the organization's benefit cost.
Large corporations are clearly leading the overall consumer directed charge. About 41% of employers with over 20,000 employees offer either an H S A or H R A.
The trend continues to be moving forward in smaller corporations and with individual coverages as well.
Ask us how we can strategize with your firm to implement a consumer driven health care program at your next renewal!
Source: Financial Week Magazine, March 10,2008