Employers Seek Ways to Increase Success of High Deductible Health Plans

May 16, 2016

Enrollment in high deductible health plans (HDHPs) is not meeting employers’ targets, despite the fact that a growing number are offering such plans as a cost saving measure. Over three-quarters of large employers (87%) reported offering HDHPs in conjunction with a health savings account (HSA) in 2016. Some employers have dropped traditional plans altogether and only offer HDHPs.

According to a recent article in Employee Benefit News (EBN), among the options employers have to increase employee interest are targeted communications to ensure that employees understand how such plans work and comparison tools that make it easier for employees to compare plans side by side.

Another element employers must consider if HDHPs are to reduce costs effectively is how the plans are structured and HSAs funded. Commenting on this point in the article, Trevis Parson, chief health actuary for Willis Towers Watson, noted that there should be a “meaningful difference” between the HDHP deductible and the employer’s contribution to the HSA. This can further encourage employees to utilize services appropriately to keep costs in check.

To read the complete article in EBN, click here.

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