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It’s open enrollment time: Could consumer-driven health plans be the right choice for you?

Monday, November 12 at 10:50 AM

This Speakout has not been edited.

By John Martie

Each year, you receive the same e-mail alerting you that the open enrollment period for your health benefits has arrived. And every year, the e-mail goes from the inbox to the deleted box before you can say “deductible.” But this year, it might pay to actually read that email before you hit delete.

As health costs continue to rise, employers are beginning to offer new and innovative benefit options that have the potential to save you a lot of money. For example, consumer driven health plans (CDHPs), which typically combine low premiums with a higher deductible and an opportunity to save money tax-free for health care expenses, are showing up more frequently on employers’ menu of health plan options.

In fact, a survey conducted by Forrester Research last year estimated that more than a quarter of all employers will likely offer CDHP plans to their employees by 2010.

CDHP plans won’t work for everyone. Those who expect to incur high health care costs over the course of the year would likely prefer to pay higher premiums in exchange for more generous coverage. However, employees who would prefer lower premiums as they save their money tax-free for a “rainy day” may find that a CDHP is a wise investment, especially as employers continue to ask employees to cover a larger share of their health costs.

One of the major benefits of CDHP plans is that they are often coupled with new technologies that allow you to take more control over the health care dollars you spend. For instance, some insurers, including Anthem Blue Cross and Blue Shield, provide online personal health records, which allow consumers to “own” all of their health information and share it with doctors as they see fit. These records, which are automatically populated by claims data, give members and their doctors a complete picture of their health and have the potential to save them money by eliminating the need for unnecessary tests or repeat procedures.

In addition, a growing number of CDHP consumers are now able to go online and compare the cost and quality of various services offered by providers in their area. These tools help them to be better consumers of health care and have direct control over how and where their money is spent. By using these tools, a savvy consumer can save plenty of money by managing both their health and finances online.

CDHP plans certainly have a ways to go before they are on par with traditional plans in terms of membership, but the initial data is encouraging. A recent Anthem survey showed that 92 percent of members said they were likely to re-enroll in their CDHP plans.

The health care system is changing rapidly, and your employer is surely doing everything it can to keep up and make sure you have access to the most cost effective, high quality care available. With a little research, you have the chance to benefit. During this open enrollment period, arm yourself with the information you’ll need to navigate the sometimes complicated health care terrain. A little time may save you a lot of money.

John Martie is the president of Anthem Blue Cross and Blue Shield of Colorado.

READER COMMENTS

Take out the saving money "tax free" and you have a CDHP. The Health Savings Accounts portion of this cost more than they are worth. In order to get a high deductible plan which allows one to have a HSA it is necessary to pay nearly as much as for a full coverage plan. If the government would allow anyone to have a HSA then they would become very useful. As it stands now the cost of the plans with HSA are too high for most of us to afford so we simply put the difference from the high cost plan and our low cost plan into an everyday savings account and still are better off. We need to lobby our senators and congresspeople to relax the incredibly stringent rules on HSAs so that more of us can have the luxury of saving for our health needs "tax free".

Posted by art on November 15, 2007 07:39 AM