By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    FDA Approves Diabetes Pill
    May 2, 2011
    Patient Gets Drunk on Hand Sanitizer
    June 20, 2011
    Cultivating Health Improvement
    July 20, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The Coming Revolution in Consumer Driven Care
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > The Coming Revolution in Consumer Driven Care
Health Reform

The Coming Revolution in Consumer Driven Care

Greg Scandlen
Last updated: September 17, 2013 8:15 am
Greg Scandlen
Share
5 Min Read
escher
SHARE

From time to time I like to check in with Bill Boyles to find out what is happening in the market.

As you know, Bill is the publisher of the Consumer Driven Market Report (for subscription information, e-mail ipropubs@gmail.com.) He has been writing health care newsletters since dinosaurs walked the earth. He’s seen a lot of things come and go and has earned his skepticism the hard way. So when he identifies a revolution I take him seriously.

From time to time I like to check in with Bill Boyles to find out what is happening in the market.

As you know, Bill is the publisher of the Consumer Driven Market Report (for subscription information, e-mail ipropubs@gmail.com.) He has been writing health care newsletters since dinosaurs walked the earth. He’s seen a lot of things come and go and has earned his skepticism the hard way. So when he identifies a revolution I take him seriously.

More Read

Florida Governor Rick Scott Pays $360 a Year for State Health Insurance
A New Way To Improve Primary Care Yet Reduce Total Costs
How Health Innovators Can Foster Patient Empowerment
The Rise of Precision Medicine: Viable, but Challenge Lies Ahead
Massachusetts Hospitals Gain Under ObamaCare

I called him this time because I was on my way to Pittsburgh to keynote the annual conference of the Pittsburgh Business Group on Health. I’ve had a pretty good idea of the direction the market is taking for quite a while, but Bill was able to provide some sharper focus. Here is what I took away from our discussion −

  1. Employees are extremely skeptical of and even hostile to the “legacy” players in health benefits including both government and insurers.
  2. Employers are flocking into defined contribution approaches to benefits, in which they make a fixed contribution and their employees decide how best to spend the resources.
  3. As part of that, employers are offering three different account options — Flexible Spending Accounts (FSAs), Health Reimbursement Accounts (HRAs), and Health Savings Accounts (HSAs).
  4. There is a new industry of “CDHC account administration firms” to manage these accounts and provide support services. [CDHC=Consumer Driven Health Care.] Bill recently completed a survey of these companies.

 

The survey was of the 10 largest CDHC administrators: WageWorks, HealthEquity, Evolution1, Alegeus Tech, SelectAccount, Aetna PayFlex, ConnectYourCare, United UMR, Bloom Health, and Acclaris. It found that these firms reported a total of 24 million CDHC accounts as of January 2013.

The largest firm had 9.1 million accounts, while the smallest had 330,000.

Bill says these CDHC firms are taking over private insurance. They added 4.9 million accounts in a 12-month period and grew from 11% to 15% market share in one year. The number of accounts increased by 25.7% from January 2012 to January 2013, and is projected to reach 42 million accounts by 2016.

All three types of accounts are growing fast. The number of HSAs grew 34.3% in one year, HRAs by 30%, and FSAs by 18.3%. FSA, remain the most common type of account at 42% of the total, but the others are rapidly catching up.

These firms offer integrated platforms for the three accounts and support consumers with website management, debit and credit cards, and increasing cost and quality information. The last is helped considerably by CMS’s decision to open up its data files to all users.

Notice several things here:

These approaches are protected under the Affordable Care Act. Provided the account is funded by the employer, it does not count against the out-of-pocket limits of the ACA.

Insurance companies are relatively minor players. The core benefits are the accounts, and the insurance may end up wrapping around the account, rather than having the account supplement the insurance.

This means vast amounts of money being controlled directly by the health care consumer. We can’t yet know what impacts this will have on health care delivery, but some of it is already obvious –

  • Concierge medicine.
  • Cash-only physicians.
  • Medical tourism, domestic and foreign.
  • Physician-owned specialty hospitals.
  • Retail clinics.
  • At-home and smart phone lab testing.
  • Brokerage firms to match up patients and providers.
  • Telemedicine.
  • New responsibilities for service providers to manage debts and receivables.
  • Chronic disease services that are more like social work than medicine.

Throw in a growing demand for published prices, and we are off to the races in the greatest transformation of the health care system we have ever seen.

escher

   

TAGGED:health insurance
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Dental health
May 21, 2025
The Secret To A Confident Smile: Top Tips For Better Teeth
The Secret To A Confident Smile: Top Tips For Better Teeth
Dental health
May 21, 2025
Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025

You Might also Like

taxes and healthcare
BusinessHealth ReformPolicy & LawPublic Health

Taxing Employer-Sponsored Health Insurance?

April 3, 2015
repeal ACA
Health ReformPolicy & LawPublic Health

ACA: Why Repeal and Replace Is a Joke

July 23, 2013

Ebola: Chronicle of a Debacle Foretold

October 24, 2014
healthcare for aging population
Health ReformPolicy & LawPublic Health

Another Reason to Take Care of Yourself: There Will Be No One Left to Do It

September 23, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?