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
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Nearly One-Third of All Workers Now in Consumer-Driven Health Plans
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 > Nearly One-Third of All Workers Now in Consumer-Driven Health Plans
Policy & Law

Nearly One-Third of All Workers Now in Consumer-Driven Health Plans

JohnCGoodman
JohnCGoodman
Share
4 Min Read
SHARE

The Kaiser Family Foundation recently released its annual survey of employer health plans. This is the “Big Daddy” of all of the employer surveys. It has been conducted under a variety of sponsors for over 20 years and is as comprehensive as any survey could be.

The Kaiser Family Foundation recently released its annual survey of employer health plans. This is the “Big Daddy” of all of the employer surveys. It has been conducted under a variety of sponsors for over 20 years and is as comprehensive as any survey could be.

This one finds a remarkable continuation of the private market’s conversion to consumer-driven health plans. Thirty-one percent of all covered workers now have an individual deductible of at least $1,000. This is up from 27% just one year ago and 10% in 2006. Twelve percent now have deductibles of $2,000 or more.

More than half of these workers (17%) also have a savings option: 8% have a Health Reimbursement Account (HRA) and 9% have a Health Savings Account (HSA). According to this survey, HSA enrollment grew by 50% in the past year (up from 6% of the work force in 2010.)

More Read

Big data in healthcare
Big Data = Big Brother? Leveraging Transaction Data for Better Healthcare
Vaccines & Public Health in 2016: Where are We Now?
Mobile Health Around the Globe: Africa and Asia – MyCrisisRecords
5 Buckets to Patient Engagement and the Role of HIT
Above All, Do No Harm: The Sad State of Health Care Quality in Rural Madhya Pradesh

 

The reason for the surge in HSA enrollment is pretty clear — money. Total family premiums for HSA-qualified coverage are $12,685 versus $15,363 for non-CD health plans, and employee contributions to premium are nearly $1,200 less ($3,076 vs. $4,234.) Plus, on average employers contribute $1,069 to the family’s HSA. These savings go a long way to filling the employee’s deductible obligation.

A couple of notes on all this:

  1. The survey does not track HRAs that have less than a $1,000 deductible, even though those, too, should be considered “consumer-driven.” The point of consumer-drive health is to give people financial incentives to be cautious in their spending and allow people to have more control over their own health care decisions. A higher deductible is a good way to do that, but not the only way. Many employers use HRAs when they want to maintain coverage for some services below the deductible, such as prescription drug co-pay programs. These designs still empower consumers to be wise shoppers.
  2.  Similarly, I consider a high deductible without a savings option as part of the consumer-driven health universe. A tax-favored savings account is only attractive if one pays income taxes, and nearly half the population does not. Even without an official account, these workers still benefit from lower premiums and those savings may still be used for the direct payment of services.

I spend a lot of my time in my blog posts discussing what the so-called “research community” has been doing over the years. It is astounding to me that these researchers continue to virtually ignore the transformation in health care financing that is happening under their noses. They all opposed consumer driven health for political reasons, and now they seem to resent that it is happening despite their disapproval. Maybe they are hoping it will all just go away.

   

TAGGED:consumer-driven health planshealth reform
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

Cheap Generic Drugs from Emerging Markets Risky

July 7, 2011

Can the Media and the Public Handle the Health Reform News?

February 25, 2011

Does Your Smartphone Know More About Your Health Than You Do?

April 3, 2012

What Is Next Generation Revenue Cycle Management?

May 28, 2014
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?