Small businesses are recognizing the benefits of Consumer Directed Healthcare benefit programs, according to Mercer’s latest survey.

At the same time, larger corporations are adopting programs that reward employees who practice health management regimens.

Among the findings of the latest survey, was significant increase in CDH programs.

Compared to large employers, small employers have been slow to adopt high-deductible, account-based consumer-directed health plans. 

But in 2009 CDHP offerings among employers with 10-499 employees jumped from 9 percent to 15 percent (Figure 6). 

This helped drive the percentage of all covered employees enrolled in CDHPs from 7 percent to 9 percent. Enrollment in PPOs was flat at 69 percent, while enrollment in HMOs fell from 23 percent to 21 percent (Figure 7).

HMO enrollment peaked in 2001 at 33 percent and has been eroding ever since.  In 2009, the average HMO cost per employee was higher than PPO cost (Figure 8).

Small employers held down cost increases by sharply raising deductibles for in-network PPO services. Their actions drove the average PPO deductible among all employers up by about $100 for an individual and $300 for families, to $1,096 and $2,515, respectively (Figure 5). Consistent with past years, employers kept premium contributions relatively stable, choosing to keep the cost of coverage affordable while shifting the burden to those who use health services.

"A lot more employers were willing to place their bet on health management in 2009," said Linda Havlin, a worldwide partner and Mercer’s global health and benefits intellectual capital leader. "But they will want to see continual gains. Measuring health management

Very large employers are also increasingly willing to reward employees who demonstrate responsibility for their own health. Nearly a fourth of those with 20,000 or more employees vary employees’ premium contribution amounts based on their smoker status – 23 percent, up from 17 percent last year,

ROI is inherently challenging and continues to evolve. There’s growing anecdotal evidence that well-designed and communicated health management programs can improve outcomes, but we need to work harder at understanding and eliminating missed opportunities – and that includes changing noncompliant patient behavior."

For more details go to  http://www.mercer.us/summary.htm?idContent=1364345.