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Exploring Consumer-Driven Health-Care Plans

By McLaughlin, K Brian
Publication: Business NH Magazine
Date: Wednesday, September 1 2004

New Hampshire employers, as well as employers throughout the country, strive to provide employee benefit plans that attract, retain and reward employees while they continue to battle ever-increasing health-care costs. This has caused significant discussion around what has been termed ConsumerDriven

Health-Care Plans (CDHPs). These plans have received widespread coverage in national and industryspecific media.

The creation of tax-favored Health-Care Saving Accounts (HSAs) and Health-Care Reimbursement Accounts (HRAs) have propelled the discussion around CDHPs to a new level, as one of the main purposes of these accounts is the financial incentive to create value-conscious health-care consumers.

Factors Driving Health-Care Increases

Health-care costs have continued to increase at a trajectory higher than the rate of inflation. In 2004, average rate increases among the major carriers in NH have ranged between 14 to 16 percent. While NE has seen increases considerably higher and slightly lower than that average, these rates are in stark contrast to the current rate of inflation, which is about 3.1 percent. The current trajectory of these increases is unsustainable without employers seriously evaluating cost-shifting strategies.

In addition, make sure to read these articles:

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  • While the bargaining groups and politicians debate a single payer system for health care, employers and their insurance companies have started offering another option; "consumer ......
  • Benefits administration 'goes plastic'.
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  • Region 7 hosts symposium.
  • This year's HFMA Region 7 Symposium will take place October 21 and 22 in Chicago. Sessions include: * Healthcare Access Essentials for Executives * Strategic ......
  • HealthMarket Launches Its Consumer Driven Health...
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  • Gaining traction
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  • Healthy rewards.
  • Just 3 of the Fisher Group's 16 employees were on the company's Blue Cross/Blue Shield health insurance plan. "Nobody participated except the older people in ......
  • The First Statewide Study of Employees:...
  • GREEN BAY, Wis. -- Consumer Driven Healthcare Plans always looked good on paper, but there was very little empirical data to support the proponents. Today, ......
  • Health Care Expenditures in the U.S. Continue to...
  • DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c57530) has announced the addition of "Health Insurance in the US 2006" to their offering. This report reviews issues ......
  • HealthMarket Offers Consumer Driven Health Plans...
  • Business Editors NORWALK, Conn.--(BUSINESS WIRE)--Aug. 4, 2003 HealthMarket, Inc. (www.healthmarket.com) today announced that its wholly owned subsidiary, American Travelers Assurance Company, has been approved by ......
  • Twice as many employers offer HSAs, HRAs.
  • Health savings account (HSA) or health reimbursement arrangement (HRA) options are being presented to employees by twice as many employers compared to 2005, according to ......
  • AWARE Online Tools: giving employees the tools to...
  • To assist employers and plan participants in the age of consumer-driven health plans, Unified Group Services is offering members a complete suite of decision-support tools ......