January 2005 Issue

Contents

Consumer-Driven Health Plans

How to Make a Change to a Consumer-Driven Health Plan

Further Reading

Contact Information

Consumer-Driven Health Plans

Employers throughout the United States are becoming increasingly concerned about employee healthcare costs. Annual healthcare costs are being analyzed as employers look for new methods to control expenses.

A newer method used to address these increasing costs is through a consumer-driven health plan (CDHP). CDHPs offer employees a greater choice in health plans. Greater financial responsibility is placed on employees, taking a portion of the burden away from employers.

For example, most employers currently offer only one health plan to employees. CDHPs empower consumers to select a plan that most closely matches their needs. By giving employees the opportunity to participate in creating their health plan, they are made aware of actual healthcare costs. Once aware, it is believed they will become more selective in choosing the care they need.

If the concept of implementing a consumer-driven health plan for your organization seems difficult or confusing, the Northern Illinois Health Plan (NIHP) is offering a one-day seminar this spring designed to present new options for your consideration and to answer questions specific to you.

How to Make a Change to a Consumer-Driven Health Plan

(Adapted from Journal of Financial Service Professionals, March 2004)

1. Offer various health insurance polices that vary in benefits, out-of-pocket payments and length of the policy.
2. Fund each plan by the same dollar amounts so that your employees understand the company's main costs.
3. Provide information about the providers in the plan.
4. Offer excellent education and support.
5. Attend the upcoming seminar this spring sponsored by NIHP, which is designed to answer your questions and concerns.

Further Reading

Consultants Predict Large Rise in Consumer-Driven Health Care

Insurance consultants expect an expansion of consumer-driven health plans that require employees to pay more for their health care.

Consumer-Driven Health Care: Beyond Rhetoric with Research and Experience

Extensive publication that covers the topics of:

• Consumer-Driven Plans: What's offered? Who Chooses?
• Evidence About Consumer Experiences
• Evidence About Utilization and Expenditures

Opinion: Consumer-Driven Health Plans: How Much of a Change?

Is consumer-driven health care merely another new product, or is it a health plan-wide change that seeps into existing products, transforming the company into a "consumer-driven health plan?"

Employers' Contradictory Views about Consumer-Driven Health Care: Results from a National Survey

Examines employers' knowledge and perceptions, and considers present and future plan offerings for consumer-driven health plans.

Owens Corning Uses Data to Raise Success of Consumer-Driven Health Care Plan to New Level

The consumer-driven health plan model has positioned Owens Corning to be financially stronger, and says the key to success is the use of sophisticated data analysis.

For more information contact us at:
(800) 723-0202 or NIHPCustomerService@fhn.org

1006 W. Stephenson St., Freeport, IL 61032

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