Consumer Driven Health Plan Growth Slows; Costs Surpass HMOs

INDIANAPOLIS, Aug. 23, 2011 /PRNewswire/ — Consumer Driven Health Plans (CDHPs)
in the U.S. experienced continued growth this year – albeit at a slower rate
than in 2009 and 2010 – according to preliminary results released by United
Benefit Advisors (UBA) from its 2011 UBA Health Plan Survey, the nation’s
largest health plan benchmarking survey, with 16,421 plans from 10,744
employers.

CDHPs grew at a rate of 13.9 percent this past year (about two-thirds of the
2010 rate) to 22.9 percent of plans offered and cover more employees (17.3
percent) than Health Maintenance Organization (HMO) plans (11.9 percent),
according to Bill Stafford, UBA Vice President, Member Services. The Northeast
region of the country had the largest concentration of CDHPs (31.3 percent),
followed by the Southeast region (27.4 percent). The average cost increase for
all CDHPs at 8.0 percent was slightly lower than that of the average of all plan
types, which increased 8.2 percent this year.

Employers continue to offset the higher out-of-pocket costs of CDHPs by offering
employees a health reimbursement arrangement (HRA) or a health savings account
(HSA) and contributing funds. The 2011 UBA Health Plan Survey found the average
employer contribution to an HRA was $1,656 (up from $1,481 in 2010) for a single
employee and $3,198 for a family (up from $2,857 in 2010).

“For the first time in more than seven years of reporting, CDHPs nationally did
not create a savings over the clients’ in-force plan prior to renewal. This year
experienced an increase (2.1 %), albeit less than the average 8.2 percent
increase of all plans,” said Stafford. “As these plans become more prevalent,
the percentage of savings has continually declined.”

“We anticipate that in spite of passage of health care reform efforts, health
care costs will continue to increase. There still needs to be concerted efforts
to change or alter the underlying health care issues that control costs,” said
Stafford.

Other key statistics from this year’s Survey results:

— The average renewal increase for all plan types was 8.2 percent.
— PPO plans have nearly two-thirds of all enrolled employees (64.4
percent).
— The average employee contribution for plans with contributions for all
plan types is $117 for single and $467 for family.
— Four-fifths of all wellness plans (80.6 percent) offered a health risk
assessment.
— As a direct result of health care reform criteria, 81.3 percent of all
plans now offer an unlimited lifetime maximum benefit compared to just
16.1 percent in 2010
— Of all plans in the Northeast, 80.7 percent still have 100 percent
coinsurance, a decline of only 1 percent from 2010.
— Less than half (49.9%) percent of all covered employees also elected to
cover their dependents, a decline of 6 percent.

As health care plan offerings become more complex, benchmarking data such as the
annual UBA Health Plan Survey have become increasingly critical, said Stafford.

“The intent of the survey is to provide employers of all sizes with the data
they need to manage their health care benefit programs effectively,” said
Stafford. “Especially for employers with fewer than 1,000 employees (which
represents more than 99 percent of the employers in the U.S.) and for employers
who have operations in multiple locations, this survey is the best source of
reliable regional – and in many cases, state – health plan benchmarks by
employer size and industry categories.”

The 2011 UBA Health Plan Survey will be available to the public on Nov. 1. Only
UBA Member Firms have access to the more than 250,000 pages of granular state,
region and industry data. Stafford also said the analysis of the 2011 UBA Health
Plan Survey data will continue over the next several months and, as in past
years, additional findings will be forthcoming. UBA has Member Firms in
virtually every major U.S. market. To locate one and learn more about the 2011
UBA Health Plan Survey, visit www.UBAbenefits.com.

ABOUT THE 2011 UBA HEALTH PLAN SURVEY

With responses from 16,421 health plans sponsored by 10,744 employers
nationwide, the 2011 UBA Health Plan Survey is the nation’s largest and most
comprehensive survey of plan design and plan costs. As the largest survey of its
kind, the UBA Health Plan Survey defines benchmarks by a greater number of
specific industries, regions and employer size categories than is available from
any other resource. The 2011 UBA Benefit Opinions Survey (which delineates
employers’ positions and opinions on Health Care Strategy, Health Benefits
Philosophy and Opinion, Health Plan Management, Personal Health Management,
Employee Communication, and Scope of Benefits Offered) serves as a companion
piece to the 2011 UBA Health Plan Survey.

ABOUT UNITED BENEFIT ADVISORS

United Benefit Advisors is a member-owned alliance of more than 140 premier
independent benefit advisory firms with more than 165 offices throughout the
U.S, Canada and the U.K., and is the nation’s largest benefits advisory
organization. As trusted and knowledgeable advisors, UBA Members collaborate
with more than 2,000 professionals to seek out ideas, insight, expertise and
best-in-class solutions that positively impact employers and make a real
difference in the lives of their employees and families. Employers, advisors and
industry-related organizations interested in obtaining powerful results from our
shared wisdom should visit UBA online at www.UBAbenefits.com to locate your
local UBA Member Firm.

CONTACT:
William Stafford
Vice President, Member Services
Phone: 317-705-1800
bstafford@UBAbenefits.com

SOURCE United Benefit Advisors