The cost of healthcare continues to steadily rise year over year. In an environment of escalating premiums, many employers are in search of alternatives to the status quo. Whether the solution is a lower cost plan or increased premium share with employees, decision makers are doing the best they can to retain employees and remain profitable.
Consumer directed health plans (CDHPs), paired with a health savings account (HSA) are trending higher among many employers with growth of 11.2% from 2017 to 2018. These plans with lower premium costs are coupled with a new philosophy which brings comparison shopping and savvy consumerism into the healthcare space. If healthcare consumers have “more skin in the game,” i.e. paying more of their out-of-pocket costs, they will shop around for the best deal on doctor visits, prescription medicines and more. It sounds good in theory, but does it really work? Some actuaries say yes.