HMO Enrollment Surpasses CDHPs for First Time

Enrollment in health maintenance organization plans has surpassed enrollment in consumer-driven health plans, a survey concludes.

While 12.4 percent of employees enrolled in CDHPs this year, 15.4 percent enrolled in HMOs, according the “2010 United Benefit Advisors Health Plan Survey” released Monday, August 23. In comparison, 15.4 percent of employees enrolled in CDHPs in 2009 while 13.6 percent of employees enrolled in HMOs.

The rate of CDHP growth also has slowed, according to the Indianapolis-based alliance of 145 benefit advisory firms. Employers have introduced 18.1 percent more CDHP offerings in the past year, down from a growth rate of 33.9 percent in last year’s survey.

The U.S. Northeast had the largest concentration of CDHPs—26.7 percent of plans offered—followed by the Southeast, where 22.9 percent of group benefit plans offered were CDHPs.

Among other findings of the 2010 UBA survey:
• The average premium increase for all plan types was 8 percent this year, up from 7.3 percent last year.
• Preferred provider organization plans have nearly two-thirds of all enrolled employees, growing to 65.7 percent this year from 63.9 percent last year.
• 52.9 percent of all covered employees also elected to cover their dependents this year, up slightly from 52.7 percent last year. The survey, which includes responses from 11,413 employers offering 17,113 health benefit plans, will be available via UBA member brokers in the United States, Canada and United Kingdom beginning November 1.  

Filed by Joanne Wojcik of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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