CDHP enrollment grew from 16% of covered employees last year to 18% in 2013, the same percentage enrolled in HMOs, according to a recent survey by Mercer. In certain regions, such as the Midwest, CDHP enrollment is now more than twice HMOs. Mercer reports the average cost of coverage in a CDHP is 17% less per employee than a PPO and 20% less than in an HMO, on average. Nearly two-thirds of all large employers and one-third of small employers plan to offer a CDHP within three years.
Large Employers Cite Obamacare "Cadillac Tax" in Reducing Benefits
For 75 million Americans who get their insurance through large companies, the Affordable Care Act is a mixed bag. Experts tell NBC News the new healthcare law is only slightly increasing premiums next year, but causing some companies with the most generous plans to reduce their employees’ benefits. The changes are intended to relieve future health plan trend pressure and to put employers in a position to avoid the 40 percent excise tax that becomes effective in 2018.
Among Cover Oregon's current shortcomings: The online health-insurance exchange does not clearly identify plans that can be paired with a Health Savings Account. If you just browse the site, it would appear there are only four such high-deductible, HSA-qualified plans available to individual insurance buyers. Actually, there are 13, Cover Oregon officials confirm. "They're not clearly labeled as such," agrees Tom Eiden of Health Plans NW in Milwaukie.
Reconsider Your Decision to Skip the Health Savings Account
The real benefit of a high-deductible plan for higher-income workers isn't so much the year-to-year premium savings. Instead, the key benefit is that participating in a high-deductible plan enables you to invest in a health savings account. Such accounts offer the only triple tax advantage in the whole tax code. Here are some common objections to HSAs as well as a discussion of whether those objections are valid.
According to a 2013 survey, almost 90% of middle-income Americans do not feel prepared to handle the financial cost of a critical illness. Most respondents said they would have to use their savings, but 75% had less than $20,000 in savings and 25% had no savings at all. One strategy that may help reduce health-care costs while saving for future expenses is to combine a high-deductible health plan (HDHP) with a health savings account (HSA).