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Volume 12 Number 100 News: Market Trends ATLANTA, GA—Employees currently enrolled in consumer-driven health plans are significantly less satisfied with many elements of their plans, compared to employees enrolled in traditional health plans, according to the 2007 Towers Perrin Study on Account-Based Health Plans, released May 22. Towers Perrin said the survey is the first to compare the experience of employees in the two types of plans. But the survey of 1,000 employees enrolled in consumer-driven health plans, or who have that as an option but chose a traditional plan, also found that when employees have a strong understanding of their consumer-driven plan, "and feel comfortable with the perceived financial risk associated with it," they make better utilization of the plan, "thus becoming better health care consumers," Towers Perrin said in a press release. Employees were asked about plan design, best practices, resource availability, and employer communication efforts. Those surveyed were selected randomly and are employed at large national employers, Towers Perrin said. Less Comfortable With Financial Risk Compared to traditional health plan participants, consumer-driven health plan members are "less comfortable" with the financial risk in consumer-driven plans, the survey found, and do not really understand it. Just 29 percent of those surveyed try to reserve account money for future financial protection and an even smaller 16 percent use the accounts for health care expenses in retirement, the survey found. "Contrary to the designed purpose of consumer-driven health plans, employees do not appreciate the long-term potential these savings accounts hold and remain mired in the old 'use it or lose it' mentality of flexible spending accounts," said Dave Guilmette, managing director of Towers Perrin's Health and Welfare practice. That perception must be changed quickly, he added, or the intended financial incentives will not be realized. Employers can change the way the accounts are perceived by teaching employees how to manage financial risk when they educate them about the accounts, Guilmette said. Perception vs. Reality The survey also found that the overall perception of consumer-driven health plans by employees is that they are cheaper and inferior, Guilmette said, and there is a lack of trust about employer motives in introducing them to employees. Ironically, consumer-driven plan members often have access to the same provider networks as those in traditional health plans, he said, with the added benefit of being able to save for future medical expenses. "Clearly, employers need to recondition employees to appreciate a longer-term view of their health benefits and to help them understand that consumer-driven plans are not lesser plans," Guilmette said. A Wake-Up Call The survey results, Towers Perrin said, show that while consumer-driven plans have reduced health care costs and helped change employee behavior, the widespread confusion and dissatisfaction reported by employees make it much too soon to declare the plans a complete success. The research is "a wake-up call to employers and health plans ... to address employee concerns" about consumer-driven health plans, Towers Perrin said. Employers should design their programs well, be honest and thorough in their communication of the plan, distribute plan information frequently and beyond the enrollment period, address emotional as well as substantive issues, build employee confidence in their ability to manage a plan, and help them adopt a lifelong view of health care, the study recommended. Copies of the survey report, when they are available, can be obtained by sending a request by email.
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