Uniondale, NY - Alan Cohen, CEO and co-founder of OnlineBenefits, Inc., today announced the results of a survey on consumer-driven healthcare (CDH). The nationwide survey was commissioned by OnlineBenefits and conducted by Performance Management International (PMI). PMI provides research, consulting and program measurement services. OnlineBenefits is a leading provider of market-proven HR solutions that improve benefits delivery.
Respondents representing 283 US companies in 41 states shared their views on various aspects of consumer-driven healthcare. Key findings from the survey reveal the following:
1-CDH is a significant development in employee benefits.
2-The more popular CDH plan incorporates a health savings account (HSA) versus a health reimbursement arrangement (HRA).
3-Managers are on a steep CDH learning curve and are getting information from a variety of sources.
4-The highest expectations for CDH are financial.
5-Communication is critical to the success of CDH.
"As may be expected, we found that CDH is a dynamic, fast growing innovation still in its infancy. While early adopters have proven the benefits of the concept, the vast majority of managers have little more than an awareness of the general concepts," said Cohen. "We have no doubt that many more companies will implement CDH in the coming year, despite the steep learning curve ahead of them."
Of the companies represented, 55% were small (under 250 employees), 23% were medium-sized (250-999 employees), and 22% were large (1,000 or more employees). The majority of respondents (83%) identified themselves as HR managers or benefits managers. The remainder (17%) identified themselves as either a CFO or CEO/President.
Large business are most likely to offer an HSA (39%), followed by small businesses (34%), and medium-sized businesses (27%). CDH plans using HSAs (31%) are nearly twice as popular as those using HRAs (17%).
Nearly half of respondents (48%) believe CDH will transform healthcare management in their companies and close to a third (32%) plan to offer a CDH option. Yet, there was little consensus as to what CDH will mean for their company or their employees. More expressed skepticism (18%), than perceived benefit (14%). Some felt it would help somewhat (34%), and others were unsure (31%).
The majority of respondents have a general awareness of CDH (92%): 17% have researched the options and can explain them; 12% have actually evaluated CDH options; and 18% have actually implemented CDH.
By far the most popular source of CDH information for small and mid-sized companies is insurance brokers (76% and 67%, respectively) and health plan carriers for large employers (59%). Secondary information sources for small and mid-sized companies are health plan carriers (47% and 48%, respectively) and consultants (48%) for large companies. The third most used source of information is fellow HR professionals for small companies (31%), and seminars for medium and large companies (41% and 44%, respectively).
The highest expectations for CDH are financial. CEOs and CFOs (83% and 78%, respectively), and HR managers and benefits managers (72% and 65%, respectively) believe CDH will help them contain healthcare costs. Both HR and benefits managers see CDH increasing employee awareness of healthcare costs (84% equally). Benefits managers, more than any of their colleagues, expect CDH to change employee purchasing behavior (60%). One third of all respondents expect CDH to cause confusion for employees, with benefits managers (40%) most concerned and CFOs (22%) least concerned. More than a quarter of all managers (27%) expect CDH to improve employee health and wellness.
"It´s not surprising to us that those closest to employee benefits delivery are most concerned about the ensuing confusion of CDH adoption. Without the ability to effectively educate and support employees, companies can anticipate low adoption," said Cohen.
Respondents clearly concur. Two thirds (66%) believe employees will need a lot of support, both getting started and ongoing. Only 26% believe employees are capable of managing benefits on their own given the right tools. Respondents ranked the following online tools and programs, in priority order, as critical or very critical:
Online Tools
Health plan communication-86%
Medical claim tracking-83%
Plan comparison-79%
HSA/HRA account tracking-78%
Drug information-77%
Wellness program access-70%
Programs
Consumer education-94%
Disease management-76%
Financial planning-74%
Health/wellness incentives-71%
Health risk assessments -70%
Hotline for medical advice-66%
Wellness management-66%
To request a white paper on this survey, send an e-mail to info[at]onlinebenefits.com.
About OnlineBenefits
OnlineBenefits, Inc. is the HR solutions company behind the Benergy(TM) family of communication, administration, agency management and intelligence products. The company designs, implements and hosts award-winning Internet-based applications and distributes them through a partnership network of more than 500 of the nation's leading brokers and consultants. Currently, over 1 million employees in more than 5,000 companies use Benergy solutions. In 2004, OnlineBenefits was named to the Inc. 500 list of America´s fastest-growing private companies.