Insurers to offer more consumer-directed health products

Healthcare Financial Management, Dec, 2005

Most health insurance providers intend to offer a consumer-directed health product to employers within the next year, according to results from the latest annual survey of group health insurers conducted by Milliman Consultants and Actuaries. The survey of health maintenance organizations and preferred provider organizations shows that 93 percent expect to offer employers healthcare reimbursement accounts or health savings accounts. However, it is unclear how many employers and employees will choose these products given their low selection rate in the past.

Respondents said they expect CDH premium revenue, which will be only 2.5 percent of all commercial premium revenue in 2005, to more than double to 5.2 percent in 2006. Forty-four percent of the respondents expect to offer a tiered provider network within the next year, and more than haft of all respondents reported that they currently share or plan to share price and quality information for hospital and physician services with members within the next year.

To read Milliman's survey announcement, go to www.milliman.com/ press_releases/FINAL_2005CDHRelease.pdf.