The last few years have led to many changes in the health insurance industry. In addition to the changes mandated by the Affordable Care Act, a certain type of health plan has continued to gain popularity. These plans are called Consumer Driven Health Plans (CDHP) or High Deductible Health Plans (HDHP). The plans are different than traditional plans because they focus on offering lower premiums, due to higher deductibles and the elimination of co-pays. With these plans, most covered expenses (other than wellness) must be paid for by the employee until they reach their deductible. The plans are also HSA (Health Savings Account) qualifying , meaning an employee can put money into a bank account pre-tax to use for medical expenses.
A recent article in Entreprenuer, highlights some of the reason for their increase in popularity:
“Why is the market moving in this direction? For starters, high-deductible plans are attractive to employers because it means managing less of the insurance cost. On the employee side, both high-deductible health plans and health savings accounts encourage employees to be more mindful about their health and more involved in making decisions for the best-value care.”
These types of plans can be a great way for employers and employees to have more control over their health care costs. That being said for an employee who is used to a traditional PPO or HMO plan, these can seem risky or even scary. Education about these plans is key to their success. The A Plus Benefits Health Plan includes two high deductible health plan options that are HSA qualifying. We have Account Managers who are knowledgeable about these plans and can help employers and employees make educated benefits decisions.
It may seem early to start thinking about open enrollment, but now is a great time to rethink your benefits strategy and prepare an action plan for October and November. Contact your Client Account Manager to start the conversation.