Consumer Model Key to Controlling Health Cost

WASHINGTON -- The 13th Annual National Business Group on Health/ Watson Wyatt study finds that more employers are turning to consumer-oriented health care models to help control costs and improve employee health and productivity.

The study finds that these companies are getting results by combining consumer-directed health plans with a broad range of programs designed to more actively engage employees.

In addition, enrollment rates in CDHPs are strongly linked to lower health care cost trends. Companies with at least 50% of their population enrolled in a CDHP have a two-year trend about half that of non-CDHP sponsors.

The study also finds that both CDHP adoption and enrollment rates are on the rise, with 47% of companies having a CDHP in place--an increase of more than 20% compared with 2007. Forty-two percent of these companies have at least 20% percent of their employees enrolled in a CDHP, up from 27% of surveyed companies in 2006.

According to the study, best performers and those with consumer-oriented health care models achieve significant cost savings by implementing programs that use a mix of financial incentives; focus on provider quality, data, health and productivity; and provide employees with information to make smarter health care decisions.

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