|
Fact Sheet On
CDH And ‘High’
Deductibles
[From
Interpro Publications Staff]
There
have been growing reports lately
trying to equate CDH plans with
unfunded
high deductibles. Here
is a list of facts about CDH plans
based on company reports and recent
studies:
-- You can’t compare high
deductibles in traditional plans
with CDH deductibles.
The
deductible in a traditional plan is
always paid entirely by the patient.
The deductible in a CDH plan is
never paid entirely by
the patient – it is paid primarily
by a fund.
-- You
shouldn’t
compare deductibles in an HRA with
an HSA.
The fact is
100% of all HRAs receive a full
employer contribution. Only 24% of
HSAs receive an employer
contribution, but the employee
contribution brings it up to 90% of
the HRA contribution.
Traditional plans:
zero.
--
HRAs
and HSAs do not have higher
deductibles than traditional plans.
Again,
both
plans are
funded. Traditional plans
are
unfunded. CDH plans also
have a rollover contribution
year-to-year which increases funding
(and eliminates the deductible after
the first year for half of
employees). You can’t compare a
deductible that is unfunded with a
deductible which is funded, and then
say the one
without funding is lower.
--
The
out-of-pocket costs in these
accounts is lower.
The
deductible minus the savings account
and rollover equals lower OOP costs
for a large majority of HRA and HSA
users. The amount paid by the
patient is less in a CDH plan
on average, and a
majority of families in a CDH plan
see their out-of-pocket costs
eliminated entirely
after the first year.
--
CDH
enrollment is
booming.
The actual enrollment in real
companies more than doubled in 2006.
The number of HSA accounts reported
by banks more than tripled, meaning
HDHP enrollment tripled. United
Healthcare alone for example has
more enrollees than a recent survey
found for the entire U.S. If you add
it all together, total enrollment in
CDH
accounts
on 01/01
is showing over 12
million lives, an increase of over 4
million in 2006 (split evenly
between HRAs and HSAs).
|
