From the May 2007 issue of Benefits Selling Magazine • Subscribe!

CDHP use continues rise

WHILE EMPLOYEE ENROLLMENT in consumer-directed health plans remains low, just 8 percent, the number of companies offering CDHPs is rising faster. Thirtyeight percent of companies surveyed said they offer or plan to offer a consumer directed plan, up from 33 percent in 2006 and almost double 2005's 21 percent, according to research from Watson Wyatt Worldwide and the National Business Group on Health.

Companies are not adding CDHPs in a vacuum, however. The study found that companies experience the most success by implementing a CDHP in conjunction with other health strategies. Companies that adopt approaches that involve health improvement and productivity, data and evidence, the appropriate use of health care services and a CDHP are seeing the greatest cost-saving success.

The best companies, according to survey results, are 17 percent more likely to offer financial incentives to encourage participation and 11 percent more likely to deliver health care information effectively.

For more information on the survey, visit www.watsonwyatt.com.

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