More than 8 million people were enrolled in health savings accounts in January 2009, up from 6.1 million in January 2008.
Enrollment in HSAs has been growing steadily since their introduction, from less than half a million people in September 2004. These plans continue to become more popular because the premiums can be lower than those of traditional plans, and members may have more flexibility in how they use funds in accounts such as HSAs and flexible spending accounts.
“As consumer-directed health plans become more mainstream, even more employers are looking at offering these plans,” says David Crosby, regional president of HealthAmerica. “Yet, despite their growing popularity, some may still feel unsure. The key is education, and it’s easier than one might think.”
Smart Business spoke with Crosby about how employers can help ease their work force into adopting — and embracing — consumer-directed health plans.
What issues do employers face in implementing consumer-directed health plans?
Consumer-directed health care options involve a higher degree of cost sharing with employees. For 2010, the minimum deductible is $1,200 for single coverage and $2,400 for families, in order for plans to be compatible with health savings accounts. These deductibles may be unsettling for employees who have never had deductibles before.
Employees may not be sure what is expected of them or what being a ‘more active health care decision-maker’ is all about. They may be confused and more than a little resistant to change.
How can employers tackle these issues?
An informed and empowered work force will improve the odds that employees will embrace this different type of health plan. Therefore, it’s important that employers take the time and make the effort to explain why they are implementing such measures, and do so early and often.
Sharing information is the key component to effective introduction. Employees may not like what they are hearing, but they will appreciate the explanation about why it is necessary. These products have the benefit of history on their side now. There are a lot of tools and resources available to help.
What messages should an employer be communicating to employees regarding HSAs and FSAs?
Begin by defining health care benefits within the broader context of business. Employees need to understand that rising health care costs will affect the company’s ability to succeed. Let employees know that although their contributions toward health care premiums are increasing, yours are going up even more. Let them know how much more it would be if you didn’t make changes to benefits.
Adopting a policy of ongoing, honest communication can help overcome skepticism, encourage employees to be partners in controlling costs and promote understanding of the changes as a necessary business decision.