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CDHP savings modest, enrollment low: savings from consumer plans not as dramatic as hoped; leaders should continue to educate, empower consumers.

Publication: Managed Healthcare Executive
Publication Date: 01-MAY-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: CDHP savings modest, enrollment low: savings from consumer plans not as dramatic as hoped; leaders should continue to educate, empower consumers.(NEWS ANALYSIS)

Article Excerpt
NATIONAL REPORTS--Consumer-driven health plans (CDHPs) do not currently produce dramatic savings compared with what would be expected from high-deductible plans, according to experts.

Recent Milliman analysis of employer programs that offer employees a choice of CDHPs or non-CDHPs, shows that when offered as a new choice, CDHPs deliver a modest 1.5% in savings beyond non-CDHPs based on typical risk- and benefit-adjustment factors. This contrasts with the more dramatic savings that CDHPs appear to bring if certain adjustments are not taken into account.

"This is not surprising, because the information for health consumers to be more savvy buyers is not readily available,"...

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