#TBT: Consumer-Directed Health Plans & Employers’ Decision-Making

As part of our “Throwback Thursday” blog series, we’re taking a look at a topic that’s currently in the news and tagging it with previous research, videos or commentaries in a relevant way. As the saying goes, “what’s old is new again” – and we hope you enjoy our wonky twist on #TBT.

Enrollment in consumer-directed health plans (CDHPs) grew by 15 percent last year, according to a report by the American Association of Preferred Provider Organizations. CDHPs are high-deductible plans offered in combination with an account [i.e., health savings account (HSA) or health reimbursement account (HRA)] that enrollees can access to help offset the deductible expense. With more employers pondering whether to implement HSAs and HRAs, questions still remain:

• How are large employers determining what pharmacy benefits to cover?
• What is the impact of employer benefit decisions on low income or high-need populations?
• Are employers following best practices when implementing consumer-directed health plans?

On behalf of the National Pharmaceutical Council (NPC), The Benfield Group conducted an assessment of CDHPs and pharmacy benefit design by surveying 96 large and jumbo employers about their current benefit practices. The results show that pharmacy benefits play second fiddle to medical benefits when it comes to designing plans for employees. To learn more about the survey’s findings and the best practices developed based on the results, register for NPC’s webinar, “Consumer-Directed Health Plans: Pharmacy Benefits & Best Practices,” on Wednesday, July 23, at 1:00 pm ET. (The survey report will be made available after the webinar.)

This is not the first time NPC has partnered with Benfield to assess employers’ decision-making. In 2010, Benfield conducted a survey (and our Throwback Thursday pick) that assessed the attitudes of employers on comparative effectiveness research (CER). At that time, the Patient-Centered Outcomes Research Institute (PCORI), the entity charged with funding and overseeing CER, was just beginning to establish itself and hire staff.

The 2010 survey gauged employers’ familiarity with CER and whether they would utilize it in their health benefit decision-making. The results revealed that employers were aware of CER and its potential to answer critical questions about health care. They also looked to PCORI as a trusted source of CER information. Detailed results from the survey are available in the NPC study, “Comparative Effectiveness Research: Do Employers Care? What Will They Do?”

Be sure to check out NPC’s video interview with Chuck Reynolds, president of employer practice, The Benfield Group, who conducted both surveys for NPC. In the video he elaborates on some of the key findings of the 2010 survey:

• Employers care about CER and view it as a way to improve health benefit decision-making;
• Employers know how they will use CER findings; and
• CER findings must include workplace-relevant information (when appropriate) to meet the needs of employers.