Consumer-Driven Plans Increase Share of Employer-Based Benefits

Consumer-driven health plans seized five more points of market share in the employer-based benefits market, according to Mercer’s latest report:

• Mercer survey finds average total health benefit cost per employee rose 3.9% in 2014;
• Enrollment in high-deductible, consumer-directed health plans (CDHPs) jumps from 18% to 23% of all covered employees following a surge of new implementations;
• Nearly half of large employers (48%) now offer a CDHP, up from 39%;
• Private exchanges used by 3% of large employers, with 28% likely to make the shift within five years.

Figure 4 shows that consumer-driven plans are poised to continue their growth. The growth of private exchanges is also good news, because it gets individuals used to buying their own health insurance.