Greg Hummer, Gregory Hummer, Simplicity Health, Simplicity Health Plans, CDHP, Consumer Directed Health Plan, HSA, Self Funded Small Group

AAPPO and Mercer: CDHP Plans Grow by 27% in 2009, Simplicity Health Plans

MyHealthGuide Source: American Association of Preferred Provider Organizations (AAPPO). Released today by AAPPO and Mercer's National Survey of Employer Sponsored health Plans, 4/19/2010, www.aappo.org and www.Mercer.com

Washington, DC -- Enrollment in Consumer-Directed Health Plans (CDHPs), providing consumers more control over the cost of their health care, grew to an estimated 23 million people in 2009, up from 18 million people in 2008 -- a 27% increase. This key finding was reported in an analysis of Mercer's National Survey of Employer Sponsored health Plans by the American Association of Preferred Provider Organizations (AAPPO). Released today by AAPPO, this analysis also reveals that small employers lead CDHP adoption in 2009, accounting for most of the growth among all employers.

"At a time when employers are faced with the difficult choice of limiting benefits or raising health care costs to their employees, they are turning to CDHPs given the cost savings inherent in these plans," said Karen Greenrose , president and CEO of AAPPO. "We also saw small employers turn to CDHPs at a much greater rate, largely due to this cost savings. CDHPs, which are predominately built on PPO networks, offer the affordability, choice and access that employers and consumers alike are looking for."

Another interesting finding of the analysis showed that while employers prefer to offer CDHPs with health savings accounts (HSAs), employees are enrolling in CDHPs with health reimbursement accounts (HRAs) at a greater rate. As consumers look to get the biggest bang for their buck, HRAs are more appealing given that they provide an employer contribution to the employee's HRA, whereas HSAs do not always do so.

"Health Savings Accounts are a valuable tool to help make health coverage more affordable and accessible for millions of Americans. This important study further demonstrates the success of consumer directed health plans," said Congressman Paul Ryan (R-WI).

About the American Association of Preferred Provider Organizations (AAPPO)

Founded in 1983, AAPPO (www.aappo.org) is the leading national association of preferred provider organizations (PPOs). PPOs put control for medical decisions in the hands of the physician and patient, resulting in easy access to the right care, provided by the right doctor, at the right time. AAPPO creates a forum for discussion and dissemination of PPO best practices. Visit www.aappo.org.

Gregory Hummer of Simplicity Health Plans agrees with this data and suggests that with a true point of service payment system that CDHP with HSA could easily become the most common form of plan in the US. Greg Hummer says, “Adding transparency at the point of service is what Consumer Directed Health Plans need to thrive and drive members to become true consumers of healthcare.”

Gregory J. Hummer, M.D.
Simplicity Health Plans
Consumer Directed Health Plan (CDHP)
CEO
Cleveland, Ohio
216.367.3081