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Most PPOs, HMOs To Offer CDH Plans, Survey Finds

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The vast majority of managed-care companies will offer consumer-driven health care plans within the next year, a new survey reveals.

Of health maintenance organizations and preferred providers organizations that responded to a survey question on CDH plans, 93% said they offer such plans or expect to do so by the end of next year, according to a Milliman Associates, Seattle.

CDH plans are high-deductible health care plans that carry an integrated health care savings account, such as a healthcare reimbursement account or health savings account.

“The still unanswered question remains, to what degree will employers and employees buy in” to CDH plans, observes Steve Cigich, author of the survey for Milliman, a benefits consulting firm.

Few employers or employees have chosen such plans so far, he notes, pointing out that the premium revenue for CDH plans among responding firms will total just 2.5% of all commercial premium revenue in 2005.

On the other hand, respondents expect this amount to double next year.

The survey also found that 44% of HMOs and PPOs expect to offer a tiered provider network within the next year. TPNs provide members with financial incentives to pick the “most efficient” providers, that is, those that offer lower costs with the hope of maintaining high quality care.

More than half of PPOs and HMOs surveyed already share or plan to share price and quality information for hospital and physician services with their members.


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