Healthcare Notes

Employers Continue To Offer CDHC Plans
Nearly one in five companies of 314 firms surveyed offer a consumer-driven health plan, up from 11 percent in 2003, according to Deloitte Consulting LLP. An additional 14 percent of companies surveyed plan to offer such a plan by 2006, while another 29 percent are currently reviewing consumer-driven health options and may offer one in the near future.

With more than half of surveyed companies reporting healthcare cost increases in 2004 ranging from 11 percent to more than 20 percent, employers are adopting alternative healthcare models that encourage employee consumerism to help rein in costs without compromising benefits. Consumer-driven health care models can vary considerably, but they share a core principle: enabling employees to understand the true cost of healthcare services and the options available to them for receiving care, while requiring employees to take on increased financial responsibility for managing their healthcare.

"A double-digit increase in the number of companies offering a consumer-driven health plan clearly demonstrates that these type of plans are rapidly gaining acceptance," says Steven Kraus, principal-in-charge of Deloitte Consulting's Human Capital practice in Chicago. "With double-digit annual cost increases, companies are reaching the limits of their ability to fund traditional health insurance. Cost shifting isn't working either. Executed properly, consumer-driven health plans will transform care by rewarding employees, employers, providers and payers for doing the right thing."

In general, early adopters of these plans have averaged a drop in utilization of seven to 10 percent, according to Kraus, but how that translates into savings differs widely by company. Among the 19 percent of companies offering these plans, 15 percent expect to save more than 10 percent on healthcare costs; 35 percent of early adopters say they will save more than 5 percent; and 17 percent expect to save less than 5 percent. Another 29 percent of companies say the plan is cost-neutral, while 4 percent say it will be more expensive.

Early adopters report strong satisfaction among employees, senior management and middle management. In fact, respondents report 60 percent of employees in consumer-driven plans are satisfied, 32 percent are neutral, and eight percent are dissatisfied. A full 80 percent of senior managers are satisfied and 20 percent are neutral. Among middle managers, 63 percent say they are satisfied, 33 percent are neutral, and four percent are dissatisfied. Among those respondents that reported being dissatisfied, the vast majority is only mildly dissatisfied.

Deloitte Consulting surveyed senior human resources executives from 314 companies with median revenues of $1 billion and an average of 5,000 employees. Respondents represented all industries, with 33 percent in manufacturing and 14 percent in financial services.

For more information, visit deloitte.com.

50-plus Population Faces Potential Dental Crisis
Approximately 60 percent of Americans over the age of 50 have dental insurance, and most will lose this coverage when they retire, according to the landmark U.S. Surgeon GeneralŐs Report on Oral Health.

"As the 50-plus population continues to grow in numbers, and with the current lack of accessibility, there is a critical need for affordable dental insurance for this population, as well as public information focused on the importance of dental health as we age," said Dawn Sweeney, president of AARP Services Inc.

To meet these needs, AARP, through its subsidiary AARP Services Inc., has teamed with Delta Dental Insurance Co. to create the AARP Dental Insurance Plan and to launch a dental care initiative targeting those who are over 50 years of age.

The AARP Dental Insurance Plan, featuring comprehensive family coverage and the ability to choose any licensed dentist, will initially be available to AARP members in 21 states and the District of Columbia. Plans are to make the program available to all 35 million AARP members across the country by 2005.

The AARP Dental Insurance Plan provides coverage for most preventive, diagnostic and basic restorative services, as well as root canal treatment and oral surgery. After 12 months, coverage expands to include major restorations, gum treatment and dentures.

For more information, call  (866) 583-2085; or visit  deltadentalins.com/aarp.

Mayo Clinic Web Site Features Health Tools
The Mayo Clinic Web Site includes a Web page, called Health Tools, that features health decision guides, self-assessments and interactive calculators for determining health risks based on individual factors.

The Health Decision Guides offer the pros and cons of various healthcare options. Topics include breast cancer screening and treatment; prostate cancer screening and treatment; herniated disk treatment and knee injuries.

The self-assessments determine your health status by using interactive questionnaires. The calculators allow for quick risk assessment or determination of health conditions, including heart disease, calorie intake, and a pregnancy due date calculator.

Visit mayclinic.com and click on "health tools."