Reducing Corporate Health Care Costs 2006 Survey

The survey results offer a snapshot of how 152 large employers are managing health care costs. It measures attitudes and presents data about the plan types offered. 

24% of employers offer a consumer driven health plan (CDHP), and many more, 40% believe that a CDHP provides the best chance to control the growth of health plan costs.

Most employers in the survey, 76%, did not indicate interest in a radical change to their health plan offerings to contain costs. This suggests that the majority will implement incremental changes. Of the 24% considering radical change, 70% are leaning toward offering a CDHP either as a full replacement plan or as an alternate option offering.

The frequency of types of plans offered in 2006 by employers: (76% of employers offer a choice of plans to employees): 

• 57% offer an HMO (Health Management Organization)
• 26% offer a POS (Point of Service)
• 86% offer a PPO (Preferred Provider Organization)
• 24% offer a traditional indemnity plan
• 24% offer a CDHP (Consumer Driven Health Plan) 

Employees plan selections in 2006:

• 50% chose a PPO
• 21% chose an HMO
• 6% chose a CDHP
• 23% chose other offerings

This survey is not meant to be projectable to the beliefs or insurance offerings of all U.S. employers. It represents a snapshot of employer concerns, strategies, and plan characteristics in 2006. It does not represent a statistically significant random sampling of employers.