A study of US companies that have adopted consumer-directed health plans1 (CDHPs) suggests that the key to maximizing their impact is to design and manage them as an integrated performance transformation program involving substantial senior-executive leadership. The piecemeal method that many companies use makes these programs significantly less effective, the research found. Companies that take a programmatic approach were more than twice as likely as others to report that CDHPs had been “very successful” in both reducing costs and improving the health outcomes of employees. Such findings offer cause for optimism against a backdrop of rising US health care costs and widespread apprehension among executives thinking about implementing—or expanding—consumer-centric health plans.
To learn more about the experiences of companies with CDHPs and other consumer-centric health plans, we surveyed nearly 700 executives and human-resources benefits managers of employers that have adopted them.2 The study examined the plans’ cost trends for companies, as well as enrollment levels, the health status of employees, and their degree of financial accountability. We also studied the way companies handled four components of these plans: benefits structures, information and tools, funding mechanisms, and incentives. To supplement the analysis, we conducted six focus groups comprising more...