Loyalties to HRAs, HSAs shift
Benefitnews.com June 29, 2006
Employers' preference for health reimbursement arrangements and health savings accounts is swinging, with HSAs overtaking the once-leading HRAs, reveals a new survey by the International Society of Employee Benefit Specialists and Aon Consulting. In fact, HSA use by companies grew from 15% last year to 48% this year, while HRA use dropped from 75% to 43%. The proportion of employers offering both HRAs and HSAs fell from 15% last year to 10% this year.
Overall, consumer-driven health plans are becoming more popular among businesses. Of the 430 employers polled, 28% offer a CDHP, up from 22% last year.
Not only are more employers offering HSAs, they are contributing more to their employees' accounts as well. Of those providing HSAs, 53% are contributing to their workers' accounts with flat dollar amounts or matching contributions.
Meanwhile, 44% of employers without CDHPs plan to offer them in the future, which could ensure the continued presence of this growing benefit. Most employers with CDHPs hope the plans will introduce smart shopping into health care decisions, while those that don't offer the plans claim the concept is too new. With three-quarters of CDHPs launched in the last two years, some companies would rather wait and see how others fare before they take action.