Tag: CDHPs

HSAs: Client Success Story – Practice Fusion

In our latest video, the Benefits Manager & HRBP at Practice Fusion discusses the benefits they’ve seen from their Health Savings Account program with Sterling Administration.

Learn more about HSAs and Sterling Administration.

Watch HSAs: Client Success Story – LA Mission here.
Watch HSAs: Client Success Story – Northern California Teamsters Trust here.

Consumer Driven Health Plans Help Consumers & Employers

Consumer driven health plans (CDHPs) help millions of American workers and their employers reduce healthcare expenses by shifting behaviors, rather than shifting costs. This trend continues to be validated in healthcare studies and by Sterling clients. With CDHPs, the evidence is clear that employee health utilization and employer healthcare premiums are reduced.

A long-time Sterling client, the Northern California Teamsters Trust, achieved these results with HSA plans (2013 data):

  • Medical costs were $861 per employee per year under the HSA plan vs. $1,076 under the traditional plan.
  • Drug costs were $62 per employee per year under the HSA plan vs. $154 under the traditional plan.

A recent Strategic Benefits—Health Care Survey (January 22, 2015), found that 19% of respondents offering employee coverage said CDHPs – including plans with health savings accounts (HSAs) and health reimbursement arrangements (HRAs) – are the most effective way of controlling the rising cost of health coverage.

Similarly, the Eighth Annual Cigna Choice Fund Experience Study (April 23, 2014) compared the claims experience of over 3.6 million Cigna customers enrolled in a CDHP, a traditional PPO or HMO health plan. The study found that people covered by CDHPs are more likely to “own” their health and health spending, resulting in improved total medical expenses by 12%. CDHP healthcare consumers:

  • Are more engaged – Nearly 50% are more likely to complete a health risk assessment and those with chronic illnesses are up to 41% more likely to participate in disease management.
  • Are more likely to manage their health benefits – 75% of CDHP customers use online tools to manage their health benefits and access information on care cost, quality and procedures.
  • Demonstrate lower health risks – Employers that transitioned to offering only a CDHP option had 14% more low-risk individuals and 28% fewer high-risk individuals compared to those in a traditional plan.
  • Reduce total medical costs – The CDHP medical cost trend was 12% lower than traditional plans during the first year. Employers did not shift out-of-pocket health expenses to employees in order to achieve reductions.

Both the Northern California Teamsters Trust and LA Mission, another Sterling client, discuss the advantages they realize with CDHP plans and Sterling HSAs. Go to the Sterling YouTube channel to hear in their own words how HSAs benefit their organizations:

Learn more about CDHP plans or call 800-617-4729. Our full suite of products includes HSA, HRA, FSA, POP, COBRA, ERISA Wrap, Form 5500 Filing and ACA compliance services.

HSAs: Client Success Story – LA Mission

In our latest video, the Director of Human Resources at the Los Angeles Mission discusses the benefits they’ve seen from their Health Savings Account program with Sterling Administration.

Learn more about HSAs and Sterling Administration.

Watch HSAs: Client Success Story – Northern California Teamsters Trust here.