Given the choice between lower premiums or access to more providers, an overwhelming majority of employees would opt for the cost savings.
Nearly 90 percent of employees surveyed would consider a less-expensive plan that allowed access only to in-network doctors and facilities, required referrals from a gatekeeper, or both.
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This is one of several insights discussed in a new white paper produced by Liazon, a private benefits exchange in Buffalo, New York.
Eighty-three percent of employees are open to in-network provider plans. This corroborates earlier research by Liazon, which found that the majority of employees actually chose an HMO plan with multiple restrictions, including in-network only coverage, a narrow limited network and referral requirements.
"We've found that with a range of plan choices, employees are willing to explore various types of plans, especially those that provide substantial cost savings," said Alan Cohen, co-founder and chief strategy officer for Liazon. "Whereas employers might have previously pushed employees towards these types of plans, we now see employees choosing these options on their own."
The white paper draws upon 2013 data from tens of thousands of employees going through the benefits selection process to determine what factors go into the selection process.
"The proliferation of these types of plans supports the evolution of the newly consumerized health-care industry," Cohen said. "When people have the power of choice, in an environment of cost transparency, they evaluate what they are getting for their money and make decisions based on trade-offs just as they do for other purchases."
The authors of the white paper draw several conclusions:
- When people have choice and bear the cost of these trade-offs, they are willing to accept plan restrictions, either by means of a more restricted network or a plan with tightly coordinated care, in exchange for lower premiums.
- Plans with in-network only coverage are more popular than those that require referrals. This may be a result of the HMO era and employees who may have had negative experiences with these types of plans. This difference suggests that plan design is still important in health care choices.
- Employees are open to plans with lower premiums but differ in what they will trade to receive them.
"As consumers continue to become more involved in their own health-care choices," Cohen said, "these valuable insights into consumer preferences will help employers understand the need for a variety of plan types for their employee population."
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
