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March 19, 2008
Big Jump in CDHP Enrollment in 2007
The number of Americans enrolled in consumer-directed health care plans (CDHPs) increased at a "staggering" rate in 2007, according to a new study.

In 2006, 10 million Americans were enrolled in a CDHP, and 2.5 million more were enrolled in 2007--a 25 percent increase, the American Association of Preferred Provider Organizations (AAPPO) announced in conjunction with the release of its "2008 Study of Consumer-Directed Health Plans." The study also found that 97 percent of CDHPs are built on a preferred provider organization (PPO). Nearly two-thirds of Americans (165 million) are currently enrolled in a PPO according to the study.

"The hallmarks of PPOs ­ choice, access and flexibility ­ are clearly contributing factors enhancing the CDHP model and promoting the continued growth that is being seen in CDHP enrollments," said AAPPO President Karen Greenrose, in a press release. "PPOs are the perfect platform to spur growth in CDHP enrollments due to the flexibility and choice inherent in the PPO delivery model."

AAPPO explains that CDHPs have "become more popular and accessible in recent years as more Americans seek to take a greater role in making choices and decisions concerning their own health care."

AAPPO notes that, according to the study, employers offering CDHPs are "more likely to provide health information tools, such as information on health conditions and data on provider quality and cost, to their employees than employers not offering CDHP products." Such tools, says AAPPO are "the keys to promoting consumers' satisfaction with CDHPs."

The study also breaks down the numbers of those enrolled in CDHPsOf the 12.5 million enrolled in 2007, 7.5 million people were enrolled in Health Reimbursement Account (HRA)-based plans and 5 million in Health Savings Account (HAS)-based plans.

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