Moving mainstream: CDHP plans gain ground. This data demonstrates a growing trend. More employers are offering HSA-eligible plans, and more consumers are choosing those plans than ever before. Last revised: June 2017

Healthcare costs are up across all industry sectors for employers and employees. Many employers are shifting their benefit designs to include CDHPs as a way to control costs, while still offering desirable benefit options to their employees. The number of employers incorporating CDHPs into their benefit designs is growing. CDHPs are growing in popularity among employees, too. Overall HSA assets are growing and are on track to reach $52.4 billion in total assets by 2018. HSA balances are up as consumers better understand the tax benefits of these accounts. As employees contribute more to tax-advantaged HSAs, they may experience more financial benefits over time. Employers who offer CDHPs need to understand that employee education is fundamental. Employees need to fully understand the tax-advantaged nature of these accounts to get the greatest financial benefits from them. Key insights

Average annual premium for covered workers, by industry Health care costs are similar for employers in every industry. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2016.

Over the past several years, more and more employees are choosing CDHPs. CDHP Enrollment Source: 20th Annual National Business Group on Health/Towers Watson Employer Survey, 2015.

Annual contributions for family coverage by plan type Employers spend an estimated $1,000 less on HSA-qualified plans costs than PPOs. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2016.

Source: Devenir. Year-End HSA Research Report. 2016 HSA assets are growing and are expected to reach $52.4 billion by 2018. Total HSA assets in billions Source: Devenir. Year-End HSA Research Report. 2016

Source: Devenir. Year-End HSA Research Report. 2016 Average balance by year the account opened HSA-qualified plans encourage consumer saving for both health care expenses and for retirement. Source: Devenir. Year-End HSA Research Report. 2016

Average salary by age group and plan selection Higher income earners tend to choose HDHPs more often. Lower premiums and greater savings could be contributing factors. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2016.

Source: Mercer – HSAs: Full replacement or Choice? – Beth Umland The difference between offering an HSA as an option or a full replacement Employers who offer multiple plan choices, pay nearly $2,000 more on average per employee than those who only offer HSA-based plans. Source: Mercer – HSAs: Full replacement or Choice? – Beth Umland

Average annual firm and worker premium contributions Both employers and employees pay less out of pocket on average for HDHP plans versus traditional plan types. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2016.

Percentage of covered workers enrolled in an HSA-qualified or HDHP/HRA HDHPs continue to grow in popularity among employees. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006-2016.

Distribution of health plan enrollment for covered workers While most traditional plan types have declined in popularity among covered workers, HDHPs continue to grow and are now a staple plan among employers. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2016.

Percentage of covered workers enrolled in an HDHP/HRA or an HSA-qualified HDHP Due to rising health care costs, covered workers enrolling in CDHP plans continues to grow. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2005-2016.

Both large and small firm employees are choosing HDHPs as a means of cost savings and long-term tax benefits. Percentage of covered workers enrolled in an HDHP/HRA or an HSA-qualified HDHP in 2016 Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2016.