Consumer-Driven Health Plans in the Public Sector

With the costs of providing healthcare benefits to employees and dependents continuing to soar, state governments across the country are looking for ways to minimize cost increases but also encourage better outcomes for the employees and their families. Research has shown that the state government employee population with higher than average healthcare utilization.

In recent years, states have continued to evaluate plan design changes with the traditional PPO and HMO plans offered and have coupled them with initiatives such as chronic disease management and wellness programs. Overall, the cost of providing these plans has not experienced continued, significant savings. In 2006, Indiana became a pioneer in state government by offering a Consumer-Driven Healthcare Plan that encourages consumers (state employees and their dependents) to make more informed choices regarding their healthcare to have a stake in the decisions they make. Now, with a vast majority of their employees participating in a Consumer-Driven Health Plan, the state has saved millions of dollars, seen healthcare utilization decrease and their outcomes improve.