ConnectedHealth Data Reveals $50 Savings Rule as Threshold for Employees to Switch to High Deductible Health Plan
, provider of the premier health insurance exchange and award-winning benefits shopping platform, has released data showing that employee adoption rates of high deductible health plans (HDHP) substantially increase when individuals see a premium savings of at least $50 per month. ConnectedHealth’s CEO John Fiacco will announce the Company’s findings this afternoon at the William Blair “Benefits Brokerage and Healthcare Exchange Seminar” in Boston, Massachusetts.
Based on recent research of employers using the ConnectedHealth private exchange platform with an employer defined contribution, when employees could save $50 or more per month on their portion of their health insurance premium, the majority were willing to switch to a high deductible plan and take on an additional financial risk of $500 to $1,500.
“Similar to the way $25 is often considered the magic number in getting people to engage in employee incentive programs, we have documented what we call the ‘$50 Rule’ when it comes to increasing the adoption rates of consumer-driven high deductible health plans,” said Fiacco. “Based on our research, these plan designs have to offer meaningful financial benefits for the employee to help them overcome their risk concerns, and $50 seems to be the tipping point.”
With a defined contribution approach through the ConnectedHealth private exchange, the company’s partners can determine the contribution amount for each category of benefit-eligible employees. Employees can then shop on ConnectedHealth’s platform using those funds and choose their insurance based on the selection offered by their respective company.
“Everyone is talking about the emerging health-care consumer, but the irony is that they have always been here,” said Fiacco. “In our experience, when you give people the right tools and transparency, consumers make smarter decisions. Our platform generates real-time insights into the shopping behavior of the consumer and we share those insights with our clients to help them grow and prosper.”
ConnectedHealth drives corporate growth by making it easy for employees to be healthy and financially secure. Founded by pioneers of the consumer transparency movement, the Company’s award-winning consumer-friendly platform delivers innovative benefits strategies while offering consumers the most intuitive benefits shopping platform available. To learn more about how ConnectedHealth is revolutionizing group and individual benefits, visit us at or on , and .