The Rise of HDHPs: What Our Data Shows

High-deductible health plans have been growing for years, but the pace of adoption has accelerated. Here's what we're seeing in the data.

What's Driving Adoption

Cost management — HDHPs typically have lower premiums than traditional PPOs. For employers facing annual cost increases, the math is compelling.

HSA integration — Health Savings Accounts pair naturally with HDHPs, offering tax advantages to both employers and employees. As HSA awareness has grown, so has HDHP appeal.

Consumer-directed care philosophy — There's a belief—supported by some research—that higher deductibles make employees more thoughtful healthcare consumers. Whether this leads to better outcomes is debated, but the cost-sharing logic resonates with many employers.

What We're Watching

Deductible levels — Are they stabilizing or still climbing? We're seeing some plateau in deductible growth, suggesting employers may be approaching a ceiling of employee tolerance.

Employer HSA contributions — The most competitive HDHP offerings include meaningful employer HSA contributions. We're tracking how these contributions are evolving.

Employee satisfaction — Anecdotal evidence suggests some employee pushback on HDHPs. We're watching whether this affects employer plan design decisions.

Implications for Consultants

When benchmarking a client's HDHP, context matters. An employer at the 50th percentile on deductible might be at the 80th percentile on employer HSA contribution. The full picture tells a different story than any single data point.

If your client hasn't considered an HDHP option, the market data suggests they should at least evaluate it. If they already have one, benchmarking ensures their specific design remains competitive.