Asparity Decision Solutions reports 50,000 federal employees become better health care consumers

Asparity Decision Solutions, a leading provider of decision support and data solutions in health care and employee benefits, reports that 50,000 federal employees used PlanSmartChoice during the 2010 federal open season to become better health care consumers. The PlanSmartChoice online health plan selection tools are available free to all federal employees to help them select a medical plan that best provides for their personal and financial needs.

“The Office of Personnel Management and federal agencies of all shapes and sizes did a terrific job of making sure their employees had the help they needed during the open season.”

“As the President and Congress explore health care reform, they can look to their fellow federal employees as examples of excellent health care consumers,” said Colleen M. Murphy, Asparity’s President and CEO. “Health care is one of the most important—and expensive—decisions federal employees make every year, and 50,000 of their colleagues used PlanSmartChoice to make an informed one.”

During the 2010 federal open season, federal employees had an average choice of 20 medical plan options, as well as dental, vision, and tax savings plans. Federal employees who used the PlanSmartChoice health plan selection tools:

• Enrolled in plans that best met their personal and financial needs. About half of PlanSmartChoice users changed plans (41%), and they switched out of Health Maintenance Organizations into Consumer Directed Health Plans, Fee-for-Service Plans, High Deductible Health Plans, and Preferred Provider Organizations. By using the tools, the others confirmed that their current health plan still met their needs.
• Evaluated cost, access, benefits, and satisfaction when selecting a medical plan. Employee contribution was the most important consideration, as were other financial issues (e.g., annual deductible and the cost of prescription drugs and doctor visits).
• Learned that medical plan performance varied significantly. While individual results may have varied, on average, PPOs were the most affordable plans with an average total cost of $3,314, FFS plans best provided for federal employees’ personal needs (such as access to out-of-network providers), and HMOs had the highest satisfaction ratings.
• Reported that cost concerns drove employees’ decision to switch plans. Of those who changed plans, 80 percent reported doing so because their current plan's employee contribution, annual deductible, or drug costs were too high.
• Spent an average of four to five percent of their annual income on health care (given that site users had an average income of $90,000 and an average total cost of about $4,000). Federal employees could spend much more depending on their income level and plan choice.
• Enrolled in a flexible spending account to further control their health care costs. Nearly 40 percent of PlanSmartChoice users enrolled in the FSA in 2010 compared to the federal average of 14 percent. These employees reduced their costs by an average of $561 or 14 percent by participating in the FSA.

PlanSmartChoice had wide usage across all Federal agencies, with users representing all 50 states, 87 countries, and six contents. “Federal employees enjoy a wide range of affordable medical plan options, and the choices can be overwhelming,” said Murphy. “The Office of Personnel Management and federal agencies of all shapes and sizes did a terrific job of making sure their employees had the help they needed during the open season.” PlanSmartChoice was promoted to federal employees through their agencies’ benefit communications, site links, and health fairs. PlanSmartChoice users overwhelmingly agreed that the site made choosing a plan easier and helped them make an informed decision. PlanSmartChoice now has daily usage by new hires and status changes.

PlanSmartChoice is free to all federal employees. They access the health plan selection tools at www.PlanSmartChoice.com and use them to:

• Learn which medical plan best meets their personal and financial needs,
• Understand the total cost of their health care based on their own need for medical services,
• Determine how much to contribute to FSAFEDS to control their health care costs, and
• Compare detailed benefits across their medical, dental, and vision plan options.

Asparity makes the PlanSmartChoice site available to select sponsors and the aggregated data available to federal agencies and health plans. These organizations can use the data to better understand federal employees’ health care needs and buying behavior, and to improve health plan products and prices.

The results are based on the following data sources from the 2010 open season:

• During registration, 49,294 users provided self-reported demographic and 2009 plan information.
• During enrollment, all users’ results were saved and aggregated for reporting purposes.
• After enrollment, Asparity surveyed users about their 2010 benefit choices; 9,251 responded to the survey.