Aite Group anticipates that the CDH market will rise from close to 29 million accounts at year-end 2008 to 45 million accounts by year-end 2012.
Boston, MA, February 8, 2010 – A new report from Aite Group, LLC provides a market overview of the consumer-directed healthcare market for HSAs, HRAs, and FSAs. It estimates the potential revenue opportunity for the entire market, and offers a detailed breakdown of the current and anticipated growth, and potential revenues for each account type through 2012.
Aite Group estimates that the consumer-directed healthcare (CDH) industry has been growing at a steady rate of 71% CAGR over the past four years. This is due largely to a shift in costs onto the consumer and employers seek to reduce their own healthcare costs. Adoption rates for CDH plans are rising given that premiums for CDH plans increase at an average of 3% per year, compared to approximately 8% per year for PPO and HMO plans. Despite uncertainty caused by current health reform initiatives, the CDH space will continue to grow, undeterred. Aite Group anticipates that the CDH market, including HSAs, HRAs, and FSAs, will rise from close to 29 million accounts at year-end 2008 to 45 million accounts by year-end 2012.
"Although the CDH space has been plagued with uncertainty over potential changes to the nation's healthcare system, financial institutions and health plans continue to see a steady uptake in the adoption of these accounts," says Kunal Pandya, senior analyst with Aite Group and author of this report. "Aite Group believes that even legislation discontinuing a particular CDH account type would fail to disrupt overall growth of the CDH market. In this instance, the transition of subscription from one CDH account to another (from an FSA to an HRA, for example), would merely improve the forecast for the winning account type."
This 45-page Impact Report contains 53 figures. Clients of Aite Group's Health Insurance service can download the report.