According to a recent survey of 208 benefits managers, 22 percent of companies responding now offer a consumer driven health plan option (CDHP) to employees. Validating the growing consumer health trend, 74 percent of the companies offering CDHPs started them in 2004 and 2005, with over half that group only implementing CDHPs this January. Aon Consulting conducted the survey in conjunction with the International Society of Certified Employee Benefit Specialists (ISCEBS), in January and February of this year.

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Bill Sharon, senior vice president with Aon Consulting's health & welfare practice, said, "We may be looking at the tipping point for consumer driven health plans being embraced by U.S. companies. To date, 2005 CDHP plan starts have exceeded 2004's record benchmark, and our survey reveals the trend will only continue."

More CDHPs in the Pipeline

Of the employers not currently offering a CDHP, 50 percent plan to offer them in the future, with 13 percent of the respondents indicating this will happen this year or next. 37 percent of benefits managers said they are undecided on an effective date to launch the offerings. The remaining 50 percent of companies not offering CDHPs today believe the concept is too new and will wait to see other employers' experience with CDHPs before deciding to offer one themselves.

Sharon said, "That is a very telling response. The majority of those who said they are not considering CDHPs have left the door open. This wait-and-see attitude is not surprising, but also indicates that as the consumer driven trend continues this growth pattern, we will see many of these benefits managers changing their opinion sooner than they think."

Of the employers planning to offer a CDHP in the near future, 49 percent anticipate offering a health savings account (HSA) either as an option (38 percent) or as a total replacement for their existing health plans (11 percent).

Sharon stated, "This finding seems to reflect the potential future popularity of HSAs versus a health reimbursement arrangement (HRA). This runs contrary to the early experience with CDHPs reflected in the survey, where two-thirds of employers currently offering CDHPs -- offer an HRA."

CDHPs and the Workforce

The majority of respondents in the survey (55 percent) believe CDHP design makes employees better, more efficient consumers of health care, with only 8 percent believing it has no effect on employee health care purchasing. Reflecting a hesitance of some employers to embrace the consumer-driven concept, 22 percent believe CDHP designs lead employees to forego needed health care to save money.

On the future of the CDHP concept, a similar percentage (29 percent) believes CDHPs will be unsuccessful in controlling employers' health care costs in five years. The remaining respondents believe CDHPs either will be successful (37 percent) or don't know (34 percent).

This group is also split over how they believe CDHPs will fit into their benefit packages in the future. Of the members expressing an opinion on this future fit (excluding 41 of the 209 total who did not know), 89 percent believe their employers will be offering a CDHP in five years. These members, however, are split on its popularity with 23 percent believing CDHPs will cover over half their workforce and 37 percent believing it will cover less than 25 percent of employees. Only 11 percent of the members expressing an opinion believe their employer will not be offering a CDHP.

Sharon concluded, "The consumer driven era in healthcare has arrived, and Aon Consulting expects to see this trend really take off in 2005 and 2006. By the end of the current decade CDHPs will be an offered option by the vast majority of U.S. companies. And if companies approach these plans carefully and strategically, we believe they will be satisfied with the results."

To see all survey questions and answers, please visit: http://www.iscebs.org/ .

About Aon

Aon Corporation (NYSE: AOC) ( http://www.aon.com/ ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 48,000 professionals in its 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

Aon Consulting is among the top global human resources consulting firms, with 2004 revenues of $1.247 billion and 7,500 professionals in 120 offices throughout the world. Aon Consulting delivers integrated consulting solutions to help clients with employee benefits, human resources outsourcing, compensation, communication and management consulting.

About ISCEBS

The International Society of Certified Employee Benefit Specialists (ISCEBS) is the premier interactive community providing educational resources, innovative thinking and collective wisdom to help members excel and prosper in their careers. This membership organization is for those who have earned the Certified Employee Benefit Specialist (CEBS), Group Benefits Associate (GBA), Retirement Plans Associate (RPA) and Compensation Management Specialist (CMS) designations.

   Contact:
   Dana Sohn, Aon Consulting, +1.312.381.4786, dana_sohn@aon.com
   or
   Stacy Van Alstyne, ISCEBS, +1.262.786.6710 ext. 8217, stacyv@ifebp.org

This press release contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors that could impact results include: general economic conditions in different countries in which we do business around the world, changes in global equity and fixed income markets that could affect the return on invested assets, fluctuations in exchange and interest rates that could influence revenue and expense, rating agency actions that could affect our ability to borrow funds, funding of our various pension plans, changes in the competitive environment, changes in commercial property and casualty markets and commercial premium rates that could impact revenues, changes in revenues and earnings due to the elimination of contingent commissions, other uncertainties surrounding a new compensation model, the impact of regulatory investigations brought by state attorneys general and state insurance regulators related to our compensation arrangements with underwriters and related issues, the impact of class actions and individual lawsuits including derivative actions and claims under ERISA, the cost of resolution of other contingent liabilities and loss contingencies, and the difference in ultimate paid claims in our underwriting companies from actuarial estimates. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission.

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SOURCE: Aon Corporation

CONTACT: Dana Sohn of Aon Consulting, +1-312-381-4786,
dana_sohn@aon.com , or Stacy Van Alstyne of ISCEBS, +1-262-786-6710 ext. 8217,
stacyv@ifebp.org

Web site: http://www.aon.com/
http://www.iscebs.org/