CDHPs are health insurance plans that use high deductibles coupled with tax-advantaged personal health spending accounts HSAs to increase consumer accountability for their own health care spending.
What types of consumers would find value in a CDHP? Payers may find that there are both significant advantages and challenges when it comes to consumer-directed health plans. These plans may attract younger individuals with higher health literacy and a desire to control more of their spending.
On the other end of conversation, healthcare experts including a team of researchers from Indianapolis University and the Center for Health Reform in Dallas believe that HDHPs and similar offerings may reduce necessary healthcare utilization. What is a consumer directed health plan?
They also had a higher likelihood to engage in wellness and preventive health behaviors. CDHPs are based on low cost-sharing, and higher deductibles, which require active engagement in purchasing decisions from the consumer. When considering or promoting CDHPs to potential enrollees, payers should make sure that the plan benefits align with consumer needs that effectively encourage smart healthcare utilization and meet the priorities of beneficiaries in different financial circumstances.
EBRI determined that Millennials were more likely to be engaged when picking a health plan and making cost-conscious health care decisions. These include interactive online health plan statements, hospital cost and quality comparison tools, medication cost and coverage search tools, health care cost search tools, and readily available health and wellness information.
Younger generations were also more likely than Gen-Xers and Baby Boomers to ask doctors for less expensive generic prescription drugs for treatments and utilize cost-tracking tools in order to manage healthcare costs.
CDHPs can save costs for payers and beneficiaries, but CDHPs may increase patient risks and be found to have little value to specific consumer groups.
Payers that have a clear understanding of the risks and rewards of CDHPs can create successful offerings in this segment of the insurance market. This allotment covers services such as prescription drug purchasing, preventive care, and routine office visits where enrollees only pay for copays and applicable coinsurance on these services.
They are generally advertised as plans that include care coordination tools and many cost-sharing benefits. This could lead to expensive conditions down the line, including avoidable hospitalizations and long-term spending on chronic diseases.
CDHPs may be a suitable health plan option for some individuals, but not for all. CDHPs are often confused with high-deductible health plans. Other benefits that encourage in-network use of the Options PPO plan include lower cost-sharing amounts for more covered services as long as beneficiaries utilize services in that network.View Essay - Features of Private Payer and Consumer Driven Health Plans from HCR at University of Phoenix.
Features of Private Payer and Consumer Driven Health Plans Nicole Gibbs June 29,89%(9). college Write a to word response that familiarizes you with private payer plans and CDHP account types.
Briefly list three to five main features for the following nine items. Features of Private Payer and CDHP HCR (3 Pages | Words) Private Payer and CDHP Concerning medical insurance, there are several types of Private Payer and Consumer-Driven Health Plans (CDHP).
Private Payer Summary A CDHP combines a high-deductible health plan with a tax-advantaged account, normally either a health reimbursement account (HRA) or a health savings account (HSA), which enrollees can use to pay some of their medical expenses.
Withdrawals from HRAs and HSAs to pay for qualified medical expenses are exempt from federal. Features of Private Payer and Consumer-Driven Health Plans The following reading is to familiarize the reader with private payer plans and types of consumer-driven health plan (CDHP) accounts.
Private Payers News. What are the Pros and Cons of Consumer Directed Health Plans?
Payers may find that there are both significant advantages and challenges when it comes to consumer-directed.Download