Consumer Driven Health Plans

Consumer driven health plans refer to high-deductible medical plans that are partnered with an employer-funded reimbursement account. A consumer driven health plan (CDHP) might also be referred to as a consumer directed health plan or even a Health Savings Account (HSA).

What CDHPs Are For

Consumer driven health plans feature three primary components designed to assist employees and employers. The purpose of this type of plan is to give employees more financial involvement in their own health care. A CDHP allows workers to make informed choices regarding what kind of treatment they want and the type of health care they expect.

Consumer driven health plans release information to their enrollees so they can compare plan details and personally manage their health care and treatment options. CDHPs are typically associated with employer-funded health insurance and HSAs. Health savings accounts are special accounts that assist enrollees with out-of-pocket medical expenses. While the account is consumer controlled, an employer can also make contributions to the funds.

Privately Owned CDHPs

Consumer driven health plans were originally affiliated with group insurance policies provided by employers. However, CDHPs are growing in number among private health insurance companies thanks to changing federal insurance laws. While CDHPs are not common among private insurance companies, they are starting to appear.

The Kaiser Family Foundation recently demonstrated their consumer-directed health plan, available to enrollees for convenient use by way of online tools. Other private insurance companies like Humana and Lumenos demonstrated their own consumer driven health plans,made available to enrollees with special consumer web tools. These demonstrations proved that insurance companies can offer CDHP plans that allow the consumer to manage the cost and quality of their health care from their own home.

Consumer driven health plans are a welcomed change to health insurance. They allow patients flexibility, affordable costs and most importantly, a reserve balance for future medical expenses. Even if their current health plan is a good one, paying high deductibles can be a headache. But consumer driven health plans can take care of your out pocket costs, leaving you only life itself to contend with.